3DS Authentication Market Size, Share, Growth, and Industry Analysis, By Type (System & Platform, Consulting Services & Solutions and Other), By Application (Consumer Electronics, ATM, POS Machine and Other) and Regional Forecast to 2033

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3DS AUTHENTICATION MARKET OVERVIEW

The global 3DS Authentication Market size was USD 6 Billion in 2024, is expected to rise to USD 7.32 Billion in 2025, and is forecasted to reach USD 35.52 Billion by 2033, expanding at a CAGR of 22.1% throughout the period.

3DS Authentication / 3-D Secure Authentication – is an application of the extra security layer for the e-card payments’ protection from fraud. They can be found in online shopping as well as virtual banking to identify the card owner at the time of the payment.

COVID-19 IMPACT

3DS Authentication Industry Had a Positive Effect Due to Increased Online Transactions during COVID-19 Pandemic

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

As the world went into lockdowns and social distancing, people needed products and began to order them online leading to high growth in digital payments. Due to this surge merchants began to use 3DS Authentication as a necessary measure in order to prevent online frauds. The growth of online transactions also resulted in the rise of fraudulent attacks, making it important for businesses to look for authentication solutions to protect their revenue and customer trust.

LATEST TRENDS

Increased Use of Biometrics to Propel Market Growth

An emerging pattern in the 3DS Authentication market is the past linked with the enhanced use of biometric solutions for more individualized and secure identification. Another type of identification is more reliable and comfortable than protected passwords, namely, finger scanner, face identification, and the iris scanner. We see consumers getting used to biometric technologies on their smartphones and other smart devices as a method of 3DS Authentication being adopted by businesses because while it makes user experience more secure, it is also much more efficient.

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3DS AUTHENTICATION MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into System & Platform, Consulting Services & Solutions and Other.

• System & Platform- These are basically solutions offered to payment gateways and service providers to enable 3DS authentications. They control the transaction processes by authentications, responses, and other forms of information exchange between merchants, issuers, and payment networks. Some of them are Visa 3D Secure and Mastercard’s Identity Check.

• Consulting Services & Solutions - Specific kinds of consulting solutions help organizations to address the challenges connected with 3DS Authentication, including approaches that guarantee the organization’s compliance with the requirements of such regulations as PSD2 and manage risks. They can be valuable to a business as the concept of pop-up organizations can assess the current methods of authentication used and provide recommendations on how to improve the security of the business.

By Application

Based on application the global market can be categorized into Consumer Electronics, ATM, POS Machine and Other.

• Consumer Electronics - In the consumer electronics industry, 3DS Authentication is common for making purchases of electronics products online. In today’s world, when customers shop through online portals to purchase a phone, laptop or accessories, 3DS authentication enables the confirmation of the identity of the buyer thereby minimizing chances of fraud and unauthorized transactions.

• ATM- Integration of 3DS Authentication is possible in ATM transactions, especially concerning the lack of use of a card, for example, in online cash transactions or mobile banking. This brings extra level of safety with the idea of user identification before you make transactions hence reducing incidences of ATM fraud.

• POS Machine- Positives are coming in that many retailers have integrated the use of 3DS Authentication in their POS terminals to prevent fraud in their stores. When consumers make payments with their cards and especially for expensive goods, the 3DS protocol can identify the card owner in real-time, which is a plus.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Increasing Online Transactions to Drive Market Advancement

One of the key driving factors in the 3DS Authentication market growth is the Increasing Online Transactions. A major factor that fuels the 3DS Authentication market is the growth of online purchases as a result of the advances in electronic business and service provision. This is so the case because with current reliable internet connection, the number of people transacting through the internet has increased. This means there is increased fraud chance, and therefore businesses are in search of strong security measures to safeguard their customers and additional revenues.

