Online Payment Fraud Detection Market Report 2025

The online payment fraud detection market size has grown rapidly in recent years. It will grow from $9.56 billion in 2024 to $11.16 billion in 2025 at a compound annual growth rate (CAGR) of 16.8%. The growth during the historic period can be attributed to the increasing reliance on legacy fraud detection systems with limited adaptability, the rising complexity of manual transaction monitoring processes, escalating costs associated with chargebacks and fraud-related losses, growing merchant adoption of early fraud warning systems, and heightened government focus on securing digital payment infrastructure.

The online payment fraud detection market size is expected to see rapid growth in the next few years. It will grow to $20.52 billion in 2029 at a compound annual growth rate (CAGR) of 16.4%. The expected growth in the forecast period is driven by the rising integration of AI and machine learning in fraud detection, increased adoption of biometric authentication in digital payments, growing demand for real-time fraud analytics solutions, expansion of digital wallets and contactless payment methods, and stronger regulatory enforcement on payment security compliance. Key trends anticipated in the forecast period include advancements in AI-based fraud detection systems, development of real-time transaction monitoring tools, innovations in biometric authentication techniques, progress in predictive analytics for fraud prevention, and the emergence of cloud-based fraud detection platforms.

The rapid growth of digital payments is expected to drive the expansion of the online payment fraud detection market. Digital payments involve the use of electronic methods such as mobile wallets, online banking, and contactless cards to conduct financial transactions. This surge in digital payment adoption is largely fueled by increased smartphone and internet usage, allowing users to perform instant transactions worldwide with convenience and speed. Online payment fraud detection plays a critical role in securing these transactions by leveraging AI and analytics to detect and prevent suspicious activity in real time, thereby enhancing trust, minimizing financial losses, and ensuring secure, compliant payment experiences. For instance, in January 2024, the European Central Bank, the central bank for the European Union countries, reported a 24.3% increase in contactless card payments during the first half of 2023, rising from 20.9 billion in the same period of 2022. The total value of these transactions also grew by 25.9% to €0.5 trillion ($545.27 billion). Thus, the rapid expansion of digital payments is fueling growth in the online payment fraud detection market.

Companies in the online payment fraud detection market are increasingly focused on advanced technologies such as machine-learning-based fraud detection tools to help financial institutions proactively defend against sophisticated cyber threats. These tools use machine learning to analyze transaction patterns, identify anomalies, and adapt to emerging threats, thereby improving accuracy over time. For example, in October 2022, Checkout.com, a UK-based provider of cloud-based payment solutions, introduced Fraud Detection Pro - an advanced, customizable fraud prevention platform powered by machine learning and a global transaction data network. It processes billions of transactions worldwide, enabling merchants to create tailored fraud prevention strategies using advanced rules and decision-making systems. This tool effectively blocks fraudulent activity while maintaining a smooth experience for legitimate users. It is designed to quickly adapt to changing fraud tactics, including bot attacks and synthetic identities, helping businesses around the world reduce financial losses from online payment fraud.

In April 2025, Experian Plc, a credit reporting firm based in Ireland, acquired ClearSale SA for $350 million. The acquisition is intended to enhance Experian’s fraud prevention and data security offerings in Brazil by integrating ClearSale into its existing Brazilian business, Serasa Experian. ClearSale SA is a Brazil-based company that specializes in digital fraud prevention solutions.

Major players in the online payment fraud detection market are International Business Machines Corporation, Visa Inc., DXC Technology Company, Experian plc, SAS Institute Inc., LexisNexis Risk Solutions Inc., NICE Ltd., Worldpay Inc., ACI Worldwide Inc., Fair Isaac Corporation, Forter Ltd., RSA Security LLC, Riskified Ltd., CyberSource Corporation, Sift Science Inc., Kount Inc., Gurucul Inc., FRISS Fraud Detection Software B.V., MaxMind Inc., DataVisor Inc., Cleafy S.r.l.

North America was the largest region in the online payment fraud detection market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in online payment fraud detection report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the online payment fraud detection market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s recommendations and conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Online payment fraud detection is the process of identifying and preventing unauthorized or suspicious transactions conducted online. It employs technologies such as machine learning, rule-based systems, behavioral analytics, and real-time monitoring to detect fraudulent activities such as identity theft, account takeovers, and the use of stolen credit card information. This detection process safeguards both businesses and consumers by flagging potentially fraudulent payments before they are completed.

The main components of online payment fraud detection include software and services. Software solutions leverage artificial intelligence (AI), machine learning, and analytics to monitor transactions in real time and flag suspicious activities. These solutions are delivered through various deployment modes, including on-premises and cloud, and cover different fraud types such as identity theft, account takeover, card-not-present fraud, and transaction laundering. They are used by organizations of all sizes, from small and medium enterprises to large enterprises, across key verticals such as banking, financial services, and insurance (BFSI), information technology (IT) and telecommunications, government, real estate and construction, energy and utilities, and others.

The online payment fraud detection market research report is one of a series of new reports that provides online payment fraud detection market statistics, including the online payment fraud detection industry global market size, regional shares, competitors with the online payment fraud detection market share, detailed online payment fraud detection market segments, market trends, and opportunities, and any further data you may need to thrive in the online payment fraud detection industry. This online payment fraud detection market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The online payment fraud detection market includes of revenues earned by entities by providing services such as real-time transaction monitoring, Artificial Intelligence (AI)-based fraud analytics, behavioral biometrics, identity verification, and risk scoring and management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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