Global 3D Secure Authentication Market Research Report 2024(Status and Outlook)

Global 3D Secure Authentication Market Research Report 2024(Status and Outlook)

Report Overview

3D Secure (3-domain structure), also known as a payer authentication, is a security protocol that helps to prevent fraud in online credit and debit card transactions. The payer authentication is a three-part process, so there are three parties involved in the process: the issuer (such as Visa or MasterCard), the acquirer, and the interoperability domain (such as payment system). The 3D Secure Authentication industry can be broken down into several segments, System and Platform, Consulting Services and Solutions, etc . 3D secure authentication is a measure to prevent fraud and can be used as an additional layer of security when making card payments.

The popularity of 3D security authentication is increasing globally to enhance security. Driven by increased adoption during the global pandemic, the market trend of digital shopping and online payments has exploded, with people purchasing significantly more online. Additionally, integrating advanced technologies such as machine learning and biometrics into payment solutions is a popular trend.

The global 3D Secure Authentication market size is projected to reach US$ 2,076.05 Million by 2029 from US$ 592.24 million in 2022 at a CAGR of 20.04% during 2023-2029. Concerns about online fraud continue to escalate, with a significant increase in automated attacks as a symbol, driving the adoption of powerful payment methods such as 3D secure authentication. Merchants are faced with the dilemma of fighting fraud versus prioritizing sales, and urgently need to find secure ways to capture legitimate transactions and maximize revenue. Second, increased consumer awareness of the risks of online transactions has increased expectations for secure payment processes, consistent with the additional layer of verification provided by 3D Secure Authentication. As global e-commerce transaction volumes continue to surge, secure payment methods have become imperative, and 3D security authentication serves as a catalyst for consumer trust in online transactions. Furthermore, the proliferation of mobile and app-based transactions, coupled with the globalization of e-commerce, has enhanced the relevance of 3D secure authentication to provide standardized security and consistent user experience across geographies.

At the same time, the development challenges faced by the 3D secure payment authentication market cover many aspects. First, implementation costs are a significant barrier, with merchants required to pay transaction-related fees. Overcoming high initial installation costs is critical for widespread adoption. Additionally, alternative payment options exist, especially in systems developed by governments and state-owned banks. The authentication process in 3D Secure may lead to higher cart abandonment rates as customers seek a seamless checkout experience. The situation is further complicated by limitations in application scope, varying adoption rates around the world, and potential compatibility issues with certain devices or browsers. The launch of the 3DS 2.0 standard, while enhancing security, also requires merchants to make adjustments in data collection, risk control methods, payment process optimization, etc., increasing the friction and complexity of the payment process.

Segment by Type, the 3D Secure Authentication can be split into by Access Control Serer, Merchant Plug-in, Others. In 2022, Access Control Serer and Merchant Plug-in have occupied 55.81% and 38.91% of the market share respectively. Access Control Server's prominence can be attributed to its critical role in managing authentication processes and ensuring secure transactions. Access control servers play a central role in authenticating users, validating transactions, and enhancing overall security. On the other hand, the huge market share held by merchant plugins highlights its importance for merchants to facilitate the seamless integration of 3D secure authentication into their payment systems. Merchant plugins facilitate a smoother authentication process and reduce friction during online transactions.

According to application classification, the 3D Secure Authentication can be split into Bank, Merchants, Others. In 2022, Banks and Merchants contributed 58.06% and 36.33% of revenue to the market respectively. The strong participation of banks is mainly due to the key role they play in ensuring the security of online transactions. Banks leverage 3D Secure Authentication to enhance the security of payment processes, protecting financial institutions and their customers from fraudulent activity. The powerful authentication measures provided by 3D Security Authentication are very consistent with the strict security requirements of banking transactions, making it an indispensable solution for financial institutions. Additionally, 3D Secure Authentication is widely adopted by merchants to protect their online transactions, increase customer confidence and reduce the risk of fraud.

On basis of geography, the 3D Secure Authentication market is segmented into North America, Europe, Asia-Pacific, South America, Middle East and Africa, etc. In 2022, North America accounted for 33.00% of the 3D Secure Payment Authentication market share, It is expected to maintain its dominance in the coming years. The United States is one of the largest e-commerce markets in the world and is expected to create huge opportunities in the near future. It has a relatively simple payment environment, dominated by credit and debit cards. The country is considered home to many major international cards such as Mastercard, Visa, Discover, American Express, and Diners Club. Therefore, the integration level of 3D secure payment certification is high in North America.

The Asia-Pacific region has become the largest market with a market share of 33.49% and will maintain this position during the forecast period, expanding at a rate of 23.48%. China is the largest retail e-commerce market in the Asia-Pacific region and a driving force for mobile commerce. The most commonly used payment methods in the country are UnionPay, Alipay and WeChat Pay. In countries such as Australia, Singapore and South Korea, credit and debit cards are the most popular payment methods.

