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The PSD2 & Open Banking Biometric Authentication Market grew from USD 5.64 billion in 2023 to USD 6.21 billion in 2024. It is expected to continue growing at a CAGR of 10.27%, reaching USD 11.18 billion by 2030. Speak directly to the analyst to clarify any post sales queries you may have.
The scope of PSD2 and Open Banking Biometric Authentication primarily revolves around enhancing security and user verification processes in financial transactions. The necessity for this technology stems from the increased demand for secure online banking systems and the legal frameworks like PSD2 mandating strong customer authentication measures. Its application extends to various financial services, including online banking, digital wallets, and fintech applications, where secure, rapid, and user-friendly authentication is crucial. The end-use scope includes banks, financial service providers, and fintech companies leveraging biometric solutions such as fingerprint, facial recognition, and voice authentication to comply with regulatory standards and improve user experiences. Key growth drivers include the increasing need for robust security in online banking, rising cybercrime threats, and the global surge in digital banking adoption. Opportunities lie in expanding biometric solutions beyond traditional financial services into areas like e-commerce and payment gateways. Companies should focus on developing seamless, less intrusive biometric systems that enhance user convenience while ensuring high security. The integration of artificial intelligence and machine learning with biometric systems also presents potential for precise risk assessment, and anomaly detection, expanding protection levels. However, market growth faces challenges such as privacy concerns, high implementation costs, and the complexities associated with integrating biometric systems into existing infrastructures. Regulatory compliance and the need for standardization could also slow adoption rates. Innovative areas include multi-modal biometric systems that combine two or more biometric modalities for enhanced accuracy and security and exploring blockchain technologies to secure biometric data storage. Researching biometric solutions that work effectively across diverse demographic profiles could further expand market penetration. Despite challenges, the market is poised for growth as advancements in technology and increasing collaboration among financial institutions, and tech firms create an ecosystem ripe for innovation, offering substantial opportunities for stakeholders ready to leverage biometric authentication to enhance security and customer engagement.
Understanding Market Dynamics in the PSD2 & Open Banking Biometric Authentication Market
The PSD2 & Open Banking Biometric Authentication Market is rapidly evolving, shaped by dynamic supply and demand trends. These insights provide companies with actionable intelligence to drive investments, develop strategies, and seize emerging opportunities. A comprehensive understanding of market dynamics also helps organizations mitigate political, geographical, technical, social, and economic risks while offering a clearer view of consumer behavior and its effects on manufacturing costs and purchasing decisions.- Market Drivers
- Increasing Number of Users with Mobile Banking Application
- Rising Importance of Application Program Interfaces (APIs) in Different Financial Sectors
- High-Security Risk in Financial Transactions and Need For Multi-Factor Authentication in Payment Systems
- Market Restraints
- High Cost for Security Solution and Potential False Positives & Inaccuracy
- Market Opportunities
- Major Shift of Financial Institutions Toward the Online Business and Improving Financial Services with Customer-Centric Regulation
- Favorable Ecosystem for Tech-Startups to Develop Biometric Authentication
- Market Challenges
- Complexities in Minimizing Demographic Bias in Biometrics
Exploring Porter’s Five Forces for the PSD2 & Open Banking Biometric Authentication Market
Porter’s Five Forces framework further strengthens the insights of the PSD2 & Open Banking Biometric Authentication Market, delivering a clear and effective methodology for understanding the competitive landscape. This tool enables companies to evaluate their current competitive standing and explore strategic repositioning by assessing businesses’ power dynamics and market positioning. It is also instrumental in determining the profitability of new ventures, helping companies leverage their strengths, address weaknesses, and avoid potential pitfalls.Applying PESTLE Analysis to the PSD2 & Open Banking Biometric Authentication Market
External macro-environmental factors deeply influence the performance of the PSD2 & Open Banking Biometric Authentication Market, and the PESTLE analysis provides a comprehensive framework for understanding these influences. By examining Political, Economic, Social, Technological, Legal, and Environmental elements, this analysis offers organizations critical insights into potential opportunities and risks. It also helps businesses anticipate changes in regulations, consumer behavior, and economic trends, enabling them to make informed, forward-looking decisions.Analyzing Market Share in the PSD2 & Open Banking Biometric Authentication Market
The PSD2 & Open Banking Biometric Authentication Market share analysis evaluates vendor performance. This analysis provides a clear view of each vendor’s standing in the competitive landscape by comparing key metrics such as revenue, customer base, and other critical factors. Additionally, it highlights market concentration, fragmentation, and trends in consolidation, empowering vendors to make strategic decisions that enhance their market position.Evaluating Vendor Success with the FPNV Positioning Matrix in the PSD2 & Open Banking Biometric Authentication Market
