3D Secure 2.0 (3DS 2.0) Payer Authentication Market Report 2026

The 3d secure 2 (3ds 2.0) payer authentication market size has grown rapidly in recent years. It will grow from $1.65 billion in 2025 to $1.91 billion in 2026 at a compound annual growth rate (CAGR) of 15.8%. The growth in the historic period can be attributed to increasing growth of e-commerce transactions, rising online payment fraud incidents, expansion of card-not-present transactions, regulatory mandates for strong customer authentication, adoption of digital wallets.

The 3d secure 2 (3ds 2.0) payer authentication market size is expected to see rapid growth in the next few years. It will grow to $3.39 billion in 2030 at a compound annual growth rate (CAGR) of 15.4%. The growth in the forecast period can be attributed to increasing investments in real-time fraud analytics, rising adoption of biometric authentication, expansion of cross-border e-commerce payments, growing demand for seamless customer experiences, increased focus on regulatory compliance automation. Major trends in the forecast period include increasing adoption of risk-based authentication models, rising integration with payment gateways, growing use of behavioral analytics, expansion of frictionless checkout experiences, enhanced focus on fraud reduction.

The rising online payment frauds are expected to drive the growth of the 3D secure 2 (3DS 2.0) payer authentication market in the coming years. Online payment fraud refers to the unauthorized use of payment details to conduct fraudulent transactions over the internet. The increase in fraud is linked to the rise in digital transactions as more users share sensitive payment data across unsecured or unverified platforms. 3D secure 2 (3DS 2.0) payer authentication helps counter this challenge by enabling real-time, risk-based identity verification during transactions. It strengthens security while ensuring a seamless user experience, reducing fraud and enhancing consumer trust in digital payments. For example, in May 2025, UK Finance, a UK-based government department, reported that unauthorized fraud losses rose by 2% to about $915 million (£722 million), with 3.13 million confirmed cases in 2024, marking a 14% increase compared to 2023. This indicates that rising online payment frauds are fueling the demand for 3D secure 2 payer authentication.

Companies in the 3D secure 2 payer authentication market are increasingly focusing on innovative solutions such as authentication services to strengthen transaction security, improve user experience, and minimize fraud risks. Authentication services are systems or processes that verify the identity of a user, device, or system before permitting access to a digital resource, transaction, or service. For example, in February 2023, PayU Payments Private Limited, an India-based online payments solution provider, launched a 3DS 2 SDK authentication service for Indian merchants. This EMVCo-certified service offers a next-generation solution to streamline online card payments, providing businesses with the ability to deliver seamless in-app or web checkouts. It uses biometrics and frictionless flows to ensure faster, more secure authentication, reducing both payment times and cart abandonment.

In December 2023, Entersekt Pty Ltd., a South Africa-based fintech company, acquired the 3-D secure payment authentication business of Modirum Limited for an undisclosed sum. Through this acquisition, Entersekt aims to strengthen its global position in the digital payment security market by expanding its capabilities in secure authentication solutions for banks, card issuers, and merchants. Modirum Limited, based in Finland, specializes in 3D secure 2 payer authentication technology.

Major companies operating in the 3d secure 2 (3ds 2.0) payer authentication market are American Express Company, Visa Inc., Mastercard Incorporated, Fiserv Inc., Adyen N.V., Naspers Payments Private Limited, Worldline S.A., Elavon Inc., Nets A/S, ACI Worldwide Inc., Marqeta Inc., CardConnect LLC, GMO Payment Gateway Inc., UnionPay International Co. Ltd., BlueSnap Inc., Entersekt (Pty) Ltd., Modirum MDPay Ltd., Braintree Payment Solutions LLC, GPayments Pty Ltd., Cardstream Limited.

North America was the largest region in the 3D secure 2 (3DS 2.0) payer authentication market in 2025. The regions covered in the 3d secure 2 (3ds 2.0) payer authentication market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the 3d secure 2 (3ds 2.0) payer authentication market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The 3D secure 2 (3DS 2.0) payer authentication market consists of revenues earned by entities by providing services such as fraud risk assessment services, transaction monitoring services, compliance consulting services, authentication management services, managed security services, and payment gateway services. The market value includes the value of related goods sold by the service provider or included within the service offering. The 3D secure 2 (3DS 2.0) payer authentication market also includes sales of risk-based authentication platforms, fraud detection software, authentication servers, payer authentication application programming interfaces (APIs), software development kits (SDKs), and secure payment authentication modules. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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