Polaris issues study on 3DS payment authentication market

Wednesday 8 February 2023 11:59 CET | News

Polaris Market Research has issued a new study on the 3-D Secure payment authentication market which includes the size, trends, market dynamics, and analysis of future growth.


The report highlights that the 3DS payment authentication market size is expected to reach USD 3.49 billion by 2032, at a compound annual growth rate (CAGR) of 12.0% during the forecasted period.

Study findings on the 3DS market

Some of the key reasons behind the significant growth of the global market are those of:
  • Increased technological advancement within the payment authentication technology;

  • Digital technologies adoption for the processing of online payments;

  • And the growing number of 3DS payment authentication launches throughout the globe.

As consumer preferences shifted towards online shopping following the emergence of online channels and the increased proliferation of smartphones, this resulted in a high number of digital fraudulent activities, thus having the demand for these types of solutions gain high traction for fraud prevention.

Polaris Market Research has issued a new study on the 3-D Secure payment authentication market which includes the size, trends, market dynamics, and analysis of future growth.

The announcement exemplifies the November 2022 collaboration between Network International and Mastercard, when the two enterprises launched a 3DS authentication solution. Following this, authentication leveraging Mastercard’s Smart Interface was made available to UAE-based merchants, and further leveraging of the N-Genius online payment gateway was enabled to have ecommerce transactions processed in an effective manner.

The global growth within the digital economy and ecommerce space is thought to become of increased importance when trying to cater to the current sustainable development goals, which also creates high growth opportunities as well as challenges. Considering however that payment systems are starting to be more autonomous, the need and prevalence for automation and standardisation amongst interbank and intrabank networks between nations alike is rapidly increasing and is believed to positively contribute towards the growth of the market in the years to come.

Following the integration and proliferation of PSD2 standard in 3DS payment authentication technology, Strong Customer Authentication and Two Factor Authentication gained significant traction. This was prevalent within hotels and restaurants predominantly, as it offers what is believed to be the most secure and safe method for carrying out online payments. What is more, the latest version of the current authentication protocol, EMV 3D Secure, is used for the effective authentication of online card transactions while simultaneously addressing SCA requirements.

The highlights of the report are:
  • The merchant plug-in segment accounted significant share in 2022 due to the rapid solution adoption across several businesses and the need for cards verification methods that are innovative;

  • The merchants and payment segment is experiencing the highest CAGR due to the increased proliferation of minimising fraud and chargebacks, as well as the upgrade to 3DS 2.0;

  • North America dominated the industry, having a significant revenue share due to the increased number of online card transactions and growing prevalence of CNP frauds in regions like the US and Canada.

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Keywords: research, online fraud, 3-D Secure, fraud detection, cybersecurity, digitalisation, digital payments, ecommerce, cybercrime
Categories: Fraud & Financial Crime
Companies: Polaris Market Research
Countries: World
This article is part of category

Fraud & Financial Crime

Polaris Market Research

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