The global market for 3D secure authentication was valued at approximately US$ 557.9 million in 2020 and is anticipated to grow to US$ 1,303.5 million by 2028, reflecting a compound annual growth rate (CAGR) of 11.4% from 2021 to 2028.
3D Secure, often recognized under various brand names such as MasterCard Identity Check, Visa Secure, Diners Club ProtectBuy, and American Express SafeKey, is an authentication technology that requires customers to undergo an additional verification step with their card issuer during payment transactions. This technology is designed to safeguard users against fraud and other illicit activities, ensuring that online payments are conducted securely. The global adoption of 3D secure authentication is on the rise, driven by the need to reduce fraud and enhance the safety of online shopping experiences. This growing trend is prompting various regions to implement this technology. For example, in Europe, regulations mandating strong customer authentication are in place for card payments, necessitating the use of 3D secure methods. While the implementation of 3D Secure is optional in many parts of the world, it remains a valuable tool for fraud prevention.
The global 3D secure authentication market is categorized based on components and end users. In terms of components, the market is divided into solutions and services, with the solutions segment dominating the market in 2020. Regarding end users, the market is segmented into banks, merchants, and payment processors, where the merchant and payment processor segment led the market share. The 3D secure authentication market is further divided into five key regions: North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and South America (SAM). North America was the leading region in the 3D secure authentication market in 2020.
The COVID-19 pandemic has significantly impacted the market, leading to a surge in e-commerce transactions and consequently an increase in fraudulent activities. In response, payment service providers (PSPs), merchants, and banks are increasingly adopting the 3D secure authentication framework, which is driving the market's growth. The pandemic has also accelerated digital transformation within banks, allowing customers to make online payments more easily. This shift is expected to enhance the adoption of authentication technologies. The growing preference for digital solutions in banking presents substantial opportunities for the market to expand and promote authentication technologies at an accelerated pace.
The overall size of the 3D secure authentication market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach also aimed to provide a comprehensive overview and forecast of the 3D secure authentication market across all segments and regions. Additionally, numerous primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants in this research included industry professionals such as Vice Presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the 3D secure authentication sector.
Key players in the 3D secure authentication market include Netcetera, GPayments Pvt. Ltd., ASEE Group, AsiaPay Limited, Modirum, mSignia, Inc., Ravelin Technology Ltd, RS Software, UL, LLC, and iZealiant Technologies Pvt. Ltd. These companies are at the forefront of developing and implementing 3D secure authentication solutions, contributing to the market's growth and evolution.