Payment Security Market Size, Industry Trends Report | 2031

Report Description

Payment Security Market Outlook 2031:

The global payment security market size was valued at USD 20.06 Billion in 2022 and is projected to reach USD 58.37 Billion by 2031, expanding at a CAGR of 12.6% during the forecast period 2023 - 2031. The growth of the market is attributed to the rising need for payment security in thriving e-commerce and retail industries as well as the rapid use of payment gateway platforms.

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Payment security refers to the implementation of several procedures by organizations to secure their customers' data as well as avoid fraudulent transactions and data breaches. The rise of the Internet of Things (IoT) results in the inclusion of payment capabilities in a variety of linked devices and wearables.

Visa Inc., for instance, is developing a connected automobile solution that may allow users to pay for numerous amenities such as gasoline, parking, restaurants, and others directly from their vehicle.

Moreover, payment security providers are active in R&D and are focused on developing additional sophisticated payment security solutions. Chatbots is one of the most well-known use of Artificial Intelligence (AI) in financial services and used in a variety of businesses including financial institutions.

They have aided in the reduction of fraud, the security of card and other payment data, and the reduction of complexity while dealing with effective services of clients at the same time. Chatbots are being used by many banks and fintech businesses for e-commerce and customer support applications.

The COVID-19 pandemic has drastically changed consumers’ buying behaviors and boosted the e-commerce business. Governments and regulatory organizations have begun to favor digital payments as a quick and secure alternative. The worldwide payment security market has benefited from the pandemic.

Payment Security Market Trends, Drivers, Restraints, and Opportunities

• Rising acceptance of electronic transactions, mobile-based payments, and e-wallets are expected to boost the market during the projected period.
• Integration of AI and Machine Learning aids in the security of data and the safety of customers during online transactions. This is expected to boost the market growth in the coming years.
• Increasing frequency of data breaches is a key factor driving the growth of the market during the forecast period. 
• Lack of proper security protocols in the banking sector in different countries act as a restraining factor that can hinder the market growth.
• Mobile payments aided by complementary technologies such as cloud, analytics, and social security are anticipated to provide lucrative opportunities for market growth.

Scope of Payment Security Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Payment Security Market Segment Insights

POS-based segment to expand at a considerable CAGR

On the basis of platform, the payment security market is segmented into POS-based/mobile-based and web-based. The POS-based segment is projected to expand at a considerable CAGR during the forecast period due to growing customer interest in online purchasing, simplicity of use, and other conveniences.

Payment security is critical for businesses that accept card not present (CNP) payments and electronic transactions. Payment security problems and fraud are on the rise as mobile and POS transactions have increased significantly over the years.

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Fraud detection & prevention segment to hold significant market share

In terms of solution, the market is divided into fraud detection & prevention, encryption, and tokenization. The fraud detection & prevention segment is expected to hold significant share of the market as it offers a variety of fraud analytics solutions including big data analytics, social media analytics, customer analytics, behavioral analytics, predictive analytics, and governance, risk, and compliance solutions.

However, the encryption segment is projected to account for a large market share in the coming years. Card data is encrypted into a sequence of integers using point-to-point encryption (P2PE) and is widely adopted across business organizations to ensure secure payment activities.

Large enterprises segment to grow at a healthy rate

Based on enterprise, the payment security market is bifurcated into large enterprises and small & medium enterprises. The large enterprise segment is expected to be a fast-growing segment during the forecast period as high-value transactions occur on a daily basis in significant organizations, prompting them to choose premium payment security solutions.

Moreover, the small & medium enterprises segment is expected to grow at a significant rate during the projected period as they are increasingly accepting methods including encryption and tokenization.

Retail & e-commerce segment to dominate the market

On the basis of end-user, the market is segregated into travel & hospitality, healthcare, telecom & IT, education, media & entertainment, retail & e-commerce, and others.  The retail & e-commerce is anticipated to dominate the market during the projected timeline.

Rising 4G technology adoption, smartphone usage, and rising consumer buying power are accelerating the implementation of payment security solutions in the retail and e-commerce industries. The travel & hospitality segment, however, is expected to proliferate rapidly owing to increasing consumer spending and wide usage of mobile payments and e-wallets.

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North America is anticipated to constitute a key market share

In terms of region, the payment security market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the projected period due to the presence of key players such as Paypal, Bluefin, Braintree, and Elavon dominating the online payment market.

However, the market of Asia Pacific is anticipated to expand at a rapid pace during the forecast period due to the expansion of several fintech startups and the growing number of retail and e-commerce platforms across the region.

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