Payment security is a term used to describe a collection of security products and services created to reduce the risk of data breaches, stop financial fraud, and stop unauthorized transactions. Additionally, it uses data encryption, firewalls, and data loss prevention (DLP) protocols to secure all kinds of online financial transactions. The industry's notable growth in the banking, financial services, and insurance (BFSI) sectors are producing a favorable picture of the market. Payment security aids banks in streamlining and automating financial management procedures, boosting operational effectiveness and maintaining correct records throughout recurring activities like invoicing and reconciliation. Additionally, wireless networks in computing devices for payment facilitation and the growing usage of digital payment methods encourage market expansion. Several technological developments, including the use of artificial intelligence (AI) and machine learning (ML) solutions, as well as the connection of connected devices to the Internet of Things (IoT), are also boosting the market expansion.
COVID-19 IMPACT
The COVID-19 pandemic epidemic has boosted the use of digital payment methods, which has greatly accelerated the expansion of the payment security business. Real-time payments are predicted to see exponential growth due to the COVID-19 pandemic, according to research released by the ACI in April 2020, with more than a trillion transactions and a compound annual growth rate of about 23% between 2019 and 2024. Numerous banks' digital transformation plans have advanced significantly due to the sudden upsurge in digital adoption. Banking leaders now see online banking services as a crucial tool for boosting customer retention and expanding revenue streams through individualized services.
DRIVING FACTORS
Increased Data Breach Frequency Will Drive Market Growth
Businesses use payment security to visualize data based on hidden correlations and patterns and gain new insights. An increase in data breaches is anticipated to accelerate the adoption of secure payment options. Its adoption is also anticipated to be boosted by quick advancements in secure payment technologies. Wallets, Unified Payment Interfaces (UPI), and other digital payment methods are expected to become increasingly popular, increasing the demand for secure payment methods. In addition, this industry is anticipated to benefit from the expanding use of Big Data, 5G services and cloud technologies. The market for payment security may grow as a result of these factors.
RESTRAINING FACTORS
Adaptation of Advanced Technology May Hamper the Market Growth
Like every other big firm currently operating, the global payment security market has several restrictions. Many businesses are currently making the switch to using digital payment methods. However, the pace of adoption of modern technology is not at all what it should be. For businesses in the payment security industry, this poses a sizable barrier to entry. The inability of businesses to look into security problems and take action to strengthen the platform is another barrier for the Payment Security industry. Numerous organizations are unable to achieve both, which is a concern. Even if government requirements drive research and growth in the payment security industry, stricter rules typically act as a limitation.
SEGMENTATION
By Industry Vertical
Based on industry vertical, the payment security market is segmented into retail, travel and hospitality, healthcare, IT and telecom, BFSI, media and entertainment and others. The retail category dominated the market in 2021. Government support, the widespread use of smartphones, and online applications are all driving the adoption of mobile payments in retail, particularly in the e-commerce sector. Security solution demand will probably rise due to the promise of an improved shopping experience.
Besides, the travel and hospitality category is anticipated to grow significantly over the forecast period. Increased consumer spending across the board can be credited to this. Additionally, it is anticipated that the popularity of e-wallets and mobile payments among millennials will significantly boost the payment security market.
By Organization Size
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By organization size, the market is segmented into large enterprises and small and medium-sized enterprises. The large enterprise category dominated the market in 2021. Large enterprise use of high-value transactions is causing a demand for payment security solutions. As a result, several businesses have begun creating security solutions to protect their payments and transactions.
Besides, the small and medium-sized enterprises category is anticipated to grow significantly over the forecast period. These solutions, including encryption and tokenization, are being adopted by small and medium-sized businesses more frequently. Due to their vulnerability to cyberattacks and the loss of sensitive documents and financial information, SMEs must emphasize payment security equally.
REGIONAL INSIGHTS
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North America is projected to hold the largest share of the payment security market over the forecast period. The demand for security solutions is rising due to the rapid rise of real-time payments in North America, which has shown significant year-over-year growth. Furthermore, introducing cutting-edge technology-enabled mobile payment services based on these security solutions is another area of attention for major North American mobile payment market companies, such as Apple, Inc., Samsung, and others.
On the other hand, the Asia Pacific payment security market is anticipated to grow significantly over the forecast period. Consumers are increasingly using online digital payments, which helps the market expand in this region. For instance, the APAC region is moving toward online digital payment methods at a rate of about 60%. Expanding the retail & consumer goods startup scene in nations like China, India, and Japan contributes to APAC's growth. Digital payments are being adopted more widely throughout the region due to consumer acceptance of mobile payments. One of the key factors driving the regional market's growth is China's booming retail sector.
LIST OF KEY COMPANIES PROFILED:
- Systems LLC (U.S.)
- Braintree (U.S.)
- Cybersource (U.S.)
- Elavon (U.S.)
- Ingenico (France)
- Broadcom, Inc. (U.S.)
- Thales Group (France)
- Shift4 Payments, LLC (U.S.)
- Signifyd (U.S.)
- TNS, Inc. (U.S.)
- Tokenex (U.S.)
- SISA Information Security Pvt. Ltd. (India)
- Stripe (U.S.)
- Geobridge Corporation (U.S.)
- MasterCard (U.S.)
- Verifone Systems Inc. (U.S.)
KEY INDUSTRY DEVELOPMENTS:
- February 2022: Outseer Emerging Payments is a strategic development step for the company. Outseer announced its first expansion outside its payment authentication solution, Outseer 3D Secure, enabling growth and client value beyond conventional card-not-present (CNP) transactions.
- September 2021: PayPal unveiled its app, which would provide users access to all of their accounts in one place and give them control over their finances. The organization may be able to improve its service offerings and boost its brand image using this method.
REPORT SCOPE AND SEGMENTATION
| Attributes | Details |
| Study Period | 2016-2028 |
| Base Year | 2021 |
| Estimated Year | 2022 |
| Forecast Period | 2022-2028 |
| Historical Period | 2016-2020 |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Offerings, Platform, Transportation Mode, Industry Vertical, Organization Size, and By Geography |
| By Offering |
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| By Platform |
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| By Transportation Mode |
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| By Industry Vertical |
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| By Organization Size |
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| By Region |
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