Artificial Intelligence (AI)-Enhanced Point-of-Sale (POS) Fraud Market Report 2026

The artificial intelligence (ai)-enhanced point-of-sale (pos) fraud market size has grown exponentially in recent years. It will grow from $3.92 billion in 2025 to $4.76 billion in 2026 at a compound annual growth rate (CAGR) of 21.4%. The growth in the historic period can be attributed to increasing digital payment adoption, rising instances of POS-related fraud, expansion of retail digitization, growing use of card-based transactions, increased focus on payment security.

The artificial intelligence (ai)-enhanced point-of-sale (pos) fraud market size is expected to see exponential growth in the next few years. It will grow to $10.26 billion in 2030 at a compound annual growth rate (CAGR) of 21.2%. The growth in the forecast period can be attributed to increasing adoption of ai-driven fraud prevention solutions, rising regulatory scrutiny on payment security, expansion of contactless payment ecosystems, growing investment in real-time fraud analytics, increasing demand for scalable cloud fraud platforms. Major trends in the forecast period include increasing deployment of ai-based transaction monitoring systems, rising adoption of behavioral analytics for fraud detection, growing use of real-time pos threat intelligence, expansion of cloud-based fraud prevention platforms, enhanced focus on omnichannel fraud mitigation.

The increasing volume of digital payment transactions is anticipated to drive the expansion of the artificial intelligence (AI)-enabled point-of-sale (POS) fraud market in the coming years. Digital payment solutions encompass electronic methods and platforms that allow money transfers between parties without the use of physical cash. The growth of digital payment solutions is supported by rising smartphone usage and broader internet penetration, which make electronic transactions more convenient and widely accessible. Artificial intelligence (AI)-enabled point-of-sale (POS) fraud detection enhances the security of digital payment transactions by analyzing behavioral patterns in real time, enabling the effective identification of suspicious activities. This capability helps reduce financial losses by preventing fraudulent transactions while strengthening trust and safety within payment systems. For example, in January 2024, according to the European Central Bank, a Germany-based central banking institution, the number of contactless card payments increased by 24.3% to 20.9 billion in 2023 compared with 2022. Therefore, the growth in digital payment transactions is contributing to the expansion of the artificial intelligence (AI)-enabled point-of-sale (POS) fraud market.

Major players in the artificial intelligence (AI)-enhanced point-of-sale (POS) fraud market are prioritizing the development of advanced solutions, including AI-driven fraud detection platforms, to strengthen real-time transaction security and reduce financial losses. An artificial intelligence (AI)-based fraud detection platform is a compact, high-speed, and efficient system that leverages AI to identify and block fraudulent transactions in real time without relying on extensive computational resources. For example, in July 2025, Subex Limited, an India-based software provider, introduced FraudZap, a lightweight AI-enabled fraud detection platform designed specifically for telecom operators to combat increasingly sophisticated fraud quickly and effectively. The platform is built for high agility and accuracy, enabling telecom operators to manage emerging fraud risks with minimal total cost of ownership and almost no deployment complexity. Its modular design allows rapid deployment of focused fraud controls, combining real-time rule execution with continuously learning AI models to instantly identify and mitigate fraud threats.

In December 2024, Visa Inc., a US-based digital payments and fintech leader, acquired UK-based Featurespace Limited for \$0.945 billion to strengthen its global fraud detection capabilities. This acquisition enables Visa to integrate Featurespace’s AI-powered real-time payments protection technology, enhancing security, reducing financial crime, and delivering seamless fraud prevention solutions for both clients and consumers in the point-of-sale (POS) environment.

Major companies operating in the artificial intelligence (ai)-enhanced point-of-sale (pos) fraud market are Amazon Web Services Inc., International Business Machines Corporation, Oracle Corporation, PayPal Holdings Inc., Stripe Inc., ClearSale S.A., Jumio Corporation, Feedzai S.A., Signifyd Inc., Matellio Inc., Neural Technologies Ltd., DataVisor Inc., ZestFinance Inc., Hawk AI GmbH, Ginesys, Tookitaki Holding Pte Ltd., ComplyAdvantage Ltd., DataDome SAS, Sift Science Inc., Sardine AI Corp.

North America was the largest region in the artificial intelligence (AI)-enhanced point-of-sale (POS) fraud market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (ai)-enhanced point-of-sale (pos) fraud market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (ai)-enhanced point-of-sale (pos) fraud market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial intelligence (AI)-enhanced point-of-sale (POS) fraud market consists of revenues earned by entities by providing services such as system integration, deployment support, training and education, fraud analytics outsourcing, maintenance and upgrades, risk assessment services, and compliance support. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI)-enhanced point-of-sale (POS) fraud market also includes sales of fraud detection software, transaction monitoring tools, real-time risk scoring engines, behavioral analytics platforms, device fingerprinting systems, alert management dashboards, and anomaly detection systems. 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.

This product will be delivered within 1-3 business days.