Currently, the UK is one of the few countries in the world to enable 3D secure payment authentication and improve overall transactions. The UK is a mature online shopping market, and most consumers choose bank card payment methods to purchase products. In the UAE, a significant portion of consumers choose to pay online because they believe it helps them save money.

According to our calculations, the two indicators used to measure market concentration in the 3D Secure Authentication market, CR5 and HHI, have reached 72.19% and 13.20% respectively in 2022. This means that the market concentration is not high and merchants in the market are still in fierce competition. Currently, the major players in the market include Broadcom, Adyen, Worldline, Outseer LLC, Gpayments, GMO Payment Gateway, Entersekt, Elavon, AsiaPay.

This report provides a deep insight into the global 3D Secure Authentication market covering all its essential aspects. This ranges from a macro overview of the market to micro details of the market size, competitive landscape, development trend, niche market, key market drivers and challenges, SWOT analysis, value chain analysis, etc.

The analysis helps the reader to shape the competition within the industries and strategies for the competitive environment to enhance the potential profit. Furthermore, it provides a simple framework for evaluating and accessing the position of the business organization. The report structure also focuses on the competitive landscape of the Global 3D Secure Authentication Market, this report introduces in detail the market share, market performance, product situation, operation situation, etc. of the main players, which helps the readers in the industry to identify the main competitors and deeply understand the competition pattern of the market.

In a word, this report is a must-read for industry players, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the 3D Secure Authentication market in any manner.

Global 3D Secure Authentication Market: Market Segmentation Analysis

The research report includes specific segments by region (country), manufacturers, Type, and Application. Market segmentation creates subsets of a market based on product type, end-user or application, Geographic, and other factors. By understanding the market segments, the decision-maker can leverage this targeting in the product, sales, and marketing strategies. Market segments can power your product development cycles by informing how you create product offerings for different segments.

Key Company

Broadcom

Adyen

Worldline

Outseer LLC

Gpayments

GMO Payment Gateway

Entersekt

Elavon

AsiaPay

Market Segmentation (by Type)

Access Control Serer

Merchant Plug-in

Others

Market Segmentation (by Application)

Bank

Merchants

Others

Geographic Segmentation

North America (USA, Canada, Mexico)

Europe (Germany, UK, France, Russia, Italy, Rest of Europe)

Asia-Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific)

South America (Brazil, Argentina, Columbia, Rest of South America)

The Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Rest of MEA)

Key Benefits of This Market Research:

Industry drivers, restraints, and opportunities covered in the study

Neutral perspective on the market performance

Recent industry trends and developments

Competitive landscape & strategies of key players

Potential & niche segments and regions exhibiting promising growth covered

Historical, current, and projected market size, in terms of value

In-depth analysis of the 3D Secure Authentication Market

Overview of the regional outlook of the 3D Secure Authentication Market:

Key Reasons to Buy this Report:

Access to date statistics compiled by our researchers. These provide you with historical and forecast data, which is analyzed to tell you why your market is set to change

This enables you to anticipate market changes to remain ahead of your competitors

You will be able to copy data from the Excel spreadsheet straight into your marketing plans, business presentations, or other strategic documents

The concise analysis, clear graph, and table format will enable you to pinpoint the information you require quickly

Provision of market value (USD Billion) data for each segment and sub-segment

Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market

Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region

Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled

Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players

The current as well as the future market outlook of the industry concerning recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions

Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis

Provides insight into the market through Value Chain

Market dynamics scenario, along with growth opportunities of the market in the years to come

6-month post-sales analyst support

Chapter Outline

Chapter 1 mainly introduces the statistical scope of the report, market division standards, and market research methods.

Chapter 2 is an executive summary of different market segments (by region, product type, application, etc), including the market size of each market segment, future development potential, and so on. It offers a high-level view of the current state of the 3D Secure Authentication Market and its likely evolution in the short to mid-term, and long term.

Chapter 3 makes a detailed analysis of the market's competitive landscape of the market and provides the market share, capacity, output, price, latest development plan, merger, and acquisition information of the main manufacturers in the market.

Chapter 4 is the analysis of the whole market industrial chain, including the upstream and downstream of the industry, as well as Porter's five forces analysis.

Chapter 5 introduces the latest developments of the market, the driving factors and restrictive factors of the market, the challenges and risks faced by manufacturers in the industry, and the analysis of relevant policies in the industry.

Chapter 6 provides the analysis of various market segments according to product types, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.

Chapter 7 provides the analysis of various market segments according to application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.

Chapter 8 provides a quantitative analysis of the market size and development potential of each region and its main countries and introduces the market development, future development prospects, market space, and capacity of each country in the world.

Chapter 9 introduces the basic situation of the main companies in the market in detail, including product sales revenue, sales volume, price, gross profit margin, market share, product introduction, recent development, etc.

Chapter 10 provides a quantitative analysis of the market size and development potential of each region in the next five years.

Chapter 11 provides a quantitative analysis of the market size and development potential of each market segment (product type and application) in the next five years.

Chapter 12 is the main points and conclusions of the report.