"Smart Strategies, Giving Speed to your Growth Trajectory"

Payment Security Market Size, Share & COVID-19 Impact Analysis, By Solution (Tokenization, Encryption, and Fraud and Prevention), By Enterprise Type (Small & Medium Size Enterprise and Large Enterprise), By Industry (BFSI, Retail, Healthcare, IT & Telecom, Travel & Hospitality, Others (Media & Entertainment, and Others)), and Regional Forecasts, 2022-2029

Region : Global | Format: PDF | Report ID: FBI103748



Play Audio Listen to Audio Version

The global payment security market size was valued at USD 19.82 billion in 2021 and is projected to grow from USD 22.69 billion in 2022 to USD 63.96 billion by 2029, exhibiting a CAGR of 16.0% during the forecast period. North America dominated the global market with a share of 36.98% in 2021.

The global COVID-19 pandemic has been unprecedented and staggering, with payment security experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global market exhibited a moderate growth of 13.5% in 2020 as compared to 2019.

In the scope, we have considered payment security solutions provided by key players such as Paypal Holdings, Inc., Thales, Cybersource, PayU, and Tokenex, among others.

Payment security involves the process businesses adopt to visualize and gain insights based on correlation, hidden patterns, the market’s changing trends, and more. For instance, in May 2022, Transaction Network Services (TNS) unveiled its recent Point of Sale (POS) terminals at PACE in Adelaide, Australia, part of the TNS accepted product collection for the parking industry. These POS devices provide a secure payment experience for consumers who want to pay by card, digital or contactless wallet in various areas such as retail stores, parking lots, electric vehicle charging, and vending machines.


Increased Adoption of Digital Payments amid the COVID-19 Pandemic Strengthened Market Growth

The COVID-19 pandemic surged frauds, cyberattacks, ransomware attacks, and money laundering, among others. Since COVID-19 hit the world in 2020, there has been an exponential increase in digital payment fraud, owing to the increasing adoption of this technology.

Individuals and corporates are adopting electronic payment and other online digital platforms owing to lockdown restrictions. Online digital payment modes, such as mobile payment, online transactions, digital apps, mobile/digital money wallets, and others, are widely adopted by individuals, government sectors, and corporates. During the period of lockdown, usage of e-wallets increased by 40%. With the increased use of digital transactions, cybercrime attacks also increased by 86%.

With increase in online digital payment platforms, new opportunities are emerging for fraudsters to execute cyber-attacks. This will increase the demand for payment security for online digital payments. Owing to this, an unexpected spike is observed in these solutions in developing nations. This will likely raise the mobile payment transaction and boost the adoption of these solutions globally.

A survey of fraud auditors around the world in August 2020 found that the risk of various types of fraud has increased since the start of the coronavirus pandemic. In May 2020, 24% of respondents reported a significant increase in their risk of payment fraud. Additionally, 47% of respondents expect the risk of payment fraud to increase significantly over the next 12 months.


Request a Free sample to learn more about this report.

Increasing Awareness of Contactless Payments to Aid Payment Security Market Growth

Technology is transforming and touching every aspect of our lives and has compressed how we shop and pay. There has been a significant shift to e-commerce and a rise in digital payments. Further, the number of users adopting contactless payments has increased in the last five years to meet growing consumer demand. From 1.2 million in 2015 to now, there have been over 8 million users. Thus, innovative payment platforms are driving the digital payments revolution further.

Despite the prolonged closure of many stores throughout various lockdowns to inhibit the extent of COVID-19, the significance of contactless payments increased by 7% in 2020 as compared to 2019. For instance,

  • According to the U.K. Finance Data 2020, the use of contactless payments increased by 29% in the U.K. grocery stores.

  • According to RTI research, 30% of consumers have started utilizing contactless payment methods, such as smartphones, NFC cards, and wearables, since the outbreak of COVID-19. 70% of them said they would continue to use this contactless payment method after the pandemic is over.

  • According to MasterCard Data warehouse 2020, there was over 40% growth in contactless payments worldwide in Q1 2020. Additionally, 80% of contactless transactions are under USD 25, a range typically dominated by cash.

Thus, the above factors in contactless payments are considered trending factors in the market.


Increasing Frequency of Data Breaches and Advanced Technology in Payment Security to Drive Market Growth

One of the main factors driving the growth of the security industry is the growing frequency of data breaches. As the number of data breaches increases, money is also lost. Thus, as data breaches increase, the demand for solutions increases. For instance,

  • In August 2020, Juspay, a payment service provider that processes transactions for online giants, such as Swiggy and Amazon, admitted to a data breach. The breach compromised approximately 3.5 million records containing masked card numbers and personal information.

