According to the Market Statsville Group (MSG), the global 3d secure identification market size is expected to grow from USD 723.61 million in 2022 to USD 2,566.99 million by 2033, growing at a CAGR of 12.2% from 2023 to 2033. The increasing adoption of 3D secure techniques across various end-users and rise in security against fraud loss and misuse of credit/debit cards are the factors that contribute to the growth of the market over the forecasting period across the globe.

In order to achieve the Sustainable Development Goals (SDGs), the digital economy and e-commerce are becoming increasingly crucial, bringing new opportunities as well as new obstacles. The pandemic has shifted how merchants communicate with customers and complete activities, which has had a direct impact on the e-commerce industry. As the number of online sales grows, so does the number of online payment frauds in the e-commerce industry. In addition, important players are offering 3-D Secure (3DS) online payment systems to enable e-commerce enterprises and merchants to better protect their assets from online fraud. Furthermore, emergence of 3D secure 2.0 and high prospects in Asian economies are further projected to provide plenty of growth opportunities to the 3D secure authentication technology providers.

Definition of the Global 3D Secure Identification Market

3D secure identification is a safe and secure online payment service for Visa and MasterCard cards. 3D Secure is widely utilized in the EU, Australia, Mexico, Brazil, India, Singapore, and other nations. It lowers the risk of fraud and makes online purchasing and ecommerce much safer. For instance, 3D Secure Authentication is not widely used in the United States, where bank card fraud is four times higher than in the EU.

Customers must complete an additional stage of authentication with their card issuer bank when making a payment using this authentication mechanism. The system protects the end user from fraud and other illicit actions while also ensuring the security of payments. The use of 3D secure authentication is increasing globally, with the goal of reducing fraud and making online commerce safer. As a result of this increase, areas are being pushed to adopt this technology. For instance, in Europe, a strong customer authentication regulation is needed to use 3D security for the card payments. Despite the fact that 3D Secure authentication technology is optional in the majority of regions throughout the world, it can still be utilized to combat fraud.

COVID-19 Impact on the Global 3D Secure Identification Market

The COVID-19 had a significant impact on the growth of the market. COVID-19 has negatively affected the market growth in 2020, due to the complete lockdowns in various economies. Owing to numerous uncertainties, including the transmissibility, severity, duration, and resurgence of the outbreak; new virus variants; uptake and effectiveness of health and safety measures or actions that are voluntarily adopted by the public or required by governments or public health authorities, including vaccines and treatments; and the speed and strength of an economic recovery, including the reopening of businesses, the long-term effects of COVID-19 are difficult to predict. This will keep assessing the nature and scope of the impact on businesses across the world.

Additionally, COVID-19 has negatively impacted the financial viability and operations of merchants in certain verticals (such as travel and entertainment) and, as a result, allowances for transaction and credit losses may not accurately reflect the number of losses that major market players may be exposed to, further hampering the market’s growth amid the pandemic.

Global 3D Secure Identification Market Dynamics

Drivers: Growing online fraudulent activities amplifies the implementation of 3D secure authentication

Fraud prevention is a crucial aspect of every business. Fraud not only drains money, but if a merchant's fraud prevention is insufficient, fraudsters may attack them frequently in search of an easy gain. Effective fraud protection is, unfortunately, a moving target. Every time retailers, banks, or card networks devise a new method of preventing fraud, and fraudsters devise a new method of perpetrating it. As a result, merchants must be as up to date on fraud prevention as possible. While there are other anti-fraud measures available, 3-D Secure authentication is one of the most critical for merchants to be aware of.

According to the UK Finance Organization, during the pandemic, bank employees on the front lines have worked tirelessly to safeguard consumers from fraud and assist police in catching the perpetrators. In 2020, the sector will have prevented £1.6 billion (USD 2.18 billion) in unauthorized fraud losses or £6.73 (USD 9.16) for every £10 (USD13.60) in attempted fraud. The Banking Protocol, a rapid response program for bank branches that prevented £45.3 million (USD 61.62 million) in frauds in 2020, is now being expanded to encompass internet and telephone banking. As a result, a strong payment security framework is likely to emerge, with rigorous criteria for detecting and preventing fraud in digital transaction systems. Businesses may expand their customer base by offering the flexibility and security that credit/debit cards, mobile money, e-wallets, and other payment options need. Thus, 3D secure pay authentications are predicted to gain traction in the near future.

Restraints: Lack of global standards and cross-border payments to hinder growth

Over the last few decades, several governments and nationalized banks have established high- and low-value payment systems based on security requirements and proprietary communication. As payment systems become more autonomous, there is a higher requirement for standardization and automation across intra-bank and inter-bank networks between countries. This is predicted to limit the use of 3D secure services, and it usually involves the collection and correction of human data. In addition, each different security field added to an online form can seriously lower the number of completed transactions. Moreover, some customers might not know what 3-D Secure is and can close the browser window. This, of course, will lead to lost sales as well as there will be additional costs associated with setting up and using 3-D Secure.

Intra-bank transactions enable multinational corporations and banks with subsidiaries and branches to transfer funds to countries where they are needed. Beneficiaries are instantly credited to their foreign operation accounts, or payments are sent to their banks via national clearing and settlement procedures or bilateral transfers. As a result, the availability of alternatives is likely to hamper the adoption of 3D secure pay authentication systems.

