; 3D Secure Pay Authentication Market size, share, trend 2034.

3D Secure Pay Authentication Market

3D Secure Pay Authentication Market Size, Share, and Analysis, By Type (Merchant Plug-in, Access Control Server), By Application (Merchants & Payment Gateway and Banks), and By Region (North America, Europe, Asia-Pacific, And Rest of the World) And Regional Forecast 2024-2034

Published on: Jan-2024
Report Code: FG ICT 01815
No. of Pages: 170-350
Report Format: PDF

3D Secure Pay Authentication Market is anticipated to exhibit a Compound Annual Growth Rate (CAGR) of 12.9% during the forecast span from 2024 to 2034. In 2023, the market size was assessed at USD 1.2 billion and is projected to reach USD 4.7 billion by the completion of 2034.

Product Overview

3D Secure Pay Authentication is an online payment security approach that provides an additional layer of protection to credit and debit card transactions. Its main objective is to reduce the risk of unauthorized card usage by verifying the owner's identity during online purchases. The method offers a distinct verification process for every purchase by asking the user to provide a password or a one-time code given to their mobile device when a transaction takes place. This verification phase aims to validate the cardholder's identity, significantly limiting the possibility of fraudulent transactions. Furthermore, 3D Secure Pay Authentication, used by major card networks such as Visa and Mastercard, is designed to enhance security measures without significantly disrupting the user experience. Hence, this approach benefits customers by improving transaction security, while simultaneously aiding merchants and financial institutions in limiting fraudulent transactions.

Source: Fatpos Global

Market Highlights

3D Secure Pay Authentication Market is projected to grow at a compound annual growth rate (CAGR) of 12.9% from 2024 to 2034

3D Secure Pay Authentication Market is projected to achieve USD 4.7 billion during the forecast period due to escalating concerns regarding online transaction security. This growth is driven by the increasing digitization of payment systems and the increasing frequency of online fraud, which encourage businesses to seek powerful and reliable solutions for securing online transactions. The need for stable transaction methods is a result of increasing use of e-commerce and regulatory requirements that stress upon the importance of secure payment procedures. Additionally, technological improvements in biometric authentication and machine learning for fraud detection are increasing the growth potential of the market. Moreover, partnerships among financial institutions, card networks, and technology providers are promoting innovation in this sector. Therefore, these collaborations are responsible for the developments in 3D Secure authentication, which have expanded its application beyond conventional card-based transactions to include digital wallets and innovative payment methods.

Source: Fatpos Global

3D Secure Pay Authentication Market Segmentation

Merchant Plug-in segment will expand in popularity due to its versatility and ease of integration

Based on Type, 3D Secure Pay Authentication Market is segmented into Merchant Plug-in and Access Control Server. The merchant plugins segment is  dominating the market owing to their adaptability and ease of integration across diverse e-commerce platforms. These plugins include pre-designed solutions that eliminate the need for substantial technical knowledge or complex coding tasks, making it easier to integrate payment security essentials like 3D Secure authentication. Furthermore, merchant plugins frequently provide customizable options, allowing businesses to modify payment activities to their specific needs. Therefore, due to their prompt assistance and regular updates, merchant plugins are the preferred choice for companies which are seeking effective, safe, and easy to use payment solutions in the constantly evolving space of online transactions.

Bank segment is projected to expand due to their relevance in securing financial transactions

By Application, the 3D Secure Pay Authentication Market is divided into Merchants & Payment Gateway and Banks. The bank segment is expected to lead the market due to their important role in securing financial transactions. Banks have direct interface with payment networks and financial systems, which allows for smooth implementation of authentication solutions. These institutions prioritize risk management by using extensive measures such as 3D Secure Pay Authentication to protect the accounts and funds of consumer. Furthermore, due to the volume of daily transactions, banks hold considerable power over the market size and acceptance rate of 3D Secure authentication. Therefore, banks act as a catalyst for the development and implementation of secure transaction technologies due to their credibility for ensuring financial security.

Source: Fatpos Global

Market Dynamics

Growth Drivers

Increased E-commerce Transactions Will Create New Growth Opportunities

Increasing prevalence of e-commerce transactions are contributing to the growth of 3D Secure Pay Authentication market. The continuous rise of online shopping platforms has encouraged the adoption of digital payment solutions. This surge highlights the crucial need for security measures to safeguard sensitive financial information. Furthermore, as consumers increasingly depend on online platforms for transactions, companies are simultaneously seeking safe payment methods to establish trust and ensure transaction integrity. Therefore, there is an increasing demand for 3D Secure authentication solutions as it meets the evolving needs of consumer and generate trust in online transaction activities.

Strict Regulatory Compliance Will Open Up New Growth Prospects

Global regulatory bodies emphasize the significance of strict security protocols in virtual transactions, which drives the expansion of 3D Secure Pay Authentication market. There is a persistent need to protect consumer data during online transactions, as outlined in various governmental regulations like the General Data Protection Regulation and Payment Card Industry Data Security Standards. Therefore, global companies operating in this sphere must adhere to these requirements, promoting the utilization of strong authentication solutions such as 3D Secure Pay Authentication. The legal environment forces firms to prioritize secure payment procedures, which further leads to the extensive integration of authentication methods. Therefore, these factors ensures compliance with legislation and encourage the trust of consumers on established security protocols which ultimately fuels the growth of 3D Secure Pay Authentication market.

