3D Secure Payment Authentication Market Size, Share & Trends by component, by application, Region, and Segment for Forecast Period (2025 – 2032)

The 3D Secure Payment Authentication market Size was valued at USD 3.95 billion in 2024. The market is expected to reach USD 10.13 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.5 % from 2025 to 2032.

The 3D Secure (3DS) is a certification protocol that adds a security layer to online card payments, confirming the cardholder's identification through a one-time password or biometrics. The updated 3DS2 improves mobile compatibility and user experience by reducing fraud and chargebacks. It is necessary for compliance, trust, and safe e-commerce transactions.

3D Secure Payment Authentication is becoming more normal as it helps prevent fraud when people make online purchases using cards. It is simply just a small check to help verify that the person purchasing something is indeed the owner of that card. Most of the time, this happens when the bank asks for the code sent to your phone or fingerprint. The new version, called 3DS2, works better on mobile phones and does not bother the checkout process much. Rapid development of online shopping has increased the risk of fraud, prompting merchants and e-commerce platforms to adopt strong security measures.

3D secure payment certification provides an additional layer of safety for both buyers and sellers. While not entirely foolproof, this card significantly reduces the possibility of data theft. With the progress in safety technology, the market is expected to experience continuous growth in the coming years, developing regulatory requirements and continuous changes towards digital payments.


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Global 3D Secure Payment Authentication Market Dynamics:
Adoption of 3D Secure 2.0 (3DS2) to boost 3D Secure Payment Authentication Market Growth
The widespread shift towards 3D Secure 2.0 (3DS2) marks significant progress in digital payment authentication. Unlike its predecessor, 3DS2 provides a more streamlined and safe experience by enabling real-time, risk-based decisions. This leads to fewer transaction disruptions, which helps reduce cart abandonment and improve conversion rates for merchants. 3DS2 increases security by taking advantage of more than 100 data points - such as device information, browsing patterns, and location - to help the issuance to assess dynamic risk. This ability supports the prevention of more intelligent and flexible fraud without compromising user experience.

The protocol has also been adapted to the mobile and multi-channel environment, allowing biometric authentication and smooth integration with in-app purchases, responding to the growing demand for mobile-first payment solutions. The PSD2 mandate of the European Union accelerates 3DS2 adoption between strong customer authentication, financial institutions, and e-commerce platforms.

Rising online fraud and cybersecurity threats are accelerating the adoption of 3D Secure authentication for safer digital transactions to Drive the 3D Secure Payment Authentication Market Growth.

The increasing incidence of online fraud and cybersecurity violations has raised serious concerns for consumers and businesses, especially in digital payments. With an increase in identity theft, phishing scams, and card-not-presented fraud, there is a strong demand for safe authentication systems that can validate the identity of the user during transactions. 3D helps to meet this requirement by starting an additional layer of safe authentication verification, confirming the validity of the cardholder before completing the payment. This reduces the possibility of unauthorized access and fraud activity.

As global e-commerce increases and digital transactions become more common, companies are under more pressure to increase security by maintaining a smooth user experience. The latest version 3D Secure 2.0 offering both safety and facilities supports advanced features such as risk-based authentication and biometrics. These factors are driving the rapid integration of 3D safe in payment systems, making it an important solution to strengthen online payment safety.
Reduced Fraud and Chargebacks to Create Opportunity for the 3D Secure Payment Authentication market
The adoption of 3D Secure payment authentication is opening up significant opportunities by helping to reduce fraud and chargebacks in online transactions. Since digital payments continue to expand, safety threats such as identity theft and unauthorized cards are also increasing. Merchants and financial institutions. Since digital payments continue to expand, safety threats such as identity theft and unauthorized cards are also increasing.

3D Secure helps to address the problem by adding a step to the payment process to verify the cardholder's identity, making it difficult for unauthorized users to complete the transaction. This not only reduces the number of fraudulent payments but also reduces chargeback rates, which can affect the revenue and reputation of the merchant. The latest version, 3DS2, enhances it further by offering transaction-free and risk-based certification options without affecting customer experience. With more businesses that prefer payment safety, demand for 3D safe solutions is increasing, making strong opportunities for technology providers in this space.
Concerns over the security and handling of personal and biometric data to create Restraints for the 3D Secure Payment Authentication market
The growing reliance on personal and biometric data in 3D Secure payment authentication systems has raised significant privacy concerns. Since 3DS2 supports advanced features such as biometric verification and risk-based authentication, it often requires the collection and storage of sensitive user information, including fingerprints, facial data, and behaviour patterns. This has advocated the growing apprehension and privacy concerns among users that this data is handled, stored, and preserved by misuse or violation. Many consumers hesitate to share such information due to monitoring, data leaks, or the possibility of unauthorized third-party access.

Additionally, strict data security rules such as GDPR in Europe implement strict rules that how personal data should be processed, creating challenges for service providers. These privacy issues can discourage adoption equally by businesses and final users, acting as a major restraint in market development despite the safety benefits introduced by 3D safe authentication technologies.
Global 3D Secure Payment Authentication Market Segment Analysis:
Based on Component, the 3D Secure Payment Authentication market is segmented into Access Control Server, Merchant Plug-in, Fraud Detection & Risk Management Solutions, and Others. Access Control Server (ACS) segment dominated the market in 2024 and is expected to capture the largest market share during the forecast period. Access Control Server (ACS) plays an important role in ensuring safe communication and certified transactions between issuing banks and cardholders during online payment. It is a major element in deploying 3D safe protocols like 3DS2, which helps organizations to follow global regulatory standards such as PSD2 (PSD2) and similar rules in other areas. With an increase in e-commerce transactions with the rapid growth of online and mobile banking, the need for advanced and friction-free certification solutions has increased significantly.

ACS solutions enable various security facilities such as biometric verification, one-time password (OTP), and risk-based certification, effectively reducing fraud risks. Banks and financial institutions are rapidly investing in modernizing ACS infrastructure to promote the security of transactions and provide smooth user experiences. In addition, real-time fraud prevention and growing emphasis on customer-friendly authentication practices are further intensifying the expansion of this segment.

Based on Application, the 3D Secure Payment Authentication market is segmented into Banks & Financial Institutions, Merchants & E-commerce Platforms, Payment Gateways & Processors, Digital Wallet Providers, and Others. The Banks & Financial Institutions segment dominated the market in 2024 and is expected to capture the largest market share during the forecast period. This dominance is the result of their role in facilitating and protecting digital transactions across the realm of financial services.

Banks are the primary actors in payment authentication and, as such, are invariably tasked, by regulation, to demonstrate that they adopt strong customer authentication (SCA) procedures and reduce fraud. By investing in 3DS solutions, banks demonstrate regulatory compliance with international regimes, such as PSD2, as well as instill customer confidence in the safety of their digital banking experiences. As volumes of online transactions grow, so does the sophistication of cyber-based risk; banks and financial institutions are early adopters and key contributors to the growth of this segment.
Global 3D Secure Payment Authentication Market Regional Insights
North America dominated the 3D Secure Payment Authentication Market in 2024 and is expected to hold the largest market share during the Forecast Period, due to Information technology advancements in digital infrastructure, internet penetration rates, and secure online payment technology usage made North America the market leader with widespread use of credit/debit cards, mobile wallets, and e-commerce platforms, ultimately driving adoption toward 3D secure authentication solutions.

In addition, North America includes many of the area technology providers, financial services, and cybersecurity leaders to develop better innovation to develop the secure payments system, applying 3D Secure 2.0 (3DS2) as the foundation. The presence of legislative mechanisms such as the Gramm-Leach-bliley Act (GLBA) or California Consumer Privacy Act (CCPA) drives further investments into prevention of fraud mechanisms and reduces bad actors, driving more consumers into secure payment opportunities.

Government concern over rising cyber thefts or potential fraud issues, artificial intelligence (AI), brave new world traits, or technology related to biometric issues, and consumer demand (retail or general) are increasingly necessitating frictionless transactions, all depending upon secure mechanisms in existence in North America.
3D Secure Payment Authentication Market Competitive Landscape
Visa Inc. is a global leader in digital payments, and EMV (the consortium behind EMV standards) is a major force in advancing 3-D secure technology. Visa Inc. and EMVCo play distinct yet complementary roles in the 3D Secure payment authentication market. Visa, a global payment technology leader, offers Visa Secure (formerly 3D Secure 2.0), leveraging its vast network, advanced fraud analytics, and strong merchant partnerships to enhance transaction security with minimal friction. Visa Secure (3D Secure 2.0) reported $14.1 billion in total payment volume in FY2023, with fraud rates on Visa Secure transactions being 70% lower than non-3DS transactions. The company’s vast network, processing 276 billion transactions annually, gives it a competitive edge in scaling authentication solutions.

In contrast, EMVCo, backed by Visa and other major card networks, sets the EMV® 3-D Secure standard, which is widely adopted but not monetized directly. Over 90% of global card transactions now use EMV chip technology, and its 3DS framework supports secure transactions across multiple payment networks. While Visa competes commercially with solutions like Mastercard’s Identity Check, EMVCo ensures interoperability, with billions of EMV 3DS-enabled transactions processed annually.

EMVCo focuses on developing technical standards like EMV® 3-D Secure to ensure interoperability and security across payment ecosystems. While Visa drives adoption through its brand and issuer relationships, EMVCo ensures standardization, enabling seamless integration for all card schemes. Visa competes indirectly with EMVCo-backed solutions from rivals like Mastercard (with Identity Check), but EMVCo itself does not commercialize products; instead, it provides the framework that Visa and others implement. Thus, Visa leads in market execution, while EMVCo underpins the industry’s technical foundation.
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3D Secure Payment Authentication Market


Report Coverage
Details


Base Year:
2024
Forecast Period:
2025-2032


Historical Data:
2019 to 2024
Market Size in 2024:
USD 3.95 Bn.


Forecast Period 2025 to 2032 CAGR:
12.5 %
Market Size in 2032:
USD 10.13 Bn


 Segments Covered:
by Component
Access Control Server
Merchant Plug-in
Fraud Detection & Risk Management Solutions
Others


by Application
Banks & Financial Institutions
Merchants & E-commerce Platforms
Payment Gateways & Processors
Digital Wallet Providers
Others



3D Secure Payment Authentication Market by Region
North America (United States, Canada and Mexico)
Europe (United Kingdom, France, Germany, Italy, Spain, Sweden, Russia, Rest of Europe)
Asia Pacific (China, Japan, South Korea, India, Australia, Malaysia, Thailand, Vietnam, Indonesia, Philippines, Rest of APAC)
Middle East and Africa (South Africa, GCC, Nigeria, Egypt, Turkey, Rest of MEA)
South America (Brazil, Argentina, Colombia, Chile, Peru, Rest of South America)
3D Secure Payment Authentication Market Key Players
North America
1. Broadcom Inc. [United States]
2. Mastercard [New York]
3. Visa Inc. [United States]
4. EMVCo [United States]
5. American Express Company / American Express [New York]
6. RSA Security LLC [United States]
7. Entrust Corporation [United States]
8. SISA Information Security Inc. [United States]
9. Stripe [United States]
10. CyberSource [United States]
11. Braintree by PayPal Holdings, Inc. [United States]
12. Cardknox Development, Inc. [United States]
13. Discover Financial Services [United States]
14. Fiserv, Inc. [United States]
15. Shift4 Payments, LLC [United States]
16. Marqeta, Inc. [United States]

Europe
17. Thales Group [France]
18. DECTA Limited [London]
19. Netcetera [Switzerland]
20. Asseