Global 3D Secure Pay Authentication Market Overview
3D Secure Pay Authentication Market Size Was Valued at USD 815.39 Million in 2023 and is Projected to Reach USD 2286.71 Million by 2032, Growing at a CAGR of 12.14% From 2024-2032
3D Secure (3DS) is a verification method that boosts the security of online credit card purchases by asking customers to confirm their identity with the card issuer while making a payment. The added authentication layer greatly decreases the chances of fraudulent behavior.
- For retailers, 3D Secure provides various advantages. First and foremost, it offers a liability shift. If a chargeback occurs, usually the responsibility lies with the merchant. Nonetheless, if the 3D Secure protocol is adhered to properly, the issuing bank will take on this responsibility. Merchants must thoroughly examine all documents provided by their issuer to grasp the implementation guidelines and regulations fully.
- Additionally, 3DS protects against chargebacks. Transactions authenticated through Verified by Visa provide merchants with protection from chargebacks, safeguarding them against friendly fraud or chargeback fraud. It is essential to mention that MasterCard does not provide a comparable assurance, hence merchants need to recognize the distinctions among card networks.
- Another benefit is the possibility of exchanging advantages. Merchants could benefit from reduced interchange fees and extended payment terms from their acquirer by utilizing 3D Secure, leading to savings on costs and better management of cash flow.
- Finally, 3D Secure boosts customer trust. Building trust with customers is crucial for Card-Not-Present (CNP) merchants. The extra protection from 3DS gives customers peace of mind that their information is safe, which could make them more likely to finish purchases and drive up total sales. 3D Secure is a useful tool for merchants aiming to prevent fraud, lower liability, and establish customer confidence.
Market Dynamics And Factors For 3D Secure Pay Authentication Market
Drivers:
- New Technology And Robust Regulations Are Expected To Push The Market Growth
New technology, such as automated table service and app-based ordering, have been quickly adopted by hotels and restaurants. Customers now have access to a myriad of mobile platforms that make purchasing and paying easier, with several payment options. For things like room reservations and other services, most hotels, resorts, and tourism centers now allow online transactions and payments. Online fraud can happen throughout a reservation transaction. Online payments are commonly performed through online travel agencies (OTAs), online booking engines, and/or directly on the hotel's website. Hotels are more exposed to online payment frauds and malevolent activities when they allow card-present transactions through their property management system, as well as when they make and receive payments online. With the implementation of the PSD2 standard, hoteliers and restaurants will be required to use forced authentication, also known as Strong Customer Authentication (SCA), which requires two-factor authentication (2FA) to be exact and secure while conducting online transactions. The cashless payment system is expanding at an exponential rate, thanks to evolving payment methods, rising e-commerce use, enhanced internet connectivity, and the introduction of new technology. According to Razorpay, digital payment transactions will grow by 76% in 2020. India's digital payments business is estimated to reach USD 700 billion by 2022, according to the Reserve Bank of India.
Restraints:
Over the last few decades, several governments and nationalized banks have established high- and low-value payment systems based on security requirements and proprietary communication. As payment systems become more autonomous, there is a higher requirement for standardization and automation across intra-bank and inter-bank networks between countries. This is predicted to limit the use of 3D secure services, and it usually involves the gathering and correction of human data. Intra-bank transactions enable multinational corporations and banks with subsidiaries and branches to transfer funds to countries where they are needed. Beneficiaries are credited to their foreign operation accounts instantly, or payments are sent to their banks via national clearing and settlement processes or bilateral transfers. As a result, the availability of alternatives is likely to stymie the uptake of 3D secure pay authentication systems.
Opportunities:
The improved 3D Secure protocol, 3DS 2.0, will have a big impact on the payments industry, including the ability to cast a wider net in fraud prevention. There are now more channels where the protocol can be implemented for secure transactions, including non-browser-based platforms and mobile integration. Non-payment authentication is one of the aspects that will be introduced with 3DS 2.0 that allows the protocol to be used in more than just traditional browser-based payments. According to a survey conducted by Mastercard, digital wallets were mentioned in some form or another in 75% of all monitored social media conversations. According to a poll done by Points, nearly 100% of users would use a mobile wallet more frequently if it included a loyalty program. This is where the 3DS 2.0's extra features come into play. It enables the authentication procedure to take place on the merchant's mobile app, adding an extra degree of security when the customer submits their card information on the platform for later usage.
