Payment Security Global Market Report 2024

Payment security encompasses the rules, regulations, and security mechanisms implemented to safeguard the privacy, data, and transactions of customers or partners, aiming to prevent issues such as money laundering, fraudulent transactions, and data breaches. These mechanisms are designed to ensure data security for customers, prevent unauthorized transactions, and mitigate the risk of data breaches.

The main types of solutions in the payment security market include encryption, tokenization, and fraud detection and prevention. Encryption is a security and fraud prevention technique that involves automatically reordering and breaking apart data before it is transmitted over telephone lines or the internet. Encryption is utilized to protect both data in transit and data at rest. Payment security services encompass integration services, support services, and consulting services catering to both large enterprises and small and medium-sized enterprises (SMEs). Industries using payment security solutions span across retail, travel and hospitality, healthcare, IT and telecom, education, media and entertainment, and others (including automotive, financial services, and manufacturing).

The payment security market research report is one of a series of new reports that provides payment security market statistics, including payment security industry global market size, regional shares, competitors with an payment security market share, detailed payment security market segments, market trends and opportunities, and any further data you may need to thrive in the payment security industry. This payment security market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The payment security market size has grown rapidly in recent years. It will grow from $27.55 billion in 2023 to $31.55 billion in 2024 at a compound annual growth rate (CAGR) of 14.5%. The growth observed in the historic period can be attributed to factors such as the rise of e-commerce, an increase in digital transactions, globalization of financial transactions, incidents of data breaches, and heightened consumer awareness and expectations in terms of payment security.

The payment security market size is expected to see rapid growth in the next few years. It will grow to $56.54 billion in 2028 at a compound annual growth rate (CAGR) of 15.7%. The anticipated growth in the forecast period can be attributed to factors such as the emergence of contactless payments, advancements in blockchain and cryptocurrency security, integration of biometric authentication, regulatory developments, and the continuous evolution of cyber threats. Major trends expected in the forecast period include the increasing prevalence of cyber threats, the globalization and rise of cross-border transactions, the growing popularity of mobile and contactless payments, heightened consumer awareness, and an emphasis on fraud prevention in payment security.

The anticipated rise in the adoption of digital payment methods is poised to drive the growth of the payment security market. Digital payments, known for their speed, safety, and convenience, have become a prevalent method for purchasing goods and services. In order to foster consumer trust and address concerns about fraud and security in digital payments, robust payment security measures are crucial. These measures work to prevent fraud and instill confidence in users engaging in digital payment transactions. A notable example is the exponential increase in digital payment transactions reported by the Press Information Bureau (PIB) of India, revealing a rise from 3,134 crores (31.34 billion) in FY 2018-19 to 5,554 crores (55.54 billion) in FY 2020-21. The growing reliance on digital payment modes, such as Bharat Interface for Money-Unified Payments Interface (BHIM-UPI), underscores the importance of payment security solutions in facilitating secure and trusted transactions.

The surge in smartphone penetration is expected to be a driving force behind the growth of the payment security market. With smartphones being versatile handheld devices that integrate communication, computing, and various features, there is an increased demand for robust security measures to protect sensitive financial information. Payment security on smartphones involves deploying encryption, biometric authentication, and tokenization to ensure the security of financial data during transactions. For instance, the increased penetration of smartphones in the USA, with 307 million users reported by Zippia in March 2023, showcases the widespread use of these devices. This rise in smartphone adoption significantly contributes to the growth of the payment security market.

Technological advancement stands out as a prominent trend gaining traction in the payment security market, with Three-Domain Secure 2.0 (3DS 2.0) leading the way. As digital payments witness increasing adoption, technology is evolving to enhance transaction security in digitalized payment platforms. 3DS 2.0 represents a significant leap in digital transaction security technology, providing an extra layer of fraud protection for online credit or debit card purchases. The technology leverages contextual data to detect and prevent fraud, creating an authentication pipeline among online merchants, payment networks, and financial institutions. Notably, PayU, a leading online payments solution provider, launched its 3D Secure 2.0 SDK authentication service in February 2023. This service enhances tokenization capabilities, improving online payment security for both merchants and consumers.

Major companies in the payment security market are strategically forming partnerships to effectively manage risk. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefits. An example is the partnership between Visa and Expel, announced in February 2023. The collaboration aims to empower customers to shift from a reactive to a proactive security posture, enhancing threat detection and response capabilities in the face of evolving cybersecurity threats.

In May 2022, TokenEx, a provider of cloud-based data security services, acquired Auric Systems International to expand its presence in Latin America and Africa. This strategic move enhances TokenEx's capabilities with Auric System's secure data storage service, known as AuricVault.

Major companies operating in the in the payment security market report are CyberSource Corporation, Elavon Inc., Bluefin Payment Systems LLC., Ingenico Group., SISA Information Security Pvt Ltd., Mastercard Inc., Experian plc., Eastnets, Interkassa, Adyen N. V., Stripe India Private Ltd., PayPal Holdings Inc., Square Inc., Worldpay Inc., Braintree, Authorize. Net LLC., BlueSnap Inc., Fiserv Inc., ACI Worldwide Inc., Verifone Systems Inc., First Data Corporation, Global Payments Inc., Total System Services Inc., PayU, Paysafe Group Limited, CyberArk Software Ltd., RSA Security LLC., Thales Group, Gemalto N. V., Entrust Datacard Corporation

North America was the largest region in the payment security market in 2023. The regions covered in the payment security market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the payment security market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The payment security market includes revenues earned by entities by preventing unwanted transactions and data breaches and ensuring that the data of their consumers is protected. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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