Opportunities: Rising inclination toward the digital solution

Payment is undoubtedly the most important aspect of business and one of the most frustrating aspects for customers, whether they shop offline or online. As a result, the retail industry has created new customer journeys that cater to individual tastes, with checkout as a focal point. One-click shopping, QR-based payments, and Scan & Go are just a few of the new experiences enabled by digital technologies and smartphones. This happens to be smoother with the adoption of 3D secure version 2.0. The 3DS 2.0 offers a better user experience without the need for page redirects. The "Challenge Flow" can be directly included within merchants' mobile and web checkout flows. These mobile Software Development Kits (SDKs) provide in-app authentication and eliminate browser redirection for shopping apps. European Union has mandated to follow SCA and PSD2 requirements by every entity functioning in the region. 3D Secure 2.0 will assist organizations in remaining compliant with PSD2 rules. Not only the European Union countries, but also India, have made 3D Secure a necessity. To provide a secure online shopping experience, the Reserve Bank of India requires the use of a 3DS password.

Debit and credit cards are becoming more widely available in the APAC area, owing to a spike in digitization in the banking sector. Due to the ease with which these cards may be obtained, a large portion of the public can now utilize their card details for online purchases, resulting in a growth in the use of online payments. Aside from the rise in online payments due to the availability of cards and the ease with which online payment portals may be used, organizations that provide authentication technology are also important, which significantly enhance the growth of the 3D secure identification market over the forecast period.

Scope of the Global 3D Secure Identification Market

The study categorizes the 3d secure identification market based on type, and application area at the regional and global levels.

By Type Outlook (Sales, USD Million, 2019-2033)

• On Premise
• Cloud-based

By Application Outlook (Sales, USD Million, 2019-2033)

• Consumer Electronics
• ATM
• POS Machine
• Other

By Region Outlook (Sales, USD Million, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Cloud-based segment accounts for the largest market share by type

Based on the type, the market is divided into on premises and cloud based. The cloud based segment is expected to dominate the market share in 2022 in the global 3d secure identification market. The cloud based segment currently dominates the market share in the 3d secure identification market. Cloud-based 3D authentication systems are in high demand in the market due to they are more effective, have faster process implementation, and are more dependable than on-premise solutions, while also allowing greater access from any location. It's also easy to set up and scale, making it ideal for banking partners, resulting in safer and smoother online payment. Throughout the projection period, these factors will fuel demand for the Cloud-Based 3D secure identification type segment.

North America is expected to witness the largest market share by Region

Based on the regions, the global 3d secure identification market has been segmented across Europe, North America, the Middle East & Africa, Asia-Pacific, and South America. North America is projected to account for the highest market share in 2022. The increase can be attributable to an increase in Card Not Present (CNP) fraud in North America. To combat CNP fraud, merchants in the United States and Canada are increasingly using 3D secure payment authentication. According to Paypers BV, 3DS safeguarded around 37% of all CNP transactions in America, up from 10% in Q3. Additionally, the dominance of market firms delivering 3DS solutions throughout the globe is a crucial element driving the sector's growth.

Competitive Landscape: Global 3D Secure Identification Market

The 3d secure identification market is a significant competitor, and extremely cutthroat in the sector are using strategies including product launches, partnerships, acquisitions, agreements, and growth to enhance their market positions. Most sector businesses focus on increasing their operations worldwide and cultivating long-lasting partnerships.

Major key players in the global 3d secure identification market are:

• Visa
• Infineon Technologies AG
• Qualcomm Technologies, Inc.
• PMD Technologies AG
• GPayments
• Adyen
• Broadcom
• Modirum
• Entersekt
• Company 10
• Company 11
• Company 12
• Company 13
• Company 14
• Company 15

Recent Development

• In February 2022, Qualcomm Technologies, Inc. and Hewlett Packard Enterprise announced to collaborate to deliver the next generation of 5G distributed units, powered by Qualcomm Technologies’ inline accelerator card. This collaboration focuses to address the demands of next-generation networks, simplify deployments and lower the total cost of ownership (TCO) by delivering high-performance, energy-efficient, virtualized, cloud-native 5G solutions.
• In January 2022, Pmdtechnologies ag has announced the next generation 3D Time-of-Flight Development Kit, the “flexx2”. The flexx2 has been upgraded over the PicoFlexx to provide even greater depth-sensing capabilities, with 38,000 3D pixels and a 56 x 44-degree Field-of-View, all in the size of a pack of chewing gum (72.1mm x 19.2mm x 10.2mm).
• In August 2022, Entersekt has partnered with BankID to provide Norwegian banks with secure in-app and browser authentication, supporting requirements for digital identity, e-signatures, and strong customer authentication on a single platform.
• In March 2020, Infineon Technologies AG collaborated with Qualcomm Technologies, Inc. to create a 3D authentication reference design based on the Qualcomm Snapdragon 865 Mobile Platform. It is thus spreading the application portfolio of its 3D sensor technology for mobile devices.
• In January 2020, Visa, a global company in payments technology, has entered into an acquisition with Federal Bank to roll out Visa Secure to the bank’s cardholders.

Key Issues Addressed

• What is the market size by various segmentation of the 3d secure identification by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the 3d secure identification market?
• What are the key opportunities and trends for manufacturers involved in the 3d secure identification supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of 3d secure identification in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent startups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.