3D Secure Payment Authentication Market Consumer Behavior and Preferences

The global 3D secure payment authentication market was valued at USD 1.10 billion in 2022 and is projected to reach USD 2.76 billion by 2030, with a CAGR of 12.7% from 2023 to 2030. The growth of the market is primarily driven by the rise in Card-Not-Present (CNP) frauds worldwide and the increasing popularity of online and e-commerce shopping among consumers.

Additionally, advancements in 3D secure (3DS) payment authentication technology aimed at enhancing customer experience are contributing to market growth. As cyber threats become more sophisticated, robust authentication solutions are essential. The competitive landscape is intensifying due to technological innovations attracting consumers to digital solutions.

A key trend in this rapidly evolving market is the integration of advanced technologies like Machine Learning (ML) and Artificial Intelligence (AI). These technologies enhance the security of online transactions by continuously monitoring and analyzing user behavior and transaction data in real time. 3D secure solutions that incorporate AI and ML can adapt to changing fraud tactics, quickly identifying anomalies and potential security risks.

Key Market Trends & Insights

• North America led the market in 2022, capturing over 28.0% of global revenue. This regional growth is largely driven by the rise in Card-Not-Present (CNP) frauds. Merchants in the U.S. and Canada are increasingly implementing 3D secure payment authentication to combat these frauds.

• The Asia Pacific region is anticipated to experience the fastest growth during the forecast period. The expanding population and rising use of online shopping platforms are expected to boost the regional market. As more consumers turn to online shopping, the demand for secure payment authentication methods to prevent fraud has accelerated the adoption of 3D payment authentication solutions.

• By component, the merchant plug-in segment was the market leader in 2022, accounting for more than 39.0% of global revenue. This segment is crucial for executing 3D secure payment authentication and verifying credit and debit cards, positioning it for continued growth in the forecast period.

• In terms of application, the banks segment generated the largest revenue share, exceeding 59.0% in 2022. This growth is linked to the increasing digitalization within the banking industry. According to Bankrate, LLC, in September 2022, approximately 65.3% of the U.S. population utilized digital banking services.

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Market Size & Forecast

• 2022 Market Size: USD 1.10 Billion

• 2030 Projected Market Size: USD 2.76 Billion

• CAGR (2023-2030): 12.7%

• North America: Largest market in 2022

• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights

Market players are actively engaged in developing new products and upgrading their existing offerings. For example, in June 2023, GPayments Pty Ltd. launched the ActiveAccess Service, an access control server specifically designed for the card issuing industry. This Software-as-a-Service (SaaS) solution transforms fraud prevention, providing card issuers with improved efficiency, flexibility, and security.

Additionally, companies are pursuing strategies such as partnerships and collaborations to drive market growth. In January 2023, Bluefin Payment Systems LLC announced a partnership with Visa Inc. for network tokenization. This integration with Visa's token technology is expected to facilitate network tokenization through Bluefin's PayConex payment gateway and ShieldConex data security platform.

Key Players

• GPayments Pty Ltd.

• Broadcom Inc.

• Mastercard Incorporated

• RSA Security LLC

• Modirum

• Visa Inc.

• Bluefin Payment Systems LLC

• DECTA Limited

• American Express Company

• JCB Co., Ltd

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Conclusion

The global 3D secure payment authentication market driven by rising Card-Not-Present (CNP) frauds and increased online shopping. Technological advancements in 3D secure (3DS) authentication are enhancing customer experiences and addressing evolving cyber threats, while the integration of Machine Learning (ML) and Artificial Intelligence (AI) is strengthening transaction security. This trend allows solutions to adapt to new fraud tactics and quickly identify potential risks, making the market increasingly competitive.