Major growth forecasted for the mobile payment security software market

The research assessed the market size, trend, and forecast for 2023-2029, and includes data and evidence that serves as a practical resource document for understanding market trends, growth drivers, opportunities, and upcoming issues.

According to the study, the global mobile payment security software market is expected to see a compound annual growth rate (CAGR) of 15.8% during the analysed period of 2023-2028. Moreover, the market size is projected to increase by USD 37.4 billion, compared to the current amount of USD 26.4 billion.

Mobile payment methods have considerably risen in popularity in recent years, with the sector reaching USD 53 billion in 2022 and 25.7% of the worldwide population using them. By the end of 2030, the market is projected to increase to USD 607.9 billion, the growth being led by a CAGR of 35.5% and driven by companies such as Samsung Group, Apple, Amazon, PayPal, and Mastercard.

The COVID-19 pandemic  majorly influenced the payment industry, as before this period only about 900 million individuals used mobile wallets. However, between March and December 2020, the global adoption increased to 1.48 billion users, with mobile payments accounting for 44.5% of all ecommerce transactions in 2020.

Yet, the surge in mobile payment methods use has also increased the fraudulent activities in this sector. The US saw a significant increase in mobile fraud, with mobile payments accounting for 39% of all fraudulent transactions in the country in 2021. Fraudsters tend to target older mobile devices with outdated operating systems and application versions, as, according to studies, smartphones produced before 2016 have three times as many fraud attempts against them as more recent, updated devices.

HFT MI’s study refers to this market as the industry that develops, deploys, and manages software solutions designed to secure mobile payment transactions and protect sensitive financial information during mobile payment processes. As the mobile payment market has been constantly expanding in recent years, both users and businesses have rising concerns regarding the security of their mobile transactions.

The mobile payment security software market has been driven by the growing cyber risks, as well as by the increased smartphone and internet access demand. However, the market trend is impacted by continuously developing cyber dangers, interoperability, and higher costs for businesses, especially for SMEs.

Still, the growth of this market is encouraged by the more prevalent use of biometric authentication, real-time fraud detection with AI and machine learning, and the implementation of tokenisation, encryption, and NFC. 

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