The PSD2 & Open Banking Biometric Authentication Market FPNV Positioning Matrix is crucial in evaluating vendors based on business strategy and product satisfaction levels. By segmenting vendors into four quadrants - Forefront (F), Pathfinder (P), Niche (N), and Vital (V) - this matrix helps users make well-informed decisions that best align with their unique needs and objectives in the market.Key Company Profiles
The report delves into recent significant developments in the PSD2 & Open Banking Biometric Authentication Market, highlighting leading vendors and their innovative profiles. These include Plaid Financial Ltd., Incode Technologies Inc., Tell Money Limited, iProov Limited, Mollie B.V., Okta, Inc., Accenture PLC, Banfico Ltd, INFOSISTEMA, SISTEMAS DE INFORMAÇÃO, S.A. by JYON Group, Salt Edge Inc., Temenos Headquarters SA, Google LLC by Alphabet Inc., National Westminster Bank plc, Nok Nok Labs, Inc., ClearBank Ltd., Capgemini SE, Fujitsu Limited, TAS S.p.A., LexisNexis Risk Solutions Inc. by RELX Group PLC, Apple Inc., Moneyhub Financial Technology Ltd, Thales Group, Avanade Inc., Tata Consultancy Services Limited, Mastercard International Incorporated, Metro Bank PLC, CardinalCommerce Corporation, InfoCert S.p.A., and Enfuce Financial Services Ltd..Market Segmentation & Coverage
This research report categorizes the PSD2 & Open Banking Biometric Authentication Market to forecast the revenues and analyze trends in each of the following sub-markets:- Function
- Authentication & Authorization
- Content Based Attacks Detection
- Data Encryption
- Identity Tracking
- Message Validation
- Traffic Management
- End Users
- Banks
- Customers
- Marchants
- Payment Service Provider
- Region
- Americas
- Argentina
- Brazil
- Canada
- Mexico
- United States
- California
- Florida
- Illinois
- New York
- Ohio
- Pennsylvania
- Texas
- Asia-Pacific
- Australia
- China
- India
- Indonesia
- Japan
- Malaysia
- Philippines
- Singapore
- South Korea
- Taiwan
- Thailand
- Vietnam
- Europe, Middle East & Africa
- Denmark
- Egypt
- Finland
- France
- Germany
- Israel
- Italy
- Netherlands
- Nigeria
- Norway
- Poland
- Qatar
- Russia
- Saudi Arabia
- South Africa
- Spain
- Sweden
- Switzerland
- Turkey
- United Arab Emirates
- United Kingdom
- Americas
The report provides a detailed overview of the market, exploring several key areas:
- Market Penetration: A thorough examination of the current market landscape, featuring comprehensive data from leading industry players and analyzing their reach and influence across the market.
- Market Development: The report identifies significant growth opportunities in emerging markets and assesses expansion potential within established segments, providing a roadmap for future development.
- Market Diversification: In-depth coverage of recent product launches, untapped geographic regions, significant industry developments, and strategic investments reshaping the market landscape.
- Competitive Assessment & Intelligence: A detailed analysis of the competitive landscape, covering market share, business strategies, product portfolios, certifications, regulatory approvals, patent trends, technological advancements, and innovations in manufacturing by key market players.
- Product Development & Innovation: Insight into groundbreaking technologies, R&D efforts, and product innovations that will drive the market in future.
Additionally, the report addresses key questions to assist stakeholders in making informed decisions:
- What is the current size of the market, and how is it expected to grow?
- Which products, segments, and regions present the most attractive investment opportunities?
- What are the prevailing technology trends and regulatory factors influencing the market?
- How do top vendors rank regarding market share and competitive positioning?
- What revenue sources and strategic opportunities guide vendors' market entry or exit decisions?
Table of Contents
1. Preface
2. Research Methodology
4. Market Overview
5. Market Insights
6. PSD2 & Open Banking Biometric Authentication Market, by Function
7. PSD2 & Open Banking Biometric Authentication Market, by End Users
8. Americas PSD2 & Open Banking Biometric Authentication Market
9. Asia-Pacific PSD2 & Open Banking Biometric Authentication Market
10. Europe, Middle East & Africa PSD2 & Open Banking Biometric Authentication Market
11. Competitive Landscape
List of Figures
List of Tables
Companies Mentioned
The leading players in the PSD2 & Open Banking Biometric Authentication market, which are profiled in this report, include:- Plaid Financial Ltd.
- Incode Technologies Inc.
- Tell Money Limited
- iProov Limited
- Mollie B.V.
- Okta, Inc.
- Accenture PLC
- Banfico Ltd
- INFOSISTEMA, SISTEMAS DE INFORMAÇÃO, S.A. by JYON Group
- Salt Edge Inc.
- Temenos Headquarters SA
- Google LLC by Alphabet Inc.
- National Westminster Bank plc
- Nok Nok Labs, Inc.
- ClearBank Ltd.
- Capgemini SE
- Fujitsu Limited
- TAS S.p.A.
- LexisNexis Risk Solutions Inc. by RELX Group PLC
- Apple Inc.
- Moneyhub Financial Technology Ltd
- Thales Group
- Avanade Inc.
- Tata Consultancy Services Limited
- Mastercard International Incorporated
- Metro Bank PLC
- CardinalCommerce Corporation
- InfoCert S.p.A.
- Enfuce Financial Services Ltd.
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 190 |
| Published | October 2024 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 6.21 Billion |
| Forecasted Market Value ( USD | $ 11.18 Billion |
| Compound Annual Growth Rate | 10.2% |
| Regions Covered | Global |
| No. of Companies Mentioned | 29 |
