Payment Security Market Size - By Component (Solution [Encryption Tokenization, Fraud Detection & Prevention, Biometric Authentication], Services), Organization Size (SMEs, Large Organization), End-user, Regional Outlook & Global Forecast, 2024 - 2032

Payment Security Market Size - By Component (Solution [Encryption Tokenization, Fraud Detection & Prevention, Biometric Authentication], Services), Organization Size (SMEs, Large Organization), End-user, Regional Outlook & Global Forecast, 2024 - 2032

Payment Security Market Size

Payment Security Market size was valued at USD 23.4 billion in 2023 and is estimated to register a CAGR of 15% between 2024 and 2032. The evolving fintech landscape is driving the market growth. New fintech companies are pioneering innovative security solutions such as biometrics, tokenization, and fraud detection & prevention. Their agility and digital expertise enable the development of robust security measures that can adapt to emerging threats. For instance, in July 2023, Trustmi launched an intuitive & end-to-end solution that helps businesses protect their bottom line by eliminating losses from cyberattacks, internal collusion, and human errors, thereby ensuring that payments go to the right place.

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Cloud-based organization sizes are fueling the payment security market expansion. They offer scalable & cost-effective solutions for data storage, processing, and security. Cloud services enable real-time threat monitoring, data encryption, and rapid response to emerging risks. For instance, in October 2023, Discover Global Network, the payments brand of Discover, launched a cloud-based network tokenization organization size to provide companies with a scalable & adaptable tokenization solution, which helps elevate the security & efficiency of payment processes. It exemplifies how businesses embrace cloud technologies to fortify their payment security measures, thereby responding to evolving threats and consumer expectations.
 

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High-profile data breaches are a significant challenge in the network security market. These breaches not only compromise sensitive information but also erode consumer trust. In response, organizations face growing pressure to invest in robust security measures. The increasing complexity and frequency of cyberattacks put immense strain on security professionals to stay ahead of threats. It is a perpetual race to safeguard networks, making data breaches a persistent concern in the ever-evolving network security landscape.

COVID-19 Impact

The COVID-19 pandemic had significant impacts on the payment security market. With a surge in online transactions and remote work, there has been increase in cyber threats and fraudulent activities. This has accelerated the adoption of payment security solutions, as businesses and financial institutions prioritize safeguarding sensitive data. The pandemic also emphasized the importance of contactless and digital payment methods, further emphasizing the need for secure payment technologies.

Payment Security Market Trends

Contactless payments are an emerging trend in the payment security industry. This technology allows consumers to make transactions by simply tapping their cards or mobile devices, thereby reducing the need for physical contact. As the world adapts to a more digital & touchless environment, the adoption of contactless payments will accelerate. This growing adoption will provide robust protection against potential threats, ensuring the safety of transactions and maintaining consumer trust.

For instance, in June 2023, the Netherlands achieved a significant milestone with the nationwide rollout of OVpay, a contactless public transport payment system. This development allows commuters to conveniently use their debit cards, credit cards, or digital wallets for tap-in & tap-out procedures.

Biometric authentication is an emerging trend in the payment security market, providing a higher level of protection and convenience. This technology uses unique physical or behavioral characteristics, such as fingerprints, facial recognition, or iris scans, to verify a user's identity. As cyber threats evolve, biometrics will offer a more secure means of transaction verification. The adoption of biometric authentication is on the rise as it ensures secure payments and reduces fraud while simplifying the user experience, thus making it a pivotal trend in the market.

Payment Security Market Analysis

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Based on component, the solution segment held over 60% of the market share in 2023. With the evolving landscape of cyber threats and the increasing complexity of payment processes, businesses are investing in robust security solutions. For instance, in August 2023, Mastercard launched the ALT ID solution for enhanced online payment security. The solution is designed for guest checkout transactions, providing an additional layer of security for online payments. This segment encompasses tokenization, encryption, secure authentication, and fraud detection. As digital payment methods expand, the demand for comprehensive and adaptable security solutions will increase, driving the growth of this segment.

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Based on organization size, the SMEs segment accounted for 40% of the payment security market share in 2023. SMEs are increasingly adopting digital payment solutions and online commerce, making them attractive targets for cyber threats. To safeguard their transactions and customer data, SMEs are investing in cost-effective & user-friendly security solutions tailored to their specific needs. As more SMEs recognize the importance of payment security, this segment will expand, presenting opportunities for security providers to cater to the evolving demands of smaller businesses.

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North America payment security market recorded around 30% of the revenue share in 2023. The increasing adoption of digital payment methods, rising cybersecurity awareness, and strict regulatory frameworks are driving the demand for advanced security solutions in the region. For instance, in October 2023, Orum, an API solutions provider, launched Verify, a service leveraging the Federal Reserve's instant payment rail, FedNow. Verify is designed to validate the status of both consumer & business bank accounts in the U.S., thereby ensuring their legitimacy before payment initiation.

With many businesses and consumers relying on electronic payments, the need for robust security measures is paramount. As a result, the market in North America is expected to witness substantial expansion, presenting lucrative opportunities for security providers and technology companies.

Payment Security Market Share

Ingenico Group, (Apollo Funds) and Cybersource, (Visa Inc.) dominate the market due to their well-established reputation, extensive global networks, and comprehensive offerings. Ingenico Group offers robust portfolio of payment solutions, including secure point-of-sale (POS) systems and payment processing services, earning the trust of businesses and financial institutions. Cybersource leverages its industry stature and expertise to provide cutting-edge fraud prevention and payment security solutions. Both companies benefit from strong brand recognition, a wide customer base, and a commitment to innovation, positioning them as market leaders in the industry.

Payment Security Market Companies

Major companies operating in the payment security industry are

• Ingenico Group (Apollo Funds)
• Cybersource (Visa Inc.)
• Braintree (Paypal.)
• Elavon Inc. (U.S. Bancorp)
• Mastercard
• Fiserv Inc
• Thales Group

Payment Security Industry News

• In July 2023, TAC Security launched the ESOF PCI ASV Tool. The innovative Payment Card Industry-Approved Scanning Vendor (PCI ASV) tool is integrated with the existing ESOF solution. This advancement is set to bolster the capabilities in safeguarding payment information and ensuring compliance with the industry standards, further strengthening the online payment security measures.

The payment security market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Component

• Solution
• Encryption
• Tokenization
• Fraud detection & prevention
• Biometric authentication 
• Services

Payment Security Market, By Organization Size, 2018 – 2032

• SMEs
• Large organization

Payment Security Market, By End-user, 2018 – 2032

• BFSI
• IT & telecom
• Retail & e-commerce
• Healthcare
• Government
• Others

The above information is provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Southeast Asia
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa

Frequently Asked Questions (FAQ)

How big is the payment security market?

The market size of payment security reached USD 23.4 billion in 2023 and is set to grow at 15% CAGR between 2024 and 2032, backed by the evolving fintech landscape.

How are the SMEs driving the payment security industry growth?

The SMEs segment accounted for a market share of around 40% in 2023, as SMEs are increasingly adopting digital payment solutions and online commerce, making them attractive targets for cyber threats.

What are the factors influencing North America payment security market growth?

North America market share was around 30% in 2023, due to the increasing adoption of digital payment methods, rising cybersecurity awareness, and strict regulatory frameworks.

Who are the key players in the payment security landscape?

Ingenico Group (Apollo Funds), Cybersource (Visa Inc.), Braintree (Paypal.), Elavon Inc. (U.S. Bancorp), Mastercard, Fiserv Inc, and Thales Group.