Additionally, the adoption of advanced technologies, such as 5G, Big Data, and the cloud, by key market players is expected to drive the global market. These major players are partnering with other market players to add advanced technologies to their security solutions portfolio. For instance,

  • In July 2022, TokenEx, a cloud tokenization and payment optimization provider, partnered with Visa, a global provider of digital payments, to become an authorized cloud-based network tokenization partner for Visa. As part of its collaboration with Visa, TokenEx has chosen Token ID, which supports regional payment systems, banks, merchants, clearinghouses, and other payment participants.


Security Concerns and Lack of Skilled Professionals to Impede Market Growth

Security concerns include phishing scams, hacking tools, unauthorized access, and exposed mobile wallets, which can risk users' data and information. It is also challenging to determine the kind and level of user data protection.

Companies still face data security concerns and lack of skilled professionals, restraining market growth. For instance,

  • According to a PEW survey, U.S. consumers stated that mobile payments were “poorly protected” (38%) than prepaid (28%), debit (22%), or credit cards (9%).


By Solution Analysis

Fraud and Prevention Segment to Dominate Owing to Rising Concerns Regarding Payment Fraud

Based on solution, the payment security market is segmented into tokenization, encryption, and fraud and prevention.

Among these solutions, the fraud and prevention segment dominated the global market in 2021. The fraud and prevention segment is estimated to witness high growth during the forecast period. Payment fraud has also increased in recent years as sales via digital channels have reached new heights.

  • According to research by Outseer and Aite-Novarica Group, payments through digital channels increased to USD 4.2 trillion in 2020. Unfortunately, scammers are taking full advantage of this change.

Therefore, increasing payment fraud surges the demand for fraud and prevention solutions.

By Enterprise Type Analysis

Large Enterprise to Lead Owing to the Deployment of Advanced Solutions for Security Business Extension 

Based on organization size, the payment security market is bifurcated into SME and large enterprise.

Among these, the large enterprise segment held a major market share in 2021 and the SME segment is predicted to be the fastest growing segment in the coming years.

Due to increased payment fraud among SMEs, the demand for this security is growing among SMEs. Security solutions are gaining traction among SMEs as around 95% of credit card breaches come from SMEs.

By Industry Analysis

To know how our report can help streamline your business, Speak to Analyst

Retail Sector to Dominate Attributable to Increased Online Payment Application Usage 

Based on industry, the  payment security market is divided into IT & telecom, healthcare, BFSI, retail, travel & hospitality, and others (media & entertainment and others).

Among these, the retail segment dominated the market in 2021 and is estimated to grow with the highest CAGR during the forecast period.

The adoption of mobile payments in retail, especially in the e-commerce sector, is increasing due to government support, smartphone penetration, and online application usage. The promise of a better shopping experience will likely increase the demand for security solutions.


North America Payment Security Market Size, 2021 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample

Geographically, the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America dominated with the highest global payment security market share in 2021. As real-time payments in North America are increasing rapidly, with significant year-over-year growth, there has been an increase in the number of payment frauds, and thus the demand for security solutions is increasing.

In North America, the penetration of digital payments reached 78% in 2020 as more than half of consumers shifted from in-store shopping to online shopping due to the pandemic. This has led to an increase in digital payment transactions, which has increased the risk of payment fraud. 

Additionally, in North America, leading players in the mobile payment industry, including Samsung, Apple, Inc. and others are focusing on introducing advanced technology-enabled mobile payment services built on these security solutions. 

The Asia Pacific region is anticipated to grow with a remarkable CAGR during the forecast period. The rising adoption of online digital payment among consumers in Asia Pacific aids market growth. For instance, around 60% of the APAC population is shifting to online digital payment options. Digital payments are increasing at over 30% per year, according to Kaspersky’s Digital Payments report. Further, the rapid proliferation and adoption of digital payments across several industries, such as retail, hospitality, and others, are surging the demand for payment security. According to Kaspersky’s Digital Payments Report in 2021, more than 46.0%, which is 1.8 billion people of the Asia Pacific region’s online population use an e-wallet regularly. This region uses several online platforms such as Kakao, Paytm, Grab, Line, Gojek, Apple Pay, Stocard, and Samsung Pay.

Further, several leading European players are expanding and developing security solutions to remain competitive. The increased use of contactless payments is also driving the European market. For instance, according to Elavon's survey, around 48% of people in the U.K. said they have started using contactless payment methods or are using them more frequently due to the pandemic. For example, Aldi, a significant supermarket chain in the region, is testing an app that allows shoppers to pay with automated checkout. The overall use of digital payments in Europe is estimated to grow by 70% between 2020 and 2025.

