The global 3D secure payment authentication market size is expected to reach USD 2.76 billion by 2030, growing at a CAGR of 12.7% from 2023 to 2030. The growth of the market can be attributed to the increasing advancements in payment authentication technology and the extensive utilization of digital technologies for online payment processing. Furthermore, the rapid expansion of e-commerce and the transition towards online shopping, particularly amid the COVID-19 pandemic, has resulted in a notable increase in online transactions. Thus, there has been an increased demand for secure payment authentication solutions. Many players are developing authentication solutions with new features and functions to cater to changing customer needs and offer a better customer experience.
For instance, in February 2023, PayU, an Indian online payment solutions provider, launched 3D Secure 2.0 SDK to enhance the customer experience and offer a seamless native checkout for all card transactions. The lightweight 3DS 2.0 SDK by PayU significantly reduces latency and streamlines the checkout process, resulting in a 40% reduction in checkout time. Such initiatives are expected to improve the growth of the market during the forecast period. Furthermore, 3D secure payment authentication solution providers across the globe are collaborating closely with banks and financial institutions to develop innovative technologies and components which is expected to drive the growth of the market. They work together in joint research and development initiatives to create more efficient authentication solutions.
For instance, in May 2022, Entersekt, a prominent global provider of device identity and authentication solutions, unveiled the implementation of its cutting-edge EMV 3-D Secure solution by Capitec Bank. This innovative solution enhances the security of e-commerce transactions while simultaneously reducing obstacles for cardholders. The global pandemic outbreak has been favorable to market growth. The lockdown and stringent regulations for social distancing boomed e-commerce and online shopping during the pandemic, which eventually led to the increased use of cards not present and other online payment methods. The surge in online card-not-present (CNP) frauds during the pandemic led to an increased demand for 3D secure payment authentication among e-commerce and other merchants, aiming to mitigate fraudulent activities.
For instance, in February 2023, PayU, an Indian online payment solutions provider, launched 3D Secure 2.0 SDK to enhance the customer experience and offer a seamless native checkout for all card transactions. The lightweight 3DS 2.0 SDK by PayU significantly reduces latency and streamlines the checkout process, resulting in a 40% reduction in checkout time. Such initiatives are expected to improve the growth of the market during the forecast period. Furthermore, 3D secure payment authentication solution providers across the globe are collaborating closely with banks and financial institutions to develop innovative technologies and components which is expected to drive the growth of the market. They work together in joint research and development initiatives to create more efficient authentication solutions.
For instance, in May 2022, Entersekt, a prominent global provider of device identity and authentication solutions, unveiled the implementation of its cutting-edge EMV 3-D Secure solution by Capitec Bank. This innovative solution enhances the security of e-commerce transactions while simultaneously reducing obstacles for cardholders. The global pandemic outbreak has been favorable to market growth. The lockdown and stringent regulations for social distancing boomed e-commerce and online shopping during the pandemic, which eventually led to the increased use of cards not present and other online payment methods. The surge in online card-not-present (CNP) frauds during the pandemic led to an increased demand for 3D secure payment authentication among e-commerce and other merchants, aiming to mitigate fraudulent activities.
3D Secure Payment Authentication Market Report Highlights
- The merchant plug-in segment dominated the market in 2022 due to its capability to facilitate 3D secure verifications, aiding in the prevention of credit card fraud
- The banks segment dominated the market in 2022 owing to the increasing collaborations & partnerships between banks and providers of 3D secure payment authentication solutions
- The North American regional market is expected to register a rapid growth rate during the forecast period
- The increasing CNP frauds across the region are expected to drive the growth of the regional market
Table of Contents
Chapter 1 Methodology and Scope
Chapter 2 Executive Summary
Chapter 3 3D Secure Payment Authentication Market Variables and Trends
Chapter 4 3D Secure Payment Authentication Market: Component Estimates & Trend Analysis
Chapter 5 3D Secure Payment Authentication Market: Application Estimates & Trend Analysis
Chapter 6 3D Secure Payment Authentication Market: Regional Estimates & Trend Analysis
Chapter 7 3D Secure Payment Authentication Market - Competitive Landscape
List of Tables
List of Figures
Companies Mentioned
- GPayments Pty Ltd.
- Broadcom Inc.
- Mastercard Incorporated
- RSA Security LLC
- Modirum
- Visa Inc.
- Bluefin Payment Systems LLC
- DECTA Limited
- American Express Company
- JCB Co., Ltd.
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 130 |
| Published | October 2023 |
| Forecast Period | 2022 - 2030 |
| Estimated Market Value ( USD | $ 1.1 Billion |
| Forecasted Market Value ( USD | $ 2.76 Billion |
| Compound Annual Growth Rate | 12.7% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