Challenges:
The most difficult aspect of 3DS2 has been knowledge transfer. The merchants and consumers, in particular, were not sufficiently informed about the necessary modifications. Merchants and banks have until the end of 2020 to comply with 3DS2 or face fines. It's worth noting that, aside from information exchange, the banks were also unprepared for the introduction of 3DS2. Many big banks initially failed transactions because they did not support the 3DS version 2 flow, which Visa and Mastercard required. The larger banks were eventually able to deliver a satisfactory implementation of 3DS2 via their app or website, but the lesser banks were unable to keep up. This scenario even stretched to whole countries, as some mandated 3DS2 while others did not. As a result, it became increasingly difficult for merchants, particularly worldwide merchants, to keep up with local compliance and implementation of 3DS2.
Segmentation Analysis of 3D Secure Pay Authentication Market
By Type, the Merchant plug-in is dominating in the 3D Secure Pay Authentication Market. The merchant plug-in (MPI) is one of the most significant aspects of the online card payment system, as it conducts 3D secure pay authentication and verification of debit and credit cards. It's a server-side software module that allows the merchant to identify the issuer card's account number and see if it's registered in the 3D-secure procedure. For example, GPayments Pty Ltd offers ActiveMerchant, Worldline offers Plugins, and Worldpay offers MOLPay, Redsys, and Iyzico. MPI assists in cardholder verification with the issuing bank, resulting in a higher success rate for online transactions. The market for 3D secure pay authentication is dominated by access control servers (ACS). Each card issuer is obligated to maintain ACS, which is an inherent element of the issuer domain/banks.
By Application, Merchants and Payment processors are the dominating in the 3D Secure Pay Authentication Market. In the event of a fraudulent transaction, 3D secure pay authentication protects merchants from chargebacks. Accepting credit cards in Europe requires 3D security, which is presently optional in other locations. It assists merchants and payment processors in reducing fraud and chargebacks, as well as increasing online commerce and cardholder trust. Similarly, 3D secure pay authentication allows banks to take into account elements such as a customer's transaction history, behavioral history, transaction cost, and device information.
Regional Analysis of 3D Secure Pay Authentication Market
North America is dominating the 3D Secure Pay Authentication Market. North America is the potent region for fintech companies due to favored government policies, tax relaxations, and market competitiveness making it an ideal location for fintech companies to invest and introduced new products before the global launch. Also, In North America is the hub for fintech and payment companies such as Visa, Mastercard, America Express, Fiserv. These companies have the upper hand in the regional market. Two-factor authentication also improves security and complies with the new Payment Service Directives (PSD2) standard, which takes effect on September 14, 2019. As international organizations in the United States conduct business with European clients, 3DS2 adoption is projected to expand as they see success in Europe.
Europe region is the fastest-growing region in the 3D Secure Pay Authentication Market. The growth in the region is attributed to the legislation and robust regulatory framework applied in all European Union countries which gives protection for merchants as well as a customer from any misconduct from both ends. Strong Customer Authentication (SCA) imposed in Europe is a part of the revised Payment service directive (PSD2) regulation with the additional mandate of extra authentication measures. The United Kingdom is now the only European country that offers Address Verification Service (AVS) and 3D secure pay authentication. It is one of the only places in the world where providing three-dimensional secure payment authentication has improved total transactions. The United Kingdom has a developed internet shopping business, with most users opting for bank-linked card payments when purchasing goods. The acceptance rate of 3D security is high in nations like Finland, Sweden, Denmark, and Norway (between 83-86 percent acceptance). In terms of payment options, Germany is regarded as one of the most fragmented markets. The bulk of online transactions is made using non-credit card payment options including SOFORT, SEPA direct debit, and Giropay.
Although the Asia Pacific is recognized as a leader in several trends, such as mobile payment and ecommerce adoption, it is also one of the most fragmented areas in terms of digital payments. China is Asia Pacific's largest retail ecommerce market and a major factor behind mobile commerce. UnionPay, Alipay, and WeChat Pay are the most popular payment methods in the nation. Credit and debit cards are the most popular payment methods in nations like Australia, Singapore, and South Korea.
