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3D Secure Pay Authentication Market Size, Share & COVID-19 Impact Analysis, By Type (Access Control Server, Merchant Plug-in, Others) By Application (Merchant and Payment Processors, Banks), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI106283



The global 3D secure pay authentication market size was USD 601.3 million in 2020. The market is projected to grow from USD 667.1 million in 2021 to USD 1,539.0 million in 2028 at a CAGR of 12.7% in the 2021-2028 period. The offerings considered in the market are Verified by Visa, Securecode by Mastercard, Safekey by American Express, Discover’ ProtectBuy, among others. The global impact of COVID-19 has been unprecedented and staggering, with 3D secure pay authentication witnessing a significant impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 10.7% in 2020 as compared to the average year-on-year growth during 2017-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

The digital economy and e-commerce are becoming increasingly important in attempts to fulfill the Sustainable Development Goals (SDGs), presenting new possibilities as well as new challenges. The pandemic has caused a shift in how merchants interact with customers and carry out their tasks, which has had an immediate impact on the e-commerce business. Number of online payment frauds in the e-commerce industry are growing as the number of online sales are increasing. Additionally, in order to help e-commerce companies and merchants better safeguard their assets from online frauds, key players are launching 3-D Secure (3DS) online payment solutions. For instance,

  • In July 2020, UnionPay International launched UnionPay 3-D Secure (3DS) online payment authentication solution which is integrated with EMVCo Specifications to make payment authentication seamless for overseas e-commerce merchants.

  • In February 2021, Entrust Corporation, a payment and safety services provider, partnered with Netcetera to assist financial institutions in combating card-not-present (CNP) transaction fraud.

COVID-19 Impact

Rise in Number of Payment Fraud During COVID-19 Spread Led to Exponential Growth of Market

COVID-19 disrupted every aspect of the e-commerce industry and resulted in high spike fraud scams experienced by consumers and businesses such as payment and card frauds, malicious activities, among others. According to the Federal Trade Commission (FTC), consumers in the U.S. lost USD 246.0 million in 2020 due to online shopping frauds. Merchants are scrambling to adapt to COVID-19, moving their focus from in-store to online settings. According to FIS’ FraudSight data, there has been a 78% increase in card-not-present activities during March to April 2020. Likewise, FIS PACE survey indicates that 40% of the U.S. consumers are likely to shop from online applications and carry out payment during browsers and applications.

To mitigate such frauds, all online payment services firms operating in Europe were forced to incorporate 3DS2 into their checkouts by the end of 2020. Card issuers automatically refused card payments that were not authenticated by 3DS2 starting in January 2021. This resulted in an upshift in the adoption of 3DS2 standard among companies and payment service companies.


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Growing Adoption of Payment Secure Platforms in Hotel Industry is Driving Market Growth

Hotels and restaurants have been fast to adopt new technologies, such as computerized table service and app-based ordering. There is now a plethora of mobile platforms that make ordering and paying easier for customers, with a variety of payment methods. Most hotels, resorts, and tourism centers now accept online transactions and payments for things such as room reservations and other services. During the course of a reservation transaction, online fraud can occur.

Online payments are frequently made directly on the hotel's website, through online travel agents (OTAs), and/or through online booking engines. When hotels accept card present transactions through their property management system, as well as when they make and receive payments online, they are more vulnerable to online payment frauds and malicious activities.

With the integration of PSD2 standard, hoteliers and restaurants will necessitate forced authentication or Strong Customer Authentication (SCA) requiring two-factor authentication (2FA) to be precise and secure while carrying out online payments. This updated version adds frictionless authentication, which reduces cardholder frustrations while making a card purchase while simultaneously decreasing fraud and increasing the security of online transactions. By integrating the challenge into the checkout flow rather than sending the cardholder to extra authentication pages, 3D Secure 2 optimizes the authentication flow and allows hoteliers to conduct large transactions efficiently. This is likely to boost the 3D secure pay authentication growth in the near future.


Rising Number of Online Fraudulent Activities to Increase Implementation of 3D Secure Pay Authentication

With developing payment methods, increased e-commerce use, improved broadband access, and the introduction of new technologies, the cashless payment system is growing at an exponential rate. Digital payment transactions have increased by 76 % in 2020, according to Razorpay. Reserve Bank of India (RBI) stated that India's digital payments sector is expected to reach USD 700 billion by 2022.

In recent years, digital channels have revolutionized every aspect of companies, from social media to dating applications to food delivery, alternative transportation, and holiday rentals. The usage of mobile applications has increased even further this year as a result of country-wide quarantines, with people purchasing everything from groceries to vehicles through online applications. These factors are expected to result in a significant 3D secure pay authentication market growth during the forecast.

Fraudsters have altered their techniques to take advantage of increased in-app and online marketplace sales. Apart from the customers, the e-commerce transaction process involves many organizations at various stages, such as marketplaces, merchants, payment gateways, and financial institutions, and each of them might function as a vulnerability or attack point for malicious activities.

