According to a recent report published by Allied Market Research, titled, “Payment Security Market by Component, Platform, Enterprise Size and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global payment security market size was valued at $17.64 billion in 2020, and is projected to reach $60.56 billion by 2030, growing at a CAGR of 13.2% from 2021 to 2030.
Payment security software is used to protect the customer’s confidential data from different types of vulnerabilities. Payment security software companies are increasingly designing next-generation solutions for consumer and enterprise-oriented services. In addition, government agencies are also demanding for a need to shift toward modern payment processing tools and techniques.
Furthermore, payment security software is adopted in various banking and insurance organizations in their production units to identify the threats in the payment system and measure its potential vulnerabilities Furthermore, increase in adoption of digital payment modes among the customers and the need to adhere to payment card industry data security standard (PCI DSS) guidelines are some of the important factor that boost the growth of the market across the globe.
In addition, rising in fraudulent activities in e-commerce payment system positively impacts the growth of the payment security market. However, lack of trust on online banking is hampering the payment security market growth. On the contrary, increase in demand for advanced payment security solutions for digital ecommerce and rise in use of payment applications across different industry verticals are expected to offer remunerative opportunities for expansion of the market during the forecast period.
Depending on enterprise size, large enterprise is dominated the payment security market share in 2020, and is expected to continue this trend in the upcoming years, owing to increase in adoption of digital technology among the banks to collect customers personal information. However, SMEs segment is expected to provide lucrative opportunity to boost the growth of the market during upcoming years, due to increase in need of data protection technology for improving banking efficiencies, streamlining payment processes, and managing delegated policies.
Region wise, the payment security market was dominated by North America in 2020, and is expected to maintain this trend during the forecast period. This is attributed to increased demand for innovative payment security software among banks & financial institutions and surge in utilization of e-wallet payment, which offers relevant rewards & incentives among customers. However, Asia-Pacific is expected to grow at the fastest CAGR during the forecast period, due to high investments for digitalized payment platforms, adoption of new technologies such as artificial intelligence, analytics, big data, and rapid expansion of domestic business.
COVID-19 Impact Analysis
The outbreak of COVID-19 is anticipated to have a positive impact on growth of payment security market trends. This is attributed to increase in demand for online banking and adoption of cashless transaction caused due to pandemic. However, the pandemic has led to increase in the number of cybercrimes, which increased the adoption of payment security software.
In addition, increase in the adoption of e-commerce has also increased the online payment method, which increases the demand for payment security software across the globe. Furthermore, the FinTech & banking industry is increasingly adopting & investing in digitalized payments solutions, which is technology-driven transformation in payments industry to deal with the new directives & regulations of governments. This, as a result is accelerating the demand for payment security software globally.
Key Findings Of The Study
- By component, the solution segment accounted for the largest banking as a service market share in 2020.
- Region wise, North America generated highest revenue in 2020.
- Depending on enterprise size, large enterprise generated the highest revenue in 2020.
The key players profiled in the payment security market analysis are Bluefin Payment Systems, Cybersource, Elavon Inc., Ingenico, Intelligent Payment Solutions Pvt. Ltd., Paypal, Shift4 Payments, LLC, SISA, Signifyd, and Tokenex. These players have adopted various strategies to increase their market penetration and strengthen their position in the payment security industry.