Online Payment Fraud Detection Market Report Overview
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The global online payment fraud detection market size was USD 7.3 billion in 2021, as per our research, the market is expected to reach USD 31.97 billion by 2031, exhibiting a CAGR of 15.24% during the forecast period.
The global COVID-19 pandemic has been unprecedented and staggering, with online payment fraud detection market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.
The goal of the online payment fraud detection market is primarily to stop the theft of money from customers through illicit phishing. Cybercriminals that want to generate quick money through the internet carry out the method. Since the internet's creation, its technologies have progressed, and as a result, the internet has developed into a haven for illegal activity. The availability of internet banking has raised the likelihood of fraud and money theft by criminals using data transmissions. Many enterprises and industries can benefit from online payment fraud detection, but banking operations and other e-commerce and e-tailing websites particularly benefit from it.
The excessive use of the internet and the desire for online buying over offline shopping have increased the activities of online payment transferring, necessitating the employment of an online payment fraud detection tool by online e-commerce companies. Online payment fraud detection is necessary for e-banking purposes by the government to stop any impending threat of banking fraud, which is fueling the market for online payment fraud detection. These elements are the main drivers of the online payment fraud detection market growth.
COVID-19 Impact: Increased Online Payments During Pandemic Boosted Market Growth
The COVID-19 scenario harmed some global markets. However, the market for online payment fraud detection benefited from the pandemic. Due to people being trapped inside their houses for a prolonged period due to the widespread COVID-19 infection that led to the global lockdown, internet payment activities skyrocketed. Sales on e-commerce websites increased, driving growth in the market for detecting online payment fraud. The market expanded during the pandemic as a result of the widespread usage of internet payments, which necessitated the development of an online payment fraud detection tool.
Latest Trends
"Utilization Of Artificial Intelligence And Machine Learning Facilitates Marker Progress"
The market for online payment fraud detection has had to upgrade its technology in response to the rising activity of digital payments for a wide range of financial institutions. Financial institutions aim to avoid financial risk mitigation and payment fraud detection to stop phishing and other unlawful actions. While cybercrime is rising, the market for online payment fraud detection is changing daily. Platforms for real-time online payment fraud detection and anomaly detection of anyone who might leak personal data are now possible thanks to the incorporation of artificial intelligence and machine learning. Due to the inclusion of AI and ML in its products, the market for detecting online payment fraud has grown significantly.
Online Payment Fraud Detection Market Segmentation
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- By Type Analysis
According to type, the market can be segmented into E-payment, mobile payment, and card payment. Among the three of these, the E-payment segment is expected to dominate the market during the forecast years.
- By Application Analysis
Based on application, the market can be divided into identity theft, payment frauds, money laundering, and others. Identity theft segment is predicted to lead the market during the 2021-2031 market years.
Driving Factors
"Payment Risk And Laws Regarding Online Fraud Drives Market Development "
Since the COVID-19 outbreak and the ensuing lockdown, which inevitably required people to remain indoors at all times, internet businesses and e-commerce websites significantly rely on online payments. Since there has been an increase in online payment activity, frauds such as identity theft, triangulation, merchant fraud, counterattacks, and affiliate and clean frauds, among many others, have become more common. As a result, the government has passed regulations restricting the addition of instruments for detecting online payment fraud, accelerating the market's growth.
"Adoption Of Digitization Augments Product Growth"
The demand for online payment fraud detection has grown significantly in the middle of the global digital revolution. With the advancement of technology, the world of cybercrime has gotten more sophisticated, making the addition of online payment fraud detection technologies in the finance industry important. As a result, online banking has become vulnerable to online crimes and unlawful activities.
Restraining Factors
"High Cost And Complexity Of Crimes Hinders Market Expansion"
The installation and operation of the fraud detection tool are quite expensive, which restrains the growth of the online payment fraud-detection market. Since the beginning of the online banking initiatives given by numerous banks worldwide, cybercrimes have also become more sophisticated and technologically savvy. Financial institutions unintentionally introduced gaps that render them vulnerable to payment fraud due to consumer demand for access to digital banking services 24 hours a day. These elements can impede the market's expansion for online payment fraud detection.
Online Payment Fraud Detection Market Regional Insights
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"North America To Lead The Market Due To High Demand "
North America holds the most online payment fraud detection market shares among other regions. Due to the significant demand for the product and the region's high level of activity in cybercrimes related to banking frauds, the region is currently in the lead. Due to the prevalence of spyware, money laundering, and other issues throughout the vast territory of North America, there is a demand for the online payment fraud detection industry. Since the market is also the most developed in the area, there is a strong demand for the product, and the existence of important players in the area also contributes to the market's expansion.
Due to the rising activities of cyber bots, network attacks, and other frauds, Europe ranks second to North America in owning most of the market shares. This has led to a significant increase in demand for solutions for detecting online payment fraud in the region. As online unlawful activities have increased, market participants in the European region are developing their technology over time. The usage of fraud detection systems has been deemed the top priority in all financial institutions by The European Banking Authority for the year 2020 to stop money laundering and other crimes of a similar nature.
Key Industry Players
"Key Players Focus on Partnerships to Gain a Competitive Advantage "
Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.
List of Market Players Profiled
- RSA Security (U.S.)
- NuData Security (Canada)
- SIMILITY (U.S.)
- Ingenico (France)
- Securonix (U.S.)
- Accertify (U.S.)
- Worldpay (U.S.)
- CyberSource (U.S.)
- IPQualityScore (U.S.)
Report Coverage
This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors such as segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.
| REPORT COVERAGE | DETAILS |
|---|---|
Market Size Value In |
US$ 7.3 Billion in 2021 |
Market Size Value By |
US$ 31.97 Billion by 2031 |
Growth Rate |
CAGR of 15.24% from 2021 to 2031 |
Forecast Period |
2023-2031 |
Base Year |
2023 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
Types & Application |
Frequently Asked Questions
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What value is the global online payment fraud detection market expected to touch by 2031?
The global online payment fraud detection market is expected to touch USD 31.97 billion by 2031.
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What CAGR is the online payment fraud detection market expected to exhibit during 2021-2031?
The online payment fraud detection market is expected to exhibit a CAGR of 15.24% over 2021-2031.
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Which are the driving factors of the online payment fraud detection market?
Adoption of digitization across all platforms and increased use of online banking which comes along with fraud risk has been driving the online payment fraud detection market.
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Which are the top companies operating in the online payment fraud detection market?
Some of the notable key players of online payment fraud detection market are: RSA Security (U.S.), NuData Security (Canada), SIMILITY (U.S.), Ingenico (France), and Securonix (U.S.).
