The global payment monitoring market size was valued at nearly USD 15.02 Bn in 2022 and is anticipated to reach USD 57.57 Bn by 2031, expanding at a CAGR of 16.1 % during 2023 – 2031. The growth of the market is attributed to rising awareness in organizations to comply with standards and regulations related to payment services and using advanced analytical tools for risk alerting system.
Payment monitoring is the method of analyzing, administering, and reviewing the transaction handled on a business application. The ability of a company to implement an effective and organized payment monitoring system is one of the most important means for its survival in the intense market competition. It is the key approach that allows businesses to know where their business operations are heading towards. The main function of payment monitoring system is to observe customer transactions, which involve assessing customer’s activity, historical, and current information. It is mainly used to assess the complete performance of the transaction processing system and also used by the administrations for skillfully and effectually managing different types of transactions of the customer.
The COVID-19 pandemic outbreak has brought considerable impact on market growth. During the pandemic, organizations were not functional. However, in pandemic, fraudulent cases tends to rise, resulting increase in payment fraud. This signifies the need of payment monitoring solutions.
Payment Monitoring Market Trends, Drivers, Restraints, and Opportunities
- Rising necessity of organization to comply with Know Your Customer (KYC) regulations, eliminate money laundering case, and eradicate Counter Terrorism Financing (CTF) are some of the key factors driving the market growth.
- Using payment monitoring solutions by organization to reduce fraudulent activities is projected to drive the market expansion during the forecast period.
- Lack of skilled professionals such as data analysts, data scientists, statistician, and ethical hackers to manage and implant payment monitoring solutions can hamper the market growth in projected timeline.
- Increasing threats of cyber-attacks create a key security concern which acts as a major challenge that can restrict the market growth.
- Integrating technologies, such as big data and machine learning with payment monitoring solutions is projected to create significant growth opportunities for the market.
Scope of the Payment Monitoring Market Report
The report on the global payment monitoring market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Payment Monitoring Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Services (Training & Consulting, Integration & Deployment, and Support & Maintenance), Enterprise Sizes (Small & Medium Enterprise and Large Enterprise), End-Users (Retail, IT & Telecom, Energy & Utility, BFSI, Manufacturing, Healthcare, Government, and Others), Deployments (On-premise and Cloud-based), Solutions (Dashboard & Reporting, Watch List Screening, Case Management, and KYC/Customer Onboarding), and Applications (Customer Identity Management, Anti-money Laundering (AML), Fraud Detection & Prevention, and Compliance Management)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Fair Isaac Corp.; Fiserv Inc.; SAS Institute; Nice Ltd.; Thomson Reuters Corp.; BAE Systems; ACI Worldwide Inc.; Oracle Corp.; FIS; and Software AG.
Payment Monitoring Market Segment Insights
Training & Consulting segment is expected to grow at a rapid pace
Based on services, the global payment monitoring market is divided into training & consulting, integration & deployment, and support & maintenance. The training & consulting segment is expected to grow at a rapid pace during the forecast period attributed to changing needs of consumers leading to change in business operations, thus, escalating need of training & consulting among organizations. However, the support & maintenance segment is anticipated to expand at a substantial CAGR during the forecast period due to payment monitoring solutions must remain efficient with the changing technologies such as organizations need vendor support in case of technical issues.
Large enterprise segment is projected to expand at a considerable CAGR
In terms of enterprise sizes, the market is bifurcated into small & medium enterprise and large enterprise. The small & medium enterprise segment is expected to account for a major market share in the projected timeline owing to small & medium enterprises, which are more vulnerable to financial crimes and money laundering. These enterprises are adapting payment monitoring solutions to reduce fraudulent activities. On the other hand, the large enterprise segment is projected to expand a considerable CAGR during the forecast period due to high affordability and capital allows large enterprise to implement payment monitor solutions.
BFSI segment is estimated to account for a significant market share.
On the basis of end-users, the global payment monitoring market is segregated into retail, IT & telecom, energy & utility, BFSI, manufacturing, healthcare, government, and others. The BFSI segment is estimated to account for a significant market share during the forecast period owing to adoption of payment monitoring solutions by various financial institutions for eliminating money laundering cases and terror financing activities. However, the retail segment is anticipated to register a substantial growth rate during the projected timeline due to increasing trend of online shopping leading to increase in digital payment, which is in turn, escalating the demand of payment monitoring solutions.
On-premise segment is anticipated to grow at a robust pace
Based on deployments, the market is bifurcated into on-premise and cloud-based. The on-premise segment is anticipated to grow at a robust pace during the projected period as on-premise solution offers entire control over the software. This deployment allows secure storage of all sensitive data internally; so, there is no risk of exposing it to a third-party. On the other hand, the cloud-based segment is estimated to expand at a considerable CAGR during the forecast period as it is easy to maintain, upgrade, as well as reduces the cost of hardware, software, technical staff, and storage.
KYC/customer onboarding segment to hold a considerable market share
On the basis of solutions, the global payment monitoring market is fragmented into dashboard & reporting, watch list screening, case management, and KYC/customer onboarding. The KYC/customer onboarding segment is projected to hold considerable market share during the forecast period since KYC solution provides data channels and analytical tools, which gives necessary information about customers and analyzes ongoing risk. Furthermore, implanting KYC improves customer experience, lowers compliance risk and cost, and increases revenue growth. However, the case management segment is anticipated to expand at a robust growth rate in the coming years as it improves consumer experience, increase business efficiency, and helps in automation of business process.
Anti-money laundering segment to exhibit a high CAGR
In terms of applications, the market is segmented into customer identity management, anti-money laundering, fraud detection & prevention, and compliance management. The anti-money laundering segment is anticipated to expand at a high CAGR during the projected timeline as it has become important for every organization to invest in anti-money laundering technologies. The adoption of such monitoring devices can avoid financial frauds for any payment process. On the other hand, the fraud detection & prevention segment is projected to expand a considerable CAGR during the forecast period owing to rise in fraudulent cases and digital payment systems. Fraud detection & prevention tools analyse data from several sources to detect abnormalities, monitor risk, and alert security system about it.
North America is anticipated to constitute a key market share
In terms of region, the global payment monitoring market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to constitute a key share of the market during the projected period owing to presence of two major economies, which are adapting and implanting payment monitoring tools for efficient business operations. However, the Asia Pacific market is anticipated to increase at a rapid pace during the forecast period due to rise in e-commerce industry and installation of payment monitoring tools by small & medium and large enterprises to prevent from cyber-attacks.
Segments Covered in the Report
The global payment monitoring market has been segmented on the basis of
- Training & Consulting
- Integration & Deployment
- Support & Maintenance
- Small & Medium Enterprise
- Large Enterprise
- IT & Telecom
- Energy & Utility
- Dashboard & Reporting
- Watch List Screening
- Case Management
- KYC/Customer Onboarding
- Customer Identity Management
- Anti-money Laundering (AML)
- Fraud Detection & Prevention
- Compliance Management
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
Key players competing in the global payment monitoring market share are Fair Isaac Corp.; Fiserv Inc.; SAS Institute; Nice Ltd.; Thomson Reuters Corp.; BAE Systems; ACI Worldwide Inc.; Oracle Corp.; FIS; and Software AG. Companies are focusing on forming collaboration as well as acquiring small enterprises to expand their market share. In October 2018, DadeSystems and Fiserv, Inc. collaborated to give automated and better receivables processing solution. This collaboration aimed to help Fiserv, Inc. to get access to DadePay AR automation with Fiserv as connection point.