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A11870 | Pages: 300 | Charts: 71 | Tables: 121 |
The global advanced authentication in financial services market was valued at $4.6 billion in 2021, and is projected to reach $18.5 billion by 2031, growing at a CAGR of 15.3% from 2022 to 2031.
Advanced authentication is a different technique for confirming a computer system user's identification. Examples include biometric systems, hardware tokens, and software tokens. These non-traditional techniques of identity verification are employed in addition to more conventional ones such as usernames and passwords.
Furthermore, advanced authentication refers to authentication using methods other than the standard login ID and password for user identification and authentication. This includes biometric systems, user-based public key infrastructure (PKI), smart cards, software tokens, hardware tokens, paper (inert) tokens, or "Risk-based Authentication". Risk-based authentication include a software token element made up of a number of factors, including network information, user information, and positive identification.
Businesses are increasingly using advanced authentication for payment to function more quickly, cut down on transaction time, and enhance security. In addition, to make sure the business runs securely, they are entailed with complex security authentication features to increase the security of payment systems. This factor notably drives the advanced authentication in financial services market growth.
However, high acquisition costs and security risks of the payment terminals hinder the growth of the advanced authentication in financial services market. On the contrary, technological advancements in the payment sector such as inclusion of machine learning (ML) and automations are expected to fuel the growth of the advanced authentication in financial services market in upcoming years. Moreover, increase in adoption of wireless handheld POS terminal by restaurants and healthcare industry for streamlining the transactions through biometrics is anticipated to provide lucrative opportunities for the market to grow in upcoming years.
The report focuses on growth prospects, restraints, and trends of the advanced authentication in financial services market. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers; competitive intensity of competitors; threat of new entrants; threat of substitutes; and bargaining power of buyers on the advanced authentication in financial services market outlook.
The advanced authentication in financial services market is segmented into Type, Enterprise Size and Authentication Method.
The advanced authentication in financial services market is segmented on the basis of solution, enterprise size, authentication type, and region. On the basis of solution, it is categorized into single factor authentication and multi-factor authentication. On the basis of enterprise size, it is classified into large enterprise and small and medium-sized enterprises. On the basis of authentication type, it is divided into smart cards, biometrics, mobile smart credentials, and others. On the basis of region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
[TYPEGRAPH]
By type, the multi-factor authentication segment acquired major advanced authentication in financial services market size in 2021. This is attributed to the rise in cyberattacks and security breaches, as well as the proportionately higher rate of online fraud. This is prevented by deploying multi factor authentication (MFA) systems in the employees' smartphones and computer devices to verify the identity of the user.
[REGIONGRAPH]
By region, North America held the largest advanced authentication in financial services market share in 2021. This is attributed to the presence of various biometric payment solution providers and high adoption of the same. Furthermore, a number of efforts have been taken by the regional banks to encourage the use of biometric payment cards for transactional purposes. Banks provide a variety of promotions and discounts to draw in both new and returning consumers.
The advanced authentication in financial services market analysis includes the profiles of key players operating in the advanced authentication market in financial services such as Fujitsu, Thales, NEC Corporation, Broadcom, Dell Inc., Valid Soft Group, Secur Envoy Ltd., Ping Identity, Mastercard, NetMotion Wireless, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the advanced authentication market in financial services.
Developing countries such as India and South Korea are increasingly targeted by the key players to develop and launch the biometric payment features into the existing range of products. For instance, in August 2022, Samsung Electronics and MasterCard have signed MoU as a part of which the two companies will be launching payment cards with built-in fingerprint sensors. Hence, the two companies will be launching payment experiences while reducing physical contact with payments terminal.
Furthermore, according to an article published in October 2022, merchants across the U.S. are expected soon to be able to accept biometric payments authenticated by a customer’s fingerprint using a point-of-sale (POS) solution launched by payment processing provider Green Payments. The solution is anticipated to allow users to link different payment options stored in a digital wallet including credit cards, bank accounts, and cryptocurrencies to individual fingers and then make in-store purchases at the POS by tapping the relevant finger on a biometric sensor.
During the COVID-19 pandemic, advanced authentication in financial services market demand has increased as there was surge in preference for cashless transactions. The COVID-19 pandemic increased the requirement for POS terminals equipped with radio frequency identification, biometric technology, and other technologies that accept payments through contactless chip cards and digital interface cards due to the need for contactless payments. The growth of advanced authentication in financial services market systems during the pandemic had enabled the interaction of customer relationship management (CRM) as well as other financial solutions for organizations. Thus, the pandemic had a moderate impact on advanced authentication in financial services industry.
Key Market Segments
Key Market Players