Global Payment Security Market 2022-2028

Global Payment Security Market Size, Share & Trends Analysis Report by Solution (Encryption, Tokenization, and Fraud Detection and Prevention), By Industry (Retail and Commercial, Travel & Hospitality, BFSI, IT & Telecom, Media & Entertainment, and Others)Forecast Period (2022-2028)

The global payment security market is anticipated to grow at a substantial CAGR of 15.2% during the forecast period. One of the key factors driving the growth of the payment security industry is the increasing frequency of data breaches. Data breaches are becoming more common, which means more financial losses. As a result, the demand for payment security solutions is increasing. Furthermore, the rising need for sophisticated payment security solutions for digital e-commerce, as well as the growing use of payment applications across other industry verticals, presents substantial potential prospects for the digital payment market. However, the lack of trust in internet banking limits the market's growth to some extent.

Payment security solutions are becoming increasingly popular due to the requirements of the Payment Card Industry Data Security Standard (PCI DSS) rules, increased end-user knowledge of payment security, and government attempts to promote cashless payments. Furthermore, recent technology advancements in mobile commerce have enabled consumers to conduct digital transactions from their cellphones, including purchasing items and apps over wireless networks, redeeming coupons and tickets, banking, and completing point-of-sale payments. According to ACI Worldwide, in 2020, more than 70.3 billion real-time payment transactions were processed globally, an increase of 41 % over the prior year up from 40.6% in 2019 and 18.9% in 2018. Open Banking and RTP mean consumers have control over their information and how they want to share it. They can easily pay merchants by text message, with the guarantee that funds are available and instantly transferred. India, China, South Korea, Thailand, and UK rank in order as the top five countries generating real-time transactions in 2020.

The global payment security market is segmented based on solutions and industry. Based on the solution, the market is further categorized into encryption, tokenization, fraud detection, and prevention. There are various industries using payment security solutions and contributing to the growth of the market. The various industries include retail and commercial, travel and hospitality, BFSI, IT and telecom, media and entertainment, and others (healthcare, education). Fraud detection and prevention solutions are anticipated to have significant market growth during the forecast period. The increasing number of fraud-related activities in the BFSI and retail industry encourages the demand for fraud detection and prevention solutions across the globe. The most extensively utilized payment security solution is fraud detection and prevention. It offers big data analytics, social media analytics, customer analytics, behavioral analytics, predictive analytics, and governance, risk, and compliance solutions, among other fraud analytics services. These solutions are an essential component of any electronic transaction.

According to Sift Scale-invariant feature transform in late 2021, Sift’s Trust and Safety Architects exposed a growing number of fraud schemes on Telegram offering unlimited access to BNPL accounts through fake credit card numbers and compromised email addresses showcasing the array of methods actors in the Fraud Economy are using to target the entire fintech sector. Derived from a global network of over 34,000 sites and apps and a survey of over 1,000 consumers, the index reveals that the payment fraud attack rate across fintech ballooned 70% in 2021 making it the highest increase across any vertical in the network.

Geographically, the market is segmented into North America, Europe, Asia Pacific, and the Rest of the World. North America is projecting significant growth in the region as the rising demand for payment security is due to increasing data breaches, fraudulent activities, and identity theft in the country. According to the Aite-Novarica Group, 47% of Americans experienced financial identity theft in 2020.The group’s report, US Identity Theft, The Stark Reality, found that losses from identity theft cases cost $502.5 billion in 2019 and increased 42% to $712.4 billion in 2020. There were 4.8 million complaints received by the FTC in 2020, up 45% from 3.3 million in 2019, mostly due to the 113% increase in identity theft complaints. Additionally, the Identity Theft Research Center (ITRC), in its annual data breach report, announced that in 2021 there were a record 1,862 data compromises in the U.S., a 68% increase over 2020 and 23 % over the previous all-time high of 1,506 and 294 million people had their data compromised in 2021 compared to 310 million in 2020.

The major companies serving the global Payment Security market include Broadcom Inc., CyberSource Corp., Elavon Inc., Ingenico Group, S.A., PayPal, Inc., and others. The other market players that contribute to the growth of the market include Bluefin Payment Systems LLC, Index Systems, Inc., Intelligent Payments Group Ltd., Shift4 Payments, LLC., TNS Inc., and TokenEx, LLC. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in April 2020, Bluefin Payment Systems LLC partnered with Payway to provide Bluefin’s PCI-validated Point-to-Point Encryption (P2PE) solution to clients utilizing the Payway platform. Payway offers a cloud-based SaaS payment solution designed to give organizations total transparency into their card-not-present transactions.

Research Methodology

The market study of the global payment security market is incorporated by extensive primary and secondary research conducted by the research team at OMR. Secondary research has been conducted to refine the available data to breakdown the market into various segments, and derive the total market size, market forecast, and growth rate. Different approaches have been worked on to derive the market value and market growth rate. Our team collects facts and data related to the market from different geography to provide a better regional outlook. In the report, the country-level analysis is provided by analyzing various regional players, regional tax laws and policies, consumer behavior, and macroeconomic factors. Numbers extracted from secondary research have been authenticated by conducting proper primary research. It includes tracking down key people from the industry and interviewing them to validate the data. This enables our analyst to derive the closest possible figures without any major deviations in the actual number. Our analysts try to contact as many executives, managers, key opinion leaders, and industry experts. Primary research brings authenticity to our reports.

Secondary Sources Include

• Financial reports of companies involved in the market.
• Whitepapers, research papers, and news blogs.
• Company websites and their product catalog.

The report provides an in-depth analysis of the market size, and intended quality of the service preferred by consumers. The report will serve as a source for a 360-degree analysis of the market thoroughly integrating different models.

Market Segmentation

1. Global Payment Security Market Research and Analysis by Solution
2. Global Payment Security Market Research and Analysis by Industry

The Report Covers

• Comprehensive research methodology of the global payment security market.
• This report also includes a detailed and extensive market overview with key analyst insights.
• An exhaustive analysis of macro and micro factors influencing the market guided by key recommendations.
• Analysis of regional regulations and other government policies impacting the global payment security market.
• Insights about market determinants that are stimulating the global payment security market.
• Detailed and extensive market segments with the regional distribution of forecasted revenues.
• Extensive profiles and recent developments of market players.