Players Covered in 3D Secure Pay Authentication Market are:
- Visa Inc. (USA)
- Mastercard Incorporated (USA)
- The American Express Company (USA)
- ENTERSEKT (South Africa)
- Broadcom Inc. (USA)
- Medium (Estonia)
- SIA SpA (Italy)
- Fiserv Inc. (USA)
- Cardknox Development Inc. (the USA)
- Marqeta Inc. (the USA)
- Gemalto (Netherlands)
- Adyen (Netherlands)
- Nets Group (Denmark)
- Worldline (France)
- Cybersource (USA)
- Discover Financial Services (USA) and other major players.
Key Industry Developments In 3D Secure Pay Authentication Market:
- In April 2023, Visa announced it is partnering with PayPal and Venmo to pilot Visa+, an innovative service that aims to help individuals move money quickly and securely between different person-to-person (P2P) digital payment apps. Later this year, Venmo and PayPal users in the US will be able to start moving money seamlessly between the two platforms.
- In February 2023, PayU, India's leading online payments solution provider, announced the launch of 3D Secure 2.0 SDK, offering a full native checkout and superior customer experience for all card transactions. PayU merchants can provide optimized customer experience while complying with major card network upgrades - including Visa and Mastercard while gaining better security and fraud protection. PayU's lightweight 3DS 2.0 SDK provides lowered latency and a 40% reduction in checkout time.
Global 3D Secure Pay Authentication Market |
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Base Year: |
2023 |
Forecast Period: |
2024-2032 |
Historical Data: |
2016 to 2022 |
Market Size in 2023: |
USD 815.39 Mn. |
Forecast Period 2024-32 CAGR: |
12.14% |
Market Size in 2032: |
USD 2286.71 Mn. |
Segments Covered: |
By Type |
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By Application |
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By Region |
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Key Market Drivers: |
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Key Market Restraints: |
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Key Opportunities: |
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Companies Covered in the report: |
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Chapter 1: Introduction
ā1.1 Research Objectives
ā1.2 Research Methodology
ā1.3 Research Process
ā1.4 Scope and Coverage
āā1.4.1 Market Definition
āā1.4.2 Key Questions Answered
ā1.5 Market Segmentation
Chapter 2:Executive Summary
Chapter 3:Growth Opportunities By Segment
ā3.1 By Type
ā3.2 By Application
Chapter 4: Market Landscape
ā4.1 Porter's Five Forces Analysis
āā4.1.1 Bargaining Power of Supplier
āā4.1.2 Threat of New Entrants
āā4.1.3 Threat of Substitutes
āā4.1.4 Competitive Rivalry
āā4.1.5 Bargaining Power Among Buyers
ā4.2 Industry Value Chain Analysis
ā4.3 Market Dynamics
āā4.3.1 Drivers
āā4.3.2 Restraints
āā4.3.3 Opportunities
āā4.5.4 Challenges
ā4.4 Pestle Analysis
ā4.5 Technological Roadmap
ā4.6 Regulatory Landscape
ā4.7 SWOT Analysis
ā4.8 Price Trend Analysis
ā4.9 Patent Analysis
ā4.10 Analysis of the Impact of Covid-19
āā4.10.1 Impact on the Overall Market
āā4.10.2 Impact on the Supply Chain
āā4.10.3 Impact on the Key Manufacturers
āā4.10.4 Impact on the Pricing
Chapter 5: 3D Secure Pay Authentication Market by Type
ā5.1 3D Secure Pay Authentication Market Overview Snapshot and Growth Engine
ā5.2 3D Secure Pay Authentication Market Overview
ā5.3 Access Control Server
āā5.3.1 Introduction and Market Overview
āā5.3.2 Historic and Forecasted Market Size (2016-2028F)
āā5.3.3 Key Market Trends, Growth Factors and Opportunities
āā5.3.4 Access Control Server: Grographic Segmentation
ā5.4 Merchant Plug-in
āā5.4.1 Introduction and Market Overview
āā5.4.2 Historic and Forecasted Market Size (2016-2028F)
āā5.4.3 Key Market Trends, Growth Factors and Opportunities
āā5.4.4 Merchant Plug-in: Grographic Segmentation
ā5.5 Others
āā5.5.1 Introduction and Market Overview
āā5.5.2 Historic and Forecasted Market Size (2016-2028F)
āā5.5.3 Key Market Trends, Growth Factors and Opportunities
āā5.5.4 Others: Grographic Segmentation
Chapter 6: 3D Secure Pay Authentication Market by Application
ā6.1 3D Secure Pay Authentication Market Overview Snapshot and Growth Engine
ā6.2 3D Secure Pay Authentication Market Overview
ā6.3 Merchant & Payment Processors
āā6.3.1 Introduction and Market Overview
āā6.3.2 Historic and Forecasted Market Size (2016-2028F)
āā6.3.3 Key Market Trends, Growth Factors and Opportunities
āā6.3.4 Merchant & Payment Processors: Grographic Segmentation
ā6.4 Banks
āā6.4.1 Introduction and Market Overview
āā6.4.2 Historic and Forecasted Market Size (2016-2028F)
āā6.4.3 Key Market Trends, Growth Factors and Opportunities
āā6.4.4 Banks: Grographic Segmentation
Chapter 7: Company Profiles and Competitive Analysis
ā7.1 Competitive Landscape
āā7.1.1 Competitive Positioning
āā7.1.2 3D Secure Pay Authentication Sales and Market Share By Players
āā7.1.3 Industry BCG Matrix
āā7.1.4 Ansoff Matrix
āā7.1.5 3D Secure Pay Authentication Industry Concentration Ratio (CR5 and HHI)
āā7.1.6 Top 5 3D Secure Pay Authentication Players Market Share
āā7.1.7 Mergers and Acquisitions
āā7.1.8 Business Strategies By Top Players
ā7.2 VISA INC.