Rising Cybersecurity Threats to Expand the Market

Growing security risks are one of the many growth stimulants for the 3DS Authentication market, as they make it clear that security must be improved for online transactions. As cyber threats advance with even initial level identity theft, credit card frauds, and data breaches becoming more and more common, businesses need stricter mechanisms to keep their customers’ private information and their monetary achievements safe. Computer crooks are not standing idle, they are adapting to new strategies, choosing weak links in the payment chain, so the threats of the digital dollar are even higher.

Restraining Factor

Implementation Costs to potentially impede Market Growth

The cost incurred for implementing 3DS Authentication is a major challenge for the Market’s growth, mainly due to the high costs of integration if implemented by SMEs. Structural implementation of 3DS Authentication poses a significant risk in terms of cost because it entails buying software, developing new systems, and maintaining existing ones. Such costs may include acquisition of new technology, procurement of professional staff in technology implementation and often expensive trials that have to be run due to incompatibility with the existing payment systems.

Opportunity

Growing E-commerce Sector To Create Opportunity for the Product in the Market

The larger population of internet users is making the e-commerce market a large driver of the 3DS Authentication market because many customers find the process convenient. In this context, rapid development of digital transactions, including the increase due to the COVID-19 pandemic, subject the issue of strengthening payment protection to increased attention. As more customers turn to web-based buying, they are also more worried about identity theft and fraud, forcing vendors to seek better forms of identification.

Challenge

User Experience Issues Could Be a Potential Challenge for Consumers

Where user experience is a problem it poses significant difficulties in the 3DS Authentication market mainly due to the extra stages that have to be gone through during the transaction. The flow illustrated to many consumers as rather difficult and tiring, which results in negative attitudes and prevents them from enjoying the shopping. For example, additional authentication, like a password or a confirmation from a mobile application, users may read it as obstacles.

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3DS AUTHENTICATION MARKET REGIONAL INSIGHTS

• North America

North America has emerged as the most dominant region in the 3DS Authentication market share due to a convergence of factors that propel its leadership in this dynamic industry. North America again has a strong technological adoption and good internet connections and also has Local players of e-commerce and other retail businesses hence creating good ground to adopt 3DS Authentication.

• Europe

Europe is relatively a mature market for 3DS Authentication with high standards as well as immensely focused on consumer protection. The PSD2 is a Payment Services Directive 2 that was agreed to by the European Union, which requires strong customer authentication (SCA) for online transactions thereby increasing the use of 3DS Authentication solutions by merchants and payment service providers.

• Asia

The Ministers noted that 3DS Authentication is growing rapidly in the Asia Pacific due to a shift towards digital payments and e-commerce. Emerging economies such as China, India, most of the SEA countries have seen a strict boost in the use of cashless transactions and this has threatened firms to amplify protection to consumers from fraudsters.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the 3DS Authentication Market Through Innovation and Market Expansion

Key enterprise players are shaping the 3DS Authentication marketplace through strategic innovation and marketplace growth. Business entities are constantly developing their 3DS Authentication solutions through research and development. This comprises the use of machine learning as well as artificial intelligence in enhancing fraud detection and enhancing the process of customer authentication as well. A concept like fingerprint recognition, facial recognition, and voice authentication have emerged to be the new phenomenon in biometric solutions that are common in many enterprises to improve security and user experience. They should be able to provide multiple choices for authentications so as to alleviate the security concerns of the consumers while at the same time enhance the transaction flow.

LIST OF TOP 3DS AUTHENTICATION COMPANIES

• Mastercard(U.S.)
• Visa(U.S.)
• GPayments(Australia)
• CA Technologies (Broadcom)(U.S.)
• Modirum(U.S.)

KEY INDUSTRY DEVELOPMENTS

Feb 2023: PayU, an India-based online payment service provider launched a fresh new 3D Secure 2.0 SDK: Full native checkout and best customer experience for all card transactions. This solution, which has recently secured EMVCo approval, was created through a partnership between PayU and Wibmo, the full-stack global PayTech company belonging to PayU.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated time frame. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.