3D Secure Pay Authentication Market

Market Overview:

The global 3D secure pay authentication market size reached US$ 1.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 3.0 Billion by 2032, exhibiting a growth rate (CAGR) of 11.3% during 2024-2032. The growing digital transformation of businesses, increasing e-commerce businesses, and the rising adoption of sophisticated methods by hackers to steal confidential information and credit or debit card details are some of the major factors propelling the market.

3D secure pay authentication acts as an extra layer of protection while making online transactions through credit or debit card. It requires enterprises to complete an extra verification step with the card issuer while paying online. It acts as secure system for the retailer and its customers and enhances security measures for shoppers and vendors. It ensures that payments are made by the rightful card owners via a password or personal identification number (PIN). It also reduces chargebacks and liabilities for retailers by shifting them to the acquiring banks.

At present, the increasing demand for 3D secure pay authentication, as it is effective and reliable in preventing fraudulent activities associated with online transactions, is propelling the growth of the market. Besides this, the growing digital transformation of businesses to enhance their productivity and improve customer experience is offering a favorable market outlook. In addition, the rising adoption of sophisticated methods by hackers to steal confidential information and details of credit or debit cards is contributing to the growth of the market. Apart from this, the increasing occurrence of phishing activities around the world is supporting the growth of the market. Additionally, the rising number of businesses operating and selling products and services online is bolstering the growth of the market. Moreover, the increasing utilization of smartphones to access the internet and connect with other individuals is strengthening the growth of the market.

3D Secure Pay Authentication Market Trends/Drivers:

Rising prevalence of payment frauds is positively influencing the sales of 3D secure pay authentication

Payment frauds occur when a hacker or a third party steals the payment information or credit or debit card details and uses it to make unauthorized transactions or purchases. It also includes identity theft, business email compromise, payment interception, passcode hacking, refund fraud, and various other illegal activities. At present, the rising tendency to pay online for services and goods is contributing to the increasing number of payment frauds. Hence, to prevent these frauds, online businesses and financial institutions are financing 3D secure pay authentication to get real-time updates and card authentication solutions. Furthermore, 3D secure pay authentication prevents illegal transactions effectively and secures the information of clients by incorporating an extra layer of security into the transaction process.

Increasing preference for making cashless transactions are catalyzing the demand for 3D secure pay authentication

In current-day scenarios, consumers are shifting towards cashless transactions rather than paying in cash. These transactions are convenient and effortless and enable individuals to make payments from anywhere and at any time via payment gateway websites and applications. Cashless transactions also provide cashback offers wherein payers get a certain amount of commission for making the transaction, which further encourages individuals to make online payments.

Rising number of hotels, restaurants, and physical stores accepting online payment from customers augmenting market growth

At present, cafes, restaurants, and various other merchants are adopting new technologies, such as computerized table service and app-based ordering, to enhance customer experience. Apart from this, mobile platforms are available to make ordering easier for customers with a wide variety of payment options. Besides this, the majority of hotels, homestays, and resorts are accepting online payments for their room reservations and other services, which is further increasing the occurrence of fraudulent activities associated with cashless payments. Therefore, hotels, restaurants, and physical stores are investing in 3D secure pay authentication to enhance and improve the security of online payments.

3D Secure Pay Authentication Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global 3D secure pay authentication market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on type and application.

Breakup by Type:

• Access Control Server
• Merchant Plug-In
• Others
   

Merchant plug-in represents the most popular type of 3D secure pay authentication

The report has provided a detailed breakup and analysis of the 3D secure pay authentication market based on the type. This includes an access control server, merchant plug-in, and others. According to the report, merchant plug-in represented the largest segment. A merchant plug-in is a software component designed to conduct verification of payment cards and prevent card fraud. It enables the merchant to identify the card number of the issuer and determine whether it is enrolled in a 3D secure procedure. It also provides proven real-time card authentication solutions and multi-platform support. Furthermore, it presents seamless integration with the payment gateway and maintains transaction integrity.

