Publication Month: Jun 2021 | Report Code: TIPRE00021739 | No. of Pages: 135 | Category: Technology, Media and Telecommunications | Status: Published
Factors such as increase in e-commerce and m-commerce sales across the world pertaining to rise in the sales of smartphones and internet penetration is driving the growth of 3D Secure Authentication market. With growth in online shopping portals and availability of online payment methods, there is a significant rise in online frauds. This factor is driving the adoption of 3D authentication technology. Moreover, emergence of 3D secure 2.0 and high prospects in Asian economies are further projected to provide plenty of growth opportunities to the 3D secure authentication technology providers.
Due to the COVID-19 outbreak and subsequent surge in e-commerce sales, the fraud trends have significantly increased. To curb this, payment service providers (PSPs), merchants, and banks are readily adopting 3D secure authentication framework, which, in turn is fueling the growth of the 3D secure authentication market. Besides, the emergence of COVID-19 pandemic has resulted into rise in digital transformation across banks, enabling the customers to make payments online. This factor is causing a fruitful result in online payment modes, and it will increase the penetration of authentication technology. The rising inclination toward digital solution in banking creates a great opportunity for the market to enhance and promote authentication technology at a higher rate.
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The Asian economy is witnessing an increase in adoption of 3D secure authentication technology, owing to high usage of online shopping portals. Countries such as China, India, Japan, and Singapore are adopting authentication technology within their territories. The rising demand for digital transformation in banks has led to an increase in use of 3D secure authentication in Asia. In the Asian market, introduction of real-time payments has resulted into drastic rise in payment fraud, with four in five APAC banks experiencing increase in losses, as per the results from Fico survey in January 2020. Moreover, regulatory changes and individuals aimed at facilitating adoption of open banking are also resulting into digital banking fraud. Factors mentioned above are predicted to generate lucrative growth opportunities for the adoption of 3D secure authentication technology.
Based on component, the market is segmented into solution and services. The solution segment led the 3D secure authentication market in 2020 and is expected to continue having a majority share in the market during the forecast period. In the current scenario, with continuous technological developments, online shopping is increasing, which is resulting into rise in online fraud. The ecosystem of online shopping is surrounded with fraud also; which is encouraging merchants, banks, and acquirers to invest money to offer fast, simple, and reliable online payment solutions with high level of security.
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In terms of end user, the market is segmented into banks and merchant and payment processor. The merchant and payment processor segment led the end-user segment. Merchant are the other users of 3D secure authentication solutions to mitigate the risk of online fraud. In the current scenario, all merchants have not fully transitioned from 3D Secure 1 to 3D Secure 2. Nevertheless, players like Marqeta support both 3D Secure 2 & 3D Secure 1 for Visa.
|Market Size Value in||US$ 557.9 Million in 2020|
|Market Size Value by||US$ 1,303.5 Million by 2028|
|Growth rate||CAGR of 11.4% from 2021-2028|
|No. of Pages||135|
|No. of Tables||56|
|No. of Charts & Figures||69|
|Historical data available||Yes|
|Segments covered||Component and End-User|
|Regional scope||North America, Europe, Asia Pacific, Middle East & Africa, South & Central America|
|Country scope||US, Canada, Mexico, UK, Germany, Spain, Italy, France, India, China, Japan, South Korea, Australia, UAE, Saudi Arabia, South Africa, Brazil, Argentina|
|Report coverage||Revenue forecast, company ranking, competitive landscape, growth factors, and trends|
|Free Sample Copy Available|
The players operating in the 3D secure authentication market focus on strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:
In May 2021, Netcetera and Nok Nok Labs entered a partnership to offer delegated authentication solutions to merchants and payment providers for addressing PSD2-SCA and 3DS 2.x protocols compliance.
In January 2021, Omise, a payment service provider, executed the Netcetera 3-D Secure Server for secured online payment transactions in the APAC region, making Omise one of the first PSP customers to implement EMV 3DS 2.2 protocol.
In August 2019, mSIGNIA and Signifyd partnered to create a new generation of secure payment services for PSD2 strong consumer authentication (SCA) and guarantee more payments using an analytically enhanced, EMV 3DS compliant merchant environment.
The List of Companies - 3D Secure Authentication Market