Payment Security Market Analysis and Forecast by 2031

The payment security market is expected to register a CAGR of 14.1% in 2023–2031. Expansion of contactless and biometric payments and cloud-based payment security solutions for scalability, flexibility, and cost-effectiveness are likely to remain key payment security market trends.

Payment Security Market Analysis

A few of the major factors driving the payment security market include the surge in number of  cyberattacks, stringent government regulations such as GDPR and PCI DSS, and the shift towards online and mobile payments. Advancements in technologies such as AI, machine learning, and blockchain, and the booming e-commerce industry are expected to offer lucrative opportunities for market growth during the forecast period. Furthermore, the expansion of contactless and biometric payments and cloud-based payment security solutions for scalability, flexibility, and cost-effectiveness are likely to remain key payment security market trends in coming years.

Payment Security Market Overview

The payment security refers to safeguarding financial resources. Payment security refers to the systems, processes, and measures employed to protect financial transactions from unauthorized access, data breaches, and fraud. Ensuring payment security is crucial for both offline and online organizations to avoid financial losses, keep customers' trust, and adhere to industry norms and regulations. Businesses can use a variety of payment security technologies and procedures to safeguard consumer information and financial transactions. Among the most typical are encryption, tokenization, and fraud detection & prevention.

REGIONAL FRAMEWORK

Payment Security Market Drivers and Opportunities                         

Increasing Number Of Cyber Threats to Favor Market

The rise in cyber threats is fueling the growth of the payment security market as businesses prioritize protecting sensitive financial data. According to the 2021 Cyber Threat Intelligence Index by IBM Security, there was a 6% increase in cyberattacks globally compared to the previous year, highlighting the escalating threat landscape. These threats include data breaches, ransomware attacks, and phishing scams, which pose significant risks to businesses and consumers alike. With the proliferation of digital transactions, the need for robust payment security measures has never been greater. Moreover, according to the 2022 Payments Fraud and Control Report by J.P. Morgan, 71% of businesses reported that they were targeted by payment fraud in 2021. And payment fraud in the US cost ~ US$ 9.44 million. Businesses are investing in advanced payment security solutions to safeguard against cyber threats and prevent financial losses. These solutions encompass technologies such as encryption, tokenization, and fraud detection systems to protect payment data and ensure secure transactions. Thus, the increasing number of cyber threats drives the payment security market growth.

Growing E-commerce Sector- An Opportunity in the Payment Security Market

The booming e-commerce sector presents a significant opportunity for the growth of the payment security market. With the continuous expansion of online shopping, consumers are increasingly relying on digital payment methods to make purchases. As more businesses venture into e-commerce, the need to secure online transactions becomes paramount. Payment security solutions play a crucial role in building trust and confidence among online shoppers by safeguarding their sensitive financial information from cyber threats such as data breaches and fraud. To capitalize on the growing e-commerce market, businesses need to invest in advanced payment security technologies such as encryption, tokenization, and multi-factor authentication. Thus, the booming e-commerce sector is anticipated to offer opportunities for the payment security market growth during the forecast period.

Payment Security Market Report Segmentation Analysis

Key segments that contributed to the derivation of the payment security market analysis are the solution, organization size, and application.

• Based on the solution, the payment security market is bifurcated into encryption, tokenization, and fraud detection & prevention. The fraud detection & prevention segment held a larger market share in 2023.
• Based on organization size, the payment security market is bifurcated into small & medium enterprises (SMEs) and large enterprises. The large enterprises segment dominated the market in 2023.
• Based on application, the payment security market is segmented into retail & e-commerce, travel & hospitality, healthcare, telecom & IT, education, media & entertainment, and others.

Payment Security Market Share Analysis by Geography

• The payment security market is segmented into five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the market in 2023, followed by Europe, and APAC, respectively.
• The payment security market in North America has experienced substantial growth. With the region being a hub for technology innovation and home to many major financial institutions, there's an increasing focus on protecting financial transactions. Businesses across various sectors, from retail to finance, are prioritizing payment security to safeguard against cyber threats and ensure compliance with regulatory standards like PCI DSS. Moreover, the increasing adoption of digital payment methods, coupled with the rise in e-commerce transactions, has further fueled the demand for robust payment security solutions in North America.

MARKET PLAYERS

Payment Security Market Report Scope

Payment Security Market News and Recent Developments

The payment security market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the payment security market:

• In April 2024, Cognizant and FICO announced plans to launch a cloud-based real-time payments fraud prevention solution for North American banks and other payment service providers. Their planned joint offering would help banks and other payment service providers protect their customers from fraud at a time when instant payments are gaining popularity,

(Source: Cognizant, Press Release)

• In August 2023, Mastercard announced the launch ALT ID solution for enhanced online payment security. ALT ID is a custom-made capability developed by Mastercard to create an alternate identifier for the real card numbers provided by cardholders during guest checkout transactions on e-commerce platforms.

(Source: Mastercard, Press Release)

Payment Security Market Report Coverage and Deliverables

The "Payment Security Market Size and Forecast (2022–2031)" provides a detailed analysis of the market covering the areas mentioned below:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST/Porter's Five Forces and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles

Payment Security Report Scope