An access control server is a software module that allows cardholders to confirm their identity via a personally defined password, serving as an extra layer of security for online card transactions. It is one of the integral parts of the issue domain or banks and is required to be maintained by each card issuer. It is employed by issuing banks and financial institutions to conduct their cardholder authentication requirements.

Breakup by Application:

• Merchant and Payment Processors
• Banks
   

Banks hold the largest market share

The report has provided a detailed breakup and analysis of the 3D secure pay authentication market based on the application. This includes merchant and payment processors and banks. According to the report, banks represented the largest segment. Banks invest in 3D secure pay authentication, as it enables them to maintain customer behavioral history, transaction history of customers, information about the device of a customer, and the cost of the transaction. Banks direct their customers to an authentication page on their website and allow them to enter a password related to the card or a code sent to the phone of the customer to ensure the security of the cardholder.

Merchant and payment processors utilize 3D secure pay authentication to detect the occurrence of fraudulent transactions. They also employ 3D secure pay authentication to reassure their customers with an added level of security to prevent stealing of their card details or online usage without their permission. In addition, 3D secure pay authentication minimizes chargebacks and increases online business and cardholder confidence.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest 3D secure pay authentication market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa.

North America held the biggest market share due to the rising occurrence of card-not-present (CNP) frauds and the availability of advanced technology in 3D secure pay authentication. Additionally, the growing number of e-commerce businesses selling goods and services online and increasing preferences for online transactions among the masses are catalyzing the demand for 3D secure pay authentication in the region.

Asia Pacific is estimated to expand further in this domain during the forecast period due to the growing digital transformation of banks and the rising shift towards making cashless transactions via online payment gateways.

Competitive Landscape:

Key players are experiencing a surge in demand for 3D secure pay authentication from banks and other financial institutions and service providers due to the rising occurrence of fraudulent activities associated with online payments. They are also implementing development strategies to improve their presence and consolidate their share of the market. Leading companies are focusing on product acquisitions and partnerships with other firms to expand their business operations and connect with a greater number of customers globally. They are also helping other organizations in speeding digital transformation and enhancing consumer and employee experiences while strengthening security via analytics, outsourcing and sales, and automation.

The report has provided a comprehensive analysis of the competitive landscape in the global 3D secure pay authentication market. Detailed profiles of all major companies have also been provided. Some of the key players in the global 3D secure pay authentication market include:

• American Express Company
• AsiaPay Limited
• Bluefin Payment Systems LLC
• Broadcom Inc.
• Decta Limited
• Entersekt
• GPayments Pty Ltd.
• Mastercard Incorporated
• Modirum
• Visa Inc.

Recent Developments:

• In June 2023, American Express Company and Plaid announced a customer-permissioned data-sharing agreement to strengthen digital finance options for customers.
• In April 2023, Visa Inc. announced its partnership with PayPal and Venmo to launch Visa+, an innovative service that allows individuals to move money spontaneously and safely between different person-to-person (P2P) digital payment apps.
• In May 2023, Mastercard Incorporated partnered with HealthLock to protect consumers from various healthcare frauds, overcharges, and billing errors.
   

3D Secure Pay Authentication Market Report Scope:

Key Questions Answered in This Report:

• How has the global 3D secure pay authentication market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global 3D secure pay authentication market?
• What is the impact of each driver, restraint, and opportunity on the global 3D secure pay authentication market?
• What are the key regional markets?
• Which countries represent the most attractive 3D secure pay authentication market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the 3D secure pay authentication market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the 3D secure pay authentication market?
• What is the competitive structure of the global 3D secure pay authentication market?
• Who are the key players/companies in the global 3D secure pay authentication market?

Key Benefits for Stakeholders

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the 3D secure pay authentication market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global 3D secure pay authentication market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the 3D secure pay authentication industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.