Restraints

Managing User Experience and Security Could Restrict Market Growth

The delicate equilibrium between security measures and user experience is a major restraint facing the 3D Secure Pay Authentication market. Security measures are crucial to combat online fraud but complex authentication procedures can cause inconvenience to user. The challenge lies in creating authentication solutions that uphold high security standards while ensuring seamless transactions and user satisfaction. This balance is essential as complicated authentication steps create frustration among users, which potentially leads to transactions losses or unsatisfied customers. Therefore, addressing this challenge requires innovative authentication methods which provides security and a smooth user experience, which facilitates the adoption of 3D Secure Pay Authentication.

Recent Developments

  • February 2023 marked the release of the 3D Secure 2.0 SDK by PayU, an India-based online payments solution provider. This SDK offers a complete native checkout experience, enhancing customer interactions during card transactions. PayU collaborated with Wibmo, a global PayTech company under PayU, to develop this EMVCo-certified solution.
  • In November 2022, Network International, in partnership with Mastercard, introduced a new 3D Secure authentication system. This collaboration enabled merchants in the UAE to utilize the N-Genius online payment gateway and leverage Mastercard's Smart Interface for authentication.
  • During the same month, Bank Negara Indonesia (BNI) and UnionPay International (UPI) formed a collaborative agreement. This initiative allowed all BNI merchant customers to access the UnionPay Mobile QuickPass service, enabling acceptance of UnionPay card payments. This collaboration aims to expand UnionPay's network in Indonesia, offering convenient digital payment services to consumers and merchants.
  • Also in November 2022, JCB Co., Ltd., partnered with Nuvei to facilitate global JCB payment acceptance. This collaboration enhanced the online payment experience for JCB cardholders and increased the value of Nuvei's extensive merchant network. Nuvei's objective is to implement J/Secure™ 2.0, JCB's cardmember authentication program, to bolster security and combat fraudulent activities.
  • Finally, in March 2022, AsiaPay Technology announced the availability of Xecure3D, a 3D secure solution compatible with EMV 3-D Secure 2.0. This solution significantly enhances security for Visa payments, ensuring heightened protection for cardholders during transactions.

3D Secure Pay Authentication Market

Key Players:

  • Visa Inc.
  • Mastercard Incorporated
  • American Express Company
  • PayPal Holdings, Inc.
  • Stripe Inc.
  • Apple Inc. (Apple Pay)
  • Square, Inc.
  • Google LLC (Google Pay)
  • Fiserv, Inc.
  • Amazon.com, Inc. (Amazon Pay)
  • Microsoft Corporation (Microsoft Payment Solutions)
  • Adyen N.V.
  • CyberSource Corporation
  • RSA Security LLC
  • VeriFone Systems, Inc.
  • Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

3D Secure Pay Authentication Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. North America is expected to dominate the 3D Secure Pay Authentication market as the region hosts the world's largest e-commerce sector. Additionally, the payment ecosystem in the region is driven by credit and debit cards owing to which, the region offers significant opportunities for the integration of secure payment solutions like 3D Secure Pay Authentication. Furthermore, major international card networks, including Mastercard, Visa, Discover, American Express, and Diners Club, are headquartered in the united states, which encourages high adoption rate of 3D Secure authentication due to the well-established payment infrastructure in the region.

Source: Fatpos Global

Impact of Covid-19 on 3D Secure Pay Authentication Market

COVID-19 pandemic resulted in a sharp increase in online transactions as restrictions and lockdowns limited physical activities. This rapid shift highlighted the importance of stronger security measures in digital payments. The surge in digital sales also increased the risk of cyber threats like phishing and online fraud targeting payment systems. This emphasized the important role of authentication solutions in restricting unauthorized transactions. Additionally, regulatory bodies quickly adapted to address these evolving security concerns and advised businesses to brace their security protocols. Furthermore, the change in consumer behavior towards online shopping highlighted the significance of secure and user-friendly payment experiences. This drove the adoption and integration of authentication solutions ensuring secure digital transactions during the pandemic.

3D Secure Pay Authentication Market is further segmented by region into:

  • North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
  • Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil, and Rest of Latin America
  • Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey, and Rest of Europe
  • Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia, and Rest of APAC
  • Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa, and Rest of MENA

3D Secure Pay Authentication Market Scope and Segments:

ATTRIBUTE

  DETAILS

Study Period

2018-2034

Base Year

2023

Forecast Period

2024-2034

Historical Period

2019-2022

Growth Rate

CAGR of 12.9% from 2024-2034

Unit

Value (USD Billion)

Segmentation

Main Segments List

By Type

  • Merchant Plug-in
  • Access Control Server

By Application

  • Merchants & Payment Gateway
  • Banks

By Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • Australia
    • Southeast Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • South Africa
    • Rest of Middle East & Africa

Frequently Asked Questions (FAQ):

3D Secure Pay Authentication Market size was values at USD 1.2 billion in 2023 and is projected to reach the value of USD 4.7 billion in 2034, exhibiting a CAGR of 12.9% during the forecast period.

The 3D Secure Pay Authentication Market involves secure online payment authentication solutions that verify cardholders during transactions, reducing the risk of fraud.

The Merchant Plug-in segment and the Bank segment accounted for the largest 3D Secure Pay Authentication Market share.

Key players in the 3D Secure Pay Authentication Market include Visa Inc., Mastercard Incorporated, American Express Company, PayPal Holdings, Inc., Apple Inc. (Apple Pay), Google LLC (Google Pay), Amazon.com, Inc. (Amazon Pay), Microsoft Corporation (Microsoft Payment Solutions), Stripe Inc., Square, Inc., Fiserv, Inc., Adyen N.V., CyberSource Corporation, RSA Security LLC , VeriFone Systems, Inc.., and Other Prominent Players.

Increased e-commerce transactions and strict regulatory compliance are the factors driving the 3d secure pay authentication market.

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