According to Merchant Savvy, online payment frauds are set to increase to USD 40.62 billion in 2027, 25% higher than in 2020. This in result is expected to create a robust payment security structure to set high standards to detect and prevent fraud in digital transaction systems. Businesses may grow their client base by providing the flexibility and security requirements for making payments using credit/debit cards, mobile money, e-Wallets, and other methods. This, as a result, is expected to drive the adoption of 3D secure pay authentications in the near future.


Lack of Global Standards and Cross-Border Payments to Hinder Growth

Several governments and nationalized banks have developed high- and low-value payment systems based on security standards and proprietary communication during the last few decades. However, as payment systems grow independently, there is a greater demand for standardization and automation across intra-bank and inter-bank networks between nations. This is expected to limit the adoption of 3D secure services, and it frequently necessitates human data collection and correction. Intra-bank transactions allow major companies and banks with subsidiaries and branches to shift funds to destination nations. Beneficiaries are credited immediately into their foreign operation account, or payments are delivered to their banks via national clearing and settlement procedures or bilateral transfers. Thus, availability of alternate options is likely to hamper the adoption of 3D secure pay authentication solutions. 


By Type Analysis

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Merchant plug-in (MPI) Being Integral Part of Payment Procedure Captures Maximum Market Share

Based on the type, the market is categorized into access control server, merchant plug-in, and others.

Merchant plug-in (MPI) captures maximum market share as it is one of the important elements of online card payment procedure that performs 3D secure pay authentication and verification of the debit and credit card. It is a software module that is installed at the server and enables the merchant to identify the issuer cards’ account number and determine if it is enrolled in a 3D-secure procedure. For example, ActiveMerchant is MPI offered by GPayments Pty Ltd, Plugins by Worldline, and MOLPay, Redsys, Iyzico by Worldpay.  MPI helps in verifying the cardholder with the issuing bank, thereby enabling a better success ratio for online transactions.

Access control server (ACS) holds a significant share in the 3D secure pay authentication market. ACS is one of the integral parts of the issuer domain/banks and is required to be maintained by each card issuer. It is a software module that allows issuing banks to participate in American Express’ Safekey, JCB’s J/Secure, Mastercard’s SecureCode, and Verified by Visa 3D Secure programs. For example, ActiveAccess offered by GPayments Pty Ltd, Xecure3D ACS by AsiaPay Technology, and Modirum ACS. It allows cardholders to confirm their identity by means of a personally-defined password, serving as an additional layer of security to online card transactions.

By Application Analysis

Ability to Reduce Fraud and Chargebacks Increased its Application Among Merchants and Payment Processors

Based on type, the market can be segmented across merchant and payment processors, and banks

3D secure pay authentication safeguards merchants from chargebacks in the case of a fraudulent transaction. In Europe, 3D secure is mandatory to accept credit cards and currently optional in other regions. It helps merchants and payment processors to reduce fraud and chargebacks, increase online business and cardholder confidence.

Likewise, 3D secure pay authentication allows banks to consider factors such as customer’s transaction history, customer’s behavioral history, cost of the transaction, and information about the customer’s device.


North America 3D Secure Pay Authentication Market Size, 2020 (USD Million)

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North America to Hold Largest Market due to Expanding E-Commerce Sector

Geographically, the market is fragmented into five major regions such as North America, South America, Europe, the Middle East & Africa, and Asia Pacific. They are further categorized into countries.

North America captures maximum market share and is expected to continue its dominance in the coming years. The U.S. is the best and largest ecommerce market in the world and is also expected to create huge opportunities in the near future. It has a comparatively straightforward payments environment, dominated by credit and debit cards. The country is considered as a home to many major international cards such as Mastercard, Visa, Discover, American Express, and Diners. Thus, the integration of 3D secure pay authentication is high in North America.

Europe is expected to witness the highest CAGR during the forecast period. Presently, the U.K. is the only European country supporting Address Verification Service (AVS) and 3D secure pay authentication. It is one of the few countries across the world, where enabling 3D secure pay authentication has been improving overall transactions. The U.K. is a mature online shopping market and consumers mostly opt bank-linked card payments for purchasing products. In countries such as Finland, Sweden, Denmark, and Norway, the acceptance rate of 3D secure is high (between 83-86% acceptance).  

Germany is considered as one of the most fragmented markets in regards to payment methods. Non-credit card payment methods such as SOFORT, SEPA direct debit, and Giropay captures the majority of online transactions.

Although Asia Pacific is seen to be leading in several trends, comprising mobile payment and ecommerce adoption, it is also considered as one of the most fragmented regions when it comes to digital payments. China is the largest retail ecommerce market in the Asia Pacific and is a driving force behind mobile commerce. The top payment approaches mostly used in the country are UnionPay, Alipay, and WeChat Pay. In countries such as Australia, Singapore, and South Korea credit and debit cards are the top payment methods.