āā7.2.1 Company Overview
āā7.2.2 Key Executives
āā7.2.3 Company Snapshot
āā7.2.4 Operating Business Segments
āā7.2.5 Product Portfolio
āā7.2.6 Business Performance
āā7.2.7 Key Strategic Moves and Recent Developments
āā7.2.8 SWOT Analysis
ā7.3 MASTERCARD INCORPORATED
ā7.4 THE AMERICAN EXPRESS COMPANY
ā7.5 ENTERSEKT (SOUTH AFRICA)
ā7.6 BROADCOM INC.
ā7.7 MEDIUM
ā7.8 SIA SPA
ā7.9 FISERV INC.
ā7.10 CARDKNOX DEVELOPMENT INC.
ā7.11 MARQETA INC.
ā7.12 DISCOVER FINANCIAL SERVICES
ā7.13 OTHER MAJOR PLAYERS
Chapter 8: Global 3D Secure Pay Authentication Market Analysis, Insights and Forecast, 2016-2028
ā8.1 Market Overview
ā8.2 Historic and Forecasted Market Size By Type
āā8.2.1 Access Control Server
āā8.2.2 Merchant Plug-in
āā8.2.3 Others
ā8.3 Historic and Forecasted Market Size By Application
āā8.3.1 Merchant & Payment Processors
āā8.3.2 Banks
Chapter 9: North America 3D Secure Pay Authentication Market Analysis, Insights and Forecast, 2016-2028
ā9.1 Key Market Trends, Growth Factors and Opportunities
ā9.2 Impact of Covid-19
ā9.3 Key Players
ā9.4 Key Market Trends, Growth Factors and Opportunities
ā9.4 Historic and Forecasted Market Size By Type
āā9.4.1 Access Control Server
āā9.4.2 Merchant Plug-in
āā9.4.3 Others
ā9.5 Historic and Forecasted Market Size By Application
āā9.5.1 Merchant & Payment Processors
āā9.5.2 Banks
ā9.6 Historic and Forecast Market Size by Country
āā9.6.1 U.S.
āā9.6.2 Canada
āā9.6.3 Mexico
Chapter 10: Europe 3D Secure Pay Authentication Market Analysis, Insights and Forecast, 2016-2028
ā10.1 Key Market Trends, Growth Factors and Opportunities
ā10.2 Impact of Covid-19
ā10.3 Key Players
ā10.4 Key Market Trends, Growth Factors and Opportunities
ā10.4 Historic and Forecasted Market Size By Type
āā10.4.1 Access Control Server
āā10.4.2 Merchant Plug-in
āā10.4.3 Others
ā10.5 Historic and Forecasted Market Size By Application
āā10.5.1 Merchant & Payment Processors
āā10.5.2 Banks
ā10.6 Historic and Forecast Market Size by Country
āā10.6.1 Germany
āā10.6.2 U.K.
