What are the Historical Developments and Current Growth Metrics of the Payment Security Market?
The payment security market has seen considerable growth due to a variety of factors.
• The size of the payment security market has experienced swift expansion in the last few years. The market is projected to increase from a worth of $30.87 billion in 2024 to $34.98 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 13.3%.
This growth during the historical period can be linked to the emergence of e-commerce, a surge in digital transactions, the global reach of financial transactions, incidents of data breaches, and a rise in consumer awareness and expectations.
What Does Future Hold for The Payment Security Market Size?
The payment security market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for payment security is projected to witness a significant expansion in the upcoming years. The estimated growth rate is about 17.8% compound annual growth rate (CAGR), reaching a valuation of $67.32 billion by 2029.
Factors contributing to this projected rise in the forecast period consist of the introduction of contactless payments, blockchain and cryptocurrency security enhancement, biometric authentication integration, regulatory improvements, and ongoing evolution of cyberspace threats. The major trends expected within the forecast period encompass escalating cyberspace threats, globalization and international transactions, mobile and contactless payments, consumer awareness, and fraud prevention.
What Are The Key Drivers Fueling Growth In The Payment Security Market?
The growth of the payment security market is anticipated to be driven by the rising acceptance of digital modes of payment. Digital payments present a swift, secure, and easy means of purchasing products and services. Customers' trust and worries about fraud and security in digital payments are critical for the future utilization of digital payment cards. Payment security methods are designed to alleviate these issues. The rising use of digital payment modes will generate substantial demand for payment security solutions, which are crucial for secure transactions. For example, the European Central Bank reported in January 2024 that the number of contactless card payments in the first half of 2023 grew by 24.3% from 20.9 billion in the first half of 2022, and the overall value correspondingly increased by 25.9% to €0.5 trillion (545.27 billion). Therefore, the widening adoption of digital payment methods is poised to stimulate the growth of the payment security market.
What Are The Principal Market Segments In The Global Payment Security Industry?
The payment security market covered in this report is segmented –
1) By Solution: Encryption, Tokenization, Fraud Detection And Prevention
2) By Services: Integration Services, Support Services, Consulting Services
3) By Organization Size: Large Enterprises, Small And Medium-Sized Enterprises (SMEs)
4) By Vertical: Retail, Travel And Hospitality, Healthcare, IT And Telecom, Education, Media And Entertainment, Others (Automotive, Financial Services, And Manufacturing)
Subsegments:
1) By Encryption: Data Encryption, End-To-End Encryption (E2EE), Point-To-Point Encryption, Secure Socket Layer (SSL) Encryption
2) By Tokenization: Payment Tokenization, Mobile Tokenization, Cloud-Based Tokenization, Tokenization Of Sensitive Data
3) By Fraud Detection And Prevention: Transaction Monitoring Solutions, Machine Learning-Based Fraud Detection, Multi-Factor Authentication (MFA), Risk Scoring Systems
Pre-Book The Payment Security Global Market Report 2025 Report For Swift Delivery And Comprehensive Insights:
Which Emerging Market Trends Are Altering The Payment Security Sector?
A key trend gaining momentum in the payment security market is technological advancement. The Three-Domain Secure 2.0 (also known as 3-D Secure 2.0 or 3DS 2.0) is a novel development in digital transaction safety technology. With the surging adoption of digital payments, technology is evolving to safeguard operations on digital payment platforms. As an added layer of fraud protection for online transactions executed via credit or debit cards, 3-D Secure 2.0 is pivotal. By leveraging a wealth of contextual data, it identifies and prevents fraudulent activity. It forms an authentication pathway linking online merchants, payment networks, and financial institutions, facilitating easier sharing and analysis of purchase authenticity intelligence among them. Key players are concentrating on delivering 3-D Secure 2.0 payment security to their customers to solidify their market footprint and enhance their offerings. For instance, in February 2023, India's leading online payments solution provider, PayU, introduced its 3D Secure 2.0 SDK authentication service. This upgrade enriches PayU's tokenization abilities and bolsters online payment security for merchants and customers alike. Providing a unique identifier for each card, the 3DS 2.0 SDK authentication service boasts higher security than storing the actual card number. Moreover, it allows merchants to safely handle card numbers with minimal development effort while refining the payment experience for their consumers.
Who Are the Key Players in the Payment Security Market?
Major companies operating in the payment security market include:
• CyberSource Corporation
• Elavon Inc.
• Bluefin Payment Systems LLC.
• Ingenico Group.
• SISA Information Security Pvt Ltd.
• Mastercard Inc.
• Experian plc.
• Eastnets
• Interkassa
• Adyen N. V.
• Stripe India Private Ltd.
• PayPal Holdings Inc.
• Square Inc.
• Worldpay Inc.
• Braintree
• Authorize. Net LLC.
• BlueSnap Inc.
• Fiserv Inc.
• ACI Worldwide Inc.
• Verifone Systems Inc.
• First Data Corporation
• Global Payments Inc.
• Total System Services Inc.
• PayU
• Paysafe Group Limited
• Thales Group
• Entrust Datacard Corporation
What are the Regional Insights into the Payment Security Market?
North America was the largest region in the payment security market in 2024. The regions covered in the payment security market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