The payment security market growth in the Middle East and South America is due to the increasing demand for advanced security solutions systems to detect and identify cyber-attacks during online payments and transactions. The adoption of mobile payment services, including online payment, mobile banking, mobile wallet transactions, USSD/STK, and SMS has significantly boosted the possibility of occurrences of cyber fraud frequently. To deal with the rising fraud incidents, key market players in the industry are focusing on developing mobile banking applications based on advanced payment security solutions.


Strategic Acquisition to Boost the Market Expansion of Key Players

Leading companies offer payment security solutions across all businesses. Key market players are creating new solutions, updating tools and technologies, and expanding their scope to enhance their technological capabilities. Key players focus on increasing their market share and customer reach through strategic acquisitions. For instance,

August 2022: Bluefin partnered with Etix for Payment Processing and PCI-Validated Point-to-Point Encryption. Etix is a global ticketing service provider for the sports, entertainment, and travel industries and has a presence in 40 countries.

List of the Key Companies Profiled:


  • July 2022: Bluefin, a tokenization and encryption technology provider that secures payments and sensitive data, partnered with healthcare payment software provider Waystar to provide advanced payment security for healthcare payments. Additionally, the partnership offers Bluefin's PCI-validated point-to-point encryption solution and payment gateway via Waystar's software.

  • February 2022: Outseer has taken a strategic development step with Outseer Emerging Payments. The announcement marks Outseer's first expansion beyond Outseer 3D Secure, the payment authentication service, enabling growth and customer value beyond traditional card-not-present (CNP) transactions.

  • November 2021: Global technology company Thales partnered with First Tech. This partnership helped SWAP, a venture-backed financial services provider, launch a modern digital payments infrastructure. This modern payment security infrastructure with Thales to SWAP accelerates its market transition.

  • September 2021: PayPal launched a new PayPal app. It's a personalized, all-in-one app that gives customers the perfect place to manage their financial lives. The app is the central location for PayPal customers to manage bill payments, get paid up to two days in advance with the new direct deposit feature from its banking partners, manage gift cards, and earn rewards.

  • February 2021: Cybersource announced a partnership with payments company Planet to launch a new digital payments platform for European merchants. The service offers the ability to streamline complex digital payments in the hospitality, retail, food, and beverage industries. The platform also provides access to online payment methods and integration with Planet's e-commerce platform.


An Infographic Representation of Payment Security market

To get information on various segments, share your queries with us

The research report includes prominent areas across the globe to get a better knowledge of the industry. Furthermore, it provides insights into the most recent industry and market trends as well as payment security market analysis of technologies adopted quickly on a global scale. It also emphasizes some of the growth-stimulating restrictions and elements, allowing the reader to obtain a thorough understanding of the industry.




Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



Value (USD)


By Solution, Enterprise Type, Industry, and Region

By Solution

  • Tokenization

  • Encryption

  • Fraud and Prevention

By Enterprise Type

  • Small & Medium Size Enterprise

  • Large Enterprise

By Industry

  • BFSI

  • Retail

  • Healthcare

  • IT & Telecom

  • Travel & Hospitality

  • Others (Media & Entertainment and Others)

By Region

  • North America (By Solution, Enterprise Type, Industry, and Country)

    • U.S.

    • Canada

    • Mexico

  • South America (By Solution, Enterprise Type, Industry, and Country)

    • Brazil

    • Argentina

    • Rest of South America

  • Europe (By Solution, Enterprise Type, Industry, and Country)

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Russia

    • Benelux

    • Nordics

    • Rest of Europe

  • Middle East & Africa (By Solution, Enterprise Type, Industry, and Country)

    • Turkey

    • Israel

    • GCC

    • North Africa

    • South Africa

    • Rest of Middle East & Africa

  • Asia Pacific (By Solution, Enterprise Type, Industry, and Country)

    • China

    • India

    • Japan

    • Southeast Asia

    • ASEAN

    • Oceania

    • Rest of Asia Pacific

Frequently Asked Questions

The market is projected to reach USD 63.96 billion by 2029.

In 2021, the market stood at USD 19.82 billion.

The market is projected to grow at a CAGR of 16.0% over the forecast period (2022-2029).

Fraud and prevention solution segment is likely to lead the market.

Paypal Holdings, Inc., Thales, Bluefin Payment Systems LLC, and PayU are the market's top players.

North America is expected to hold the highest market share.

Asia Pacific is expected to grow with the highest CAGR.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • Nov, 2022
  • 2021
  • 2018-2020
  • 150


  • $4850

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.