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3D Secure Pay Authentication Market Size, Share & COVID-19 Impact Analysis, By Type (Access Control Server, Merchant Plug-in, and Others) By Application (Merchant and Payment Processors and Banks), and Regional Forecast, 2023-2030

Last Updated: May 13, 2024 | Format: PDF | Report ID: FBI106283



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The 3D secure pay authentication market was USD 1.05 billion in 2022 and is projected to grow from USD 1.18 billion in 2023 to USD 2.81 billion by 2030, with a CAGR of 13.3% during 2023-2030. North America dominated the global market with a share of 46.66% in 2022.

The offerings considered in the market are Verified by Visa, Securecode by Mastercard, Safekey by American Express, Discover’ ProtectBuy, among others. 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 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.


Rise in Number of Payment Frauds during Pandemic 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. As per the Federal Trade Commission (FTC) report, consumers in the U.S. had lost around USD 246.0 million in 2020, as a result of online shopping frauds. Merchants have been moving their focus from in-store to online settings owing to COVID-19.

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 Secure Payment Platforms in Hotel Industry is contributing towards the Growth of Market Share

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.

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, and e cashless payment system is growing at an exponential rate. Digital payment transactions have increased by 104% in 2021, as compared to the year before, 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 period.


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

Over the past few decades, a number of governments and nationalized banks have developed low- and high-value payment systems that are based on security standards and proprietary communication. However, as payment systems develop independently, there is a growing need for automation and standardization within national intra-bank and inter-bank networks. As a result, human data collection and correction is frequently required, which is expected to limit the use of 3D secure services. Major corporations and banks with subsidiaries and branches can move funds to destination nations through intra-bank transactions.

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 the maximum market share as it is among the important elements of online card payment procedure that implements verification of the debit and credit card and 3D secure pay authentication. 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 application, 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.

Similarly, 3D secure pay authentication enables banks to take into consideration, factors such as customer’s behavioral history, customer’s transaction history, information about the customer’s device, and cost of the transaction.


North America 3D Secure Pay Authentication Market Size, 2022 (USD billion)

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

The global market scope is classified across five regions, namely North America, South America, Europe, Middle East & Africa, and Asia Pacific.

North America captures maximum part in the 3D secure pay authentication market share and is expected to continue its dominance in the coming years. The U.S. is the 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 seem to lead several trends, comprising mobile payment and ecommerce adoption, it is also considered among 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 August 2022, Saudi Arabia’s payment solutions provider, PayTabs had formed a strategic alliance with Swiss software expert Netcetera, offering a 3DS server and solutions, to meet PayTabs’ payment processing requirements.


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 other 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. For instance,

  • January 2022: Everlink Payment Services Inc. announced that it had obtained certification for 3D secure. As a result, it launched 3D secure payment authentication service via VISA Consumer Authentication Service (VCAS) for Visa and Mastercard card products. The company wants to cut down on CNP transaction fraud by launching the 3D Secure Payment Authentication Service.

List of the Key Companies Profiled in the Report are:

  • Visa Inc. (U.S.)

  • Mastercard Incorporated (U.S.)

  • The American Express Company (U.S.)

  • Broadcom Inc. (U.S.)

  • Modirum (Estonia)

  • SIA S.p.A. (Italy)

  • Fiserv, Inc. (U.S.)

  • Cardknox Development, Inc. (U.S.)

  • Marqeta, Inc. (U.S.)

  • ENTERSEKT (South Africa)

  • Discover Financial Services (U.S.)


  • February 2023 – The 3D Secure 2.0 SDK, which provides a full native checkout and a superior customer experience for all card transactions, was released by PayU, an India-based online payments solution provider. PayU and Wibmo, a full-stack global PayTech company owned by PayU, collaborated on the development of this EMVCo-certified offering.

  • November 2022 – In collaboration with Mastercard, Network International released its new 3D Secure authentication system. As a result of this partnership, merchants in the UAE were able to use the N-Genius online payment gateway and Mastercard's Smart Interface for authentication.

  • November 2022 – Bank Negara Indonesia (BNI) and UnionPay International (UPI) entered into a collaboration agreement, wherein, all BNI merchant customers were able to use the UnionPay Mobile QuickPass service and accept UnionPay card payments. This coordinated effort with UnionPay is expected to augment the network for UnionPay in Indonesia, giving convenient digital payment services to both consumers and merchants.

  • November 2022 – JCB Co., Ltd., joined forces with Nuvei to enable JCB payment acceptance across worldwide business sectors. This partnership provided JCB cardholders with a seamless online payment experience and increase the value of Nuvei's 50,000 merchant network. Nuvei aims to provide J/Secure(TM) 2.0, JCB's cardmember authentication program, which complies with Core Functions Specification and the EMV(R) 3-D Secure Protocol, in order to combat fraud.

  • March 2022 – AsiaPay Technology announced the availability of the 3D secure solution Xecure3D, which is compatible with EMV 3-D Secure 2.0. The Xecure3D arrangement increments security for cardholders on executing Visa installments, to a great extent.


An Infographic Representation of 3D Secure Pay Authentication Market

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The market report provides a comprehensive analysis of the market. It focuses on key aspects such as prominent companies, and leading applications of the product. Besides this, the report highlights key industry developments and offers insights into the market trends. In addition to the above-mentioned factors, the report includes several factors that have contributed to the growth of the market over recent years.




Study Period


Base Year


 Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 13.3% from 2023 to 2030


Value (USD billion)


Type, Application, and Region

By Type

  • Access Control Server

  • Merchant Plug-in

  • Others (Directory Server, etc.)

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 South America

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

    • U.K.

    • Germany

    • France

    • Spain

    • Italy

    • 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

Fortune Business Insights says that the market was valued at USD 1.05 billion in 2022.

Fortune Business Insights says that the market is expected to reach USD 2.81 billion in 2030.

Growth of 13.3% CAGR will be observed in the market during the forecast period (2023-2030)

The merchant plug-in is expected to lead during the forecast period among type.

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

Some of the top players in the market are 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.

Europe is expected to grow with a remarkable CAGR.

Lack of global standards and cross-border payments to hinder the market growth.

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