āā10.6.3 France
āā10.6.4 Italy
āā10.6.5 Russia
āā10.6.6 Spain
āā10.6.7 Rest of Europe
Chapter 11: Asia-Pacific 3D Secure Pay Authentication Market Analysis, Insights and Forecast, 2016-2028
ā11.1 Key Market Trends, Growth Factors and Opportunities
ā11.2 Impact of Covid-19
ā11.3 Key Players
ā11.4 Key Market Trends, Growth Factors and Opportunities
ā11.4 Historic and Forecasted Market Size By Type
āā11.4.1 Access Control Server
āā11.4.2 Merchant Plug-in
āā11.4.3 Others
ā11.5 Historic and Forecasted Market Size By Application
āā11.5.1 Merchant & Payment Processors
āā11.5.2 Banks
ā11.6 Historic and Forecast Market Size by Country
āā11.6.1 China
āā11.6.2 India
āā11.6.3 Japan
āā11.6.4 Singapore
āā11.6.5 Australia
āā11.6.6 New Zealand
āā11.6.7 Rest of APAC
Chapter 12: Middle East & Africa 3D Secure Pay Authentication Market Analysis, Insights and Forecast, 2016-2028
ā12.1 Key Market Trends, Growth Factors and Opportunities
ā12.2 Impact of Covid-19
ā12.3 Key Players
ā12.4 Key Market Trends, Growth Factors and Opportunities
ā12.4 Historic and Forecasted Market Size By Type
āā12.4.1 Access Control Server
āā12.4.2 Merchant Plug-in
āā12.4.3 Others
ā12.5 Historic and Forecasted Market Size By Application
āā12.5.1 Merchant & Payment Processors
āā12.5.2 Banks
ā12.6 Historic and Forecast Market Size by Country
āā12.6.1 Turkey
āā12.6.2 Saudi Arabia
āā12.6.3 Iran
āā12.6.4 UAE
āā12.6.5 Africa
āā12.6.6 Rest of MEA
Chapter 13: South America 3D Secure Pay Authentication Market Analysis, Insights and Forecast, 2016-2028
ā13.1 Key Market Trends, Growth Factors and Opportunities
ā13.2 Impact of Covid-19
ā13.3 Key Players
ā13.4 Key Market Trends, Growth Factors and Opportunities
ā13.4 Historic and Forecasted Market Size By Type
āā13.4.1 Access Control Server
āā13.4.2 Merchant Plug-in
āā13.4.3 Others
ā13.5 Historic and Forecasted Market Size By Application
āā13.5.1 Merchant & Payment Processors
āā13.5.2 Banks
ā13.6 Historic and Forecast Market Size by Country
āā13.6.1 Brazil
āā13.6.2 Argentina
āā13.6.3 Rest of SA
Chapter 14 Investment Analysis
Chapter 15 Analyst Viewpoint and Conclusion
Global 3D Secure Pay Authentication Market |
|||
Base Year: |
2023 |
Forecast Period: |
2024-2032 |
Historical Data: |
2016 to 2022 |
Market Size in 2023: |
USD 815.39 Mn. |
Forecast Period 2024-32 CAGR: |
12.14% |
Market Size in 2032: |
USD 2286.71 Mn. |
Segments Covered: |
By Type |
|
|
By Application |
|
||
By Region |
|
||
Key Market Drivers: |
|
||
Key Market Restraints: |
|
||
Key Opportunities: |
|
||
Companies Covered in the report: |
|
Frequently Asked Questions :
The forecast period in the 3D Secure Pay Authentication Market research report is 2024-2032.
Visa Inc. (USA), Mastercard Incorporated (USA), The American Express Company (USA), ENTERSEKT (South Africa), Broadcom Inc. (USA), Medium (Estonia), SIA SpA (Italy), Fiserv Inc. (USA), Cardknox Development Inc. (the USA), Marqeta Inc. (the USA), Discover Financial Services (USA), and other major players.
The 3D Secure Pay Authentication Market is segmented into Type, Application, and region. By Type, the market is categorized into Access Control Server, Merchant Plug-in, Others. By Application, the market is categorized into Merchant & Payment Processors, Banks. By region, it is analyzed across North America (U.S.; Canada; Mexico), Europe (Germany; U.K.; France; Italy; Russia; Spain, etc.), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).
3D Secure is an extra layer of security that you may enable for each online card transaction. Customers and vendors benefit from increased security.
3D Secure Pay Authentication Market Size Was Valued at USD 815.39 Million in 2023 and is Projected to Reach USD 2286.71 Million by 2032, Growing at a CAGR of 12.14% From 2024-2032