3D Secure Pay Authentication Market To Grow Exponentially; Increasing Number Of Fraudulent Activities Is Expected To Increase The Implementation Of 3D Authentication In Payments

The global 3D secure pay authentication market size is estimated to display strong growth by reaching USD 2.81 billion by 2030. Fortune Business Insights™ in its report titled “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” observes that the market size in 2022 stood at USD 1.05 billion and is expected to reach 1.18 billion in 2023. The market is expected to witness a strong CAGR of 13.3% during 2023-2030. Increasing number of fraudulent activities is expected to increase the implementation of 3D authentication in payments. In order to assist e-commerce companies and merchants safeguard their assets from online frauds, key players have been launching 3-D Secure (3DS) online payment solutions. The pandemic also shifted the way of interaction between merchants and customers. 

Cardknox Development, Inc. Announced That It Has Started Supporting EMVco's 3-D Secure 2.0 (3DS2) Technology

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

Upshift In The Adoption Of 3DS2 Standard Among Companies And Payment Service Companies

COVID-19 pandemic resulted in the fraud scams such as payment and card frauds, malicious activities, among others. According to FraudSight data by FIS, between March to April 2020, there has been an 78% increase in card-not-present activities. To mitigate frauds, all online payment services firms operating in Europe were forced to incorporate 3DS2 into their checkouts. There was an upshift in the adoption of 3DS2 standard among companies and payment service companies.

Fast Adoption of New Technologies Amongst Hotels and Restaurants to Increase the Service Demand

Growing adoption of secure payment platforms in the hotel industry is anticipated to drive 3D secure pay authentication market growth. Hotels and restaurants have been fast adopting new technologies such as computerized table service and app-based ordering. Hotels, resorts, and tourism centers have been adapting to online transactions and payments for room reservations and other services. These activities are prone and vulnerable to online fraud activities. Integration of PSD2 standard will make the compulsion for forced authentication or Strong Customer Authentication (SCA).

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Key Market Players Have Been Innovating Their 3D Suites and Platforms

Key players of the market have been focusing on developing and innovating their 3Ds solution suites and platforms. This is due to increasing rate of digitalization. Major companies have been providing innovative solutions for industries and users to handle sustainability-based customers. In November 2021, Bankograph partnered with Modirum to provide EMV 3DS 2.2 and PCI-certified access control server customers in Indochina. Cambodia Asia Bank (CAB) chose the Modirum ACS, to comply with the most recent EMV 3DS protocol developments while also significantly reducing online fraud.

Key Industry Development

• November 2022: JCB Co., Ltd., joined Nuvei to provide access to JCB payment acceptance across business sectors. The partnership assisted seamless online payment experience with JCB cardholders. This will also increase the value of Nuvei's 50,000 merchant network.

List of Key Companies Profiled in the Market Report:

• 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.)

Further Report Findings

• The market in North America stood at USD 0.49 billion in 2022 and captures the maximum share as U.S. has the largest ecommerce sector. The country is home to major international cards such as Mastercard, Visa, Discover, American Express, and Diners which is expected to drive 3D secure pay authentication market share.
• In Europe, U.K. is has the most mature market for online shopping and users opt for bank-linked card payments for buying products. Countries such as Finland, Sweden, Denmark, and Norway have the acceptance rate of 3D secure.

Table of Segmentation