In UAE, a considerable portion of consumers chose online payments as they believed it helped them save money; whereas, in countries such as Israel, online shopping was mostly preferred during COVID-19 pandemic to safeguard self from infectious virus. In November 2019, National Bank of Kuwait (NBK) became the only bank in the Middle East and North Africa (MENA) to implement Visa’s 3D Secure 2.0, with the aim to provide issuers and merchants with an easy way to authenticate cardholders before authorizing them.


Companies are Focused on Launching New and Innovative Solutions to Drive Sustainability

Key market players are focusing on innovating their 3DS solution platform and suites, owing to the rapid increase in digital transformation and boost of the ecommerce industry across the globe. These companies are improving existing products and developing new ones across a wide range of applications. These companies also aid organizations in speeding digital transformation and boosting consumer and employee experiences while strengthening security through analytics, outsourcing and sales, and technology and automation. The major companies provide innovative solutions for industries and users to handle the growing expectations of sustainability-based customers.

July 2020 – PAAY, a consumer safety and authentication company launched a partner program to make its real-time monitoring system available to payment providers, banks, and merchants in the global market and help them to monitor and implement EMV 3DS across multiple merchant accounts. PAAY's EMV 3DS solution allows merchants to future-proof their payment infrastructure by increasing authorization rates, reducing chargeback expenditures, and remaining compliant while providing a smooth and frictionless user experience.

December 2019 –  AsiaPay Limited, a digital payment services provider based in Hong Kong completed the certification of EMV 3-D Secure (3DS) version 2.2 and launched Xecure 3DS 2.0s solution, 3DS card authentication solution to empower Asian merchants and banks to enhance payment authentication effectively while minimizing the payment friction and sales dropouts.

List of the Key Companies Profiled:

  • Visa Inc. (California, U.S.)

  • Mastercard Incorporated (New York, U.S.)

  • The American Express Company (New York, U.S.)

  • Broadcom Inc. (California, U.S.)

  • Modirum (Tallinn, Estonia)

  • SIA S.p.A. (Milan, Italy)

  • Fiserv, Inc. (Wisconsin, U.S.)

  • Cardknox Development, Inc. (New Jersey, U.S.)

  • Marqeta, Inc. (California, U.S.)

  • ENTERSEKT (Stellenbosch, South Africa)

  • Discover Financial Services (Illinois, U.S.)


  • September 2021 – Cardknox Development, Inc., a payment service and payment getaway provider, announced that it has now started supporting EMVco's 3-D Secure 2.0 (3DS2) technology, a next-generation e-commerce payment security standard. During the checkout process, 3DS2 validates cardholder identities in real-time, reducing fraud and chargebacks while maintaining a positive customer experience. This technology is now accessible via a Cardknox gateway e-commerce integration as well as Cardknox's configurable online payment form, PaymentSITE.

  • September 2020 – Visa Canada announced the expansion of Click to Pay in Canadian market to enable customers to make safe, quick transactions across a variety of shops and platforms. Click to Pay is a EMV Secure Remote Commerce solution and facilitate easy and secure payment services to customers.


An Infographic Representation of 3D Secure Pay Authentication Market

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The 3D secure pay authentication market report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD million)


Type; Application; and Geography

By Type

  • Access Control Server

  • Merchant Plug-in

  • Others

By Application

  • Merchant and Payment Processors

  • Banks

By Region

  • North America (By Type, By Application, and By Country)

    • U.S.

    • Canada

    • Mexico

  • South America (By Type, By Application, and By Country)

    • Brazil

    • Argentina

    • Rest of Latin America

  • Europe (By Type, By Application, and By Country)

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Russia

    • Benelux

    • Nordics

    • Rest of Europe

  • Middle East & Africa (By Type, By Application, and By Country)

    • Turkey

    • Israel

    • GCC

    • North Africa

    • South Africa

    • Rest of the Middle East & Africa

  • Asia Pacific (By Type, By Application, and By Country)

    • China

    • Japan

    • India

    • South Korea

    • ASEAN

    • Oceania

    • Rest of Asia Pacific

Frequently Asked Questions

The market is projected to reach USD 1,539.0 million by 2028.

In 2020, the market size stood at USD 601.3 million.

The market is projected to grow at a CAGR of 12.7% during 2021-2028 forecast period.

Merchant plug-in is likely to lead the market.

Increase in number of online fraudulent activities to drive market growth.

Visa Inc., Mastercard Incorporated, The American Express Company, Broadcom Inc., Modirum, SIA S.p.A., Fiserv, Inc., Cardknox Development, Inc., Marqeta, Inc., ENTERSEKT, and Discover Financial Services are the top players in the market.

North America region is expected to hold the highest market share.

Europe is expected to grow with a remarkable CAGR.

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