Payment Security Market By Solution (Fraud Detection & Prevention, Encryption, and Tokenization), Industry Vertical (BFSI, Government & Utilities, IT & Telecom, and Retail & E-Commerce, Media & Entertainment and Travel & Hospitality), Enterprise Size (Small & Medium, and Large), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 - 2032
Market Perspective
The global Payment Security Market was valued at approximately USD 20.24 billion in 2022 and is expected to reach USD 86.26 billion by 2032, with a projected compound annual growth rate of 15.6% from 2023 to 2032.
This growth can be attributed to several key factors, including the rapid adoption of e-commerce transactions and the increasing awareness of payment security and data security standards. Online payment platforms, which are becoming increasingly popular due to their convenience and lower transaction fees, are also driving the demand for better payment security solutions.
Moreover, the growing concerns over data thefts and fraudulent transactions are increasing the demand for robust payment security solutions. To meet this demand, key players in the market are developing several AI tools that can provide even better cyber security. These solutions are streamlining financial management processes, maintain precise records, and increase the overall efficiency of payment processes for financial institutions, service providers, and end-users.
Apart from this, the implementation of data security programs to prevent financial losses has accelerated the payment security market, and compliance programs are also helping to promote better payment security standards. With ongoing innovation and increasing demand, the payment security market is expected to continue its growth trajectory in the years to come.
Key Insights
- Based on the solution, the fraud detection & prevention segment held the largest market share
- Based on industry vertical the retail & e-commerce segment dominated the market
- Based on enterprise size, the large segment generated the highest revenue
- On the basis of region, North America accounted largest market share
Adoption of Online Payment Methods to Propel the Market Growth
The increasing preference for online payment methods among consumers has led to a surge in demand for efficient and secure online payment portals. Over the past few years, the number of mobile payment app users has skyrocketed from 400 million to over 2 billion, fueling the growth of the payment security market. However, this growth has also led to a rise in fraudulent transactions and related issues, creating a pressing need for more secure payment portals. As a result, the demand for better payment security solutions is expected to continue to drive the payment security market share.
Non-Compliance with Data Security Standards Will Challenge the Market
Non-compliance with data security standards is a significant challenge facing the growth of the payment security market. As the digital payment market expands, the number of data breaches and fraudulent transactions is also increasing, highlighting the need for effective compliance with data security standards. Failure to comply with these standards not only increases the risk of fraud and data breaches but also leads to growing concerns that hinder the market growth.
Recent Development
In January 2023: Citizens Financial Group and Mastercard declared a partnership. Mastercard will be the payments provider for Citizens Financial Group in credit, commercial and debit portfolios.
In November 2022: A new online payments platform was launched by Shift4 with the aim to support eCommerce enterprises of all sizes. This platform supports more than 20 languages, 150+ currencies and the majority types of cards.
In September 2022: Evalon Inc. partnered with Oracle Hospitality to expand its business and services in cross-border hospitality across U.S. and Canada
Segmentation Analysis
The payment security market report is segmented into different solutions, including fraud detection and prevention, encryption, and tokenization. Among these solutions, fraud detection and prevention dominate the market due to the crucial role they play in mitigating fraudulent activities. These solutions provide advanced fraud analytics, which helps reduce the number of fraudulent transactions.
The retail and e-commerce sector has emerged as the largest contributor to the global payment security market, accounting for over 20% of the segmental share in 2022. The rapid adoption of online payment portals to enhance the checkout experience and attract more consumers has been the key driver for the revenue generated by this sector. With a high volume of consumption in the retail sector, the demand for payment security solutions has grown significantly to reduce fraudulent transactions and mitigate other risk factors.
The BFSI segment is also expected to observe the fastest compound annual growth rate due to the banking and financial institutions promoting online payment options to their customers. These options offer greater convenience for customers to make transactions and cut down on the time spent in banks or other financial institutions. Payment security plays a crucial role in the BFSI segment, given the high values and volumes of transactions involved.
North America dominated the payment security market owing to increasing digital payments penetration rates
North America's dominance in the payment security market and is attributed to the widespread adoption of digital payment platforms, which grew by over 70% in 2022. The significant increase in the number of consumers preferring online payments is also a key driver of the market growth, with over 50% of consumers opting for online payments due to the robust payment security provided by the market's key players. Moreover, high competition among the key players in the region has led to increased innovation in payment security solutions, strategic partnerships with e-commerce companies, and other efforts to expand their consumer base. The United States is the leading player in the region, with Canada following closely behind.
Asia Pacific to Remain the Fastest Growing Region On account of Rapid Digitalization
The Asia Pacific region is poised to experience the fastest growth in the payment security market, driven by the rapid adoption of digitalization, increasing trends toward online transactions and wallets, and the acceptance of various modes of payment in different industries to provide greater convenience to consumers. Over 50% of the Asia Pacific population used online payment options in 2022, citing the convenience of payment options, data security, and ease of access through smartphones. India has experienced over 60% growth in digital payment volume, with the government taking various initiatives to support this trend. The retail, food and beverage, and hospitality sectors have seen significant proliferation and adoption of digital payment methods, which has driven demand for payment security in the region.
In Europe, the payment security market has made steady progress in recent years but is expected to experience significant growth due to the trend toward contactless payment options at retail outlets. Prominent countries such as the Netherlands, the U.K., and Germany are showing potential for growth in the forecast period.
Competitive Landscape
- BLUEFIN PAYMENT SYSTEMS
- Cybersource
- ELAVON INC.
- INGENICO
- Mastercard
- PayU
- Shift4
- TokenEx Inc.
- ValueMentor
The global payment security market is segmented as follows:
By Solution
- Fraud Detection & Prevention
- Encryption
- Tokenization
By Form
- BFSI
- Government & Utilities
- IT & Telecom
- Retail & E-Commerce
- Media & Entertainment
- Travel & Hospitality
By Enterprise Size
- Small & Medium
- Large
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic countries
- Denmark
- Finland
- Iceland
- Sweden
- Norway
- Benelux Reunion
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Payment Security Market By Solution
- February-2023
- 148
- Global
- information-technology-communication-iot
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