According to a new report published by Allied Market Research, titled, “Payment Card Skimming Market, By Component (Solution and Service), By Deployment Mode (On-Premise and Cloud), By Organization Size (Large Enterprise and Small Medium-sized Enterprise), By Application (Identity Theft, Payment Fraud, Money Laundering, ATMs and Others): Global Opportunity Analysis and Industry Forecast, 2023–2032". The payment card skimming market was valued at $2.9 billion in 2022, and is estimated to reach $7.4 billion by 2032, growing at a CAGR of 9.9% from 2023 to 2032.
Increasing adoption of digital payments along with the increase in cybercrimes relating to the digital payments is driving the growth of the market. However, lack of awareness among of people and less popularity of identity theft risks hampers the growth of the market. Moreover, increasing adoption of digital and electronic identification in developing countries is expected to provide lucrative opportunities for the market to grow. Furthermore, the global payment card skimming market is in its developing phase, and exhibits high growth potential, due to rise in support and preventive measures taken by government in developing countries. For instance, adding identity insurance coverage to an existing home-owners insurance normally costs less than $50 per year, according to the Insurance Information Institute (Triple-I). In addition, increasing threats for digital identities and increasing frauds on the digital platform is fueling the payment card skimming market growth. As the payment landscape evolves, ongoing innovations in security protocols and heightened public awareness play crucial roles in staying ahead of evolving payment card skimming market trends.
Furthermore, in April 2022, Marqeta launched a new RiskControl solution, a comprehensive product suite to help card issuers better optimize their card programs and take control of end-to-end risk management. RiskControl is designed to provide businesses with comprehensive risk, compliance, and fraud management capabilities, allowing them to focus on their business growth. In addition, RiskControl is anchored by the introduction of a powerful new fraud management solution – Real-Time Decisioning – enabling card programs to develop fine-tuned transaction controls to help limit payment fraud. RiskControl also includes newly enhanced versions of our Know Your Customer (KYC) and Disputes products, alongside our previously announced 3D Secure tool. The core products in RiskControl are designed to manage risk and compliance across the entire cardholder lifecycle, starting with customer onboarding and KYC, to payment transactions, through to the management of disputes.
Moreover, in February 2023, Mastercard announced that it is partnering with Network International, the leading enabler of digital commerce across the Middle East and Africa, to address fraud, declines and chargebacks in order to reduce costs and risk for acquirers. Through the partnership, Network will launch Mastercard’s Brighterion Artificial Intelligence (AI) technology across the region, providing transaction fraud screening and merchant monitoring to acquirers and businesses.
Based on component, the solution segment has acquired the major payment card skimming market size in 2022. This is attributed to the fact that advanced encryption technologies, such as end-to-end encryption and tokenization, have gained prominence as effective measures to protect sensitive cardholder data. Point-of-sale terminals and payment processing systems increasingly integrate these solutions to ensure that data is securely transmitted and stored throughout the transaction process. Real-time fraud detection systems have become pivotal, employing machine learning algorithms to identify anomalous patterns and potential skimming activities swiftly.
Based on region, the North America segment acquired a major share in the payment card skimming market in 2022. This is attributed to the fact that the migration to EMV (Europay, Mastercard, Visa) chip technology has been a significant trend in North America. EMV cards provide enhanced security compared to traditional magnetic stripe cards, making it more challenging for criminals to use skimming devices. However, some regions may still face challenges in complete EMV adoption.
With lockdowns and restrictions prompting an accelerated shift towards online and contactless payments, cybercriminals adapted their strategies to exploit vulnerabilities in these evolving payment methods. While physical skimming at traditional points of sale declined due to reduced in-person transactions, the focus shifted towards remote methods such as e-commerce skimming and online fraud. Furthermore, the increased reliance on digital payments also heightened the importance of securing online platforms, leading to a surge in phishing attacks and malware, such as card skimming contactless, designed to capture sensitive payment information. Moreover, the economic uncertainties during the pandemic created an environment conducive to cybercriminal activities such as contactless card skimmer, as financial desperation and increased online transactions provided ample opportunities for exploitation. Thus, these factors limited the growth of the payment card skimming industry during the pandemic situation.
Key Findings of the Study
- Based on component, the solution segment accounted for the highest payment card skimming market share, in terms of revenue in 2022.
- Based on application, the identity theft segment attained the highest market share in 2022.
- Based on region, North America generated the highest revenue in 2022.
The key players operating in the payment card skimming market analysis include Fiserv Inc., Sesame Software, Complianceforge, Investedge, Riskskill Inc., Rivial Data Security, Matrix IFS, NASDAQ BWISE, Quercia Software, C2C Smartcompliance. These players have adopted numerous strategies to increase their marketplace penetration and strengthen their position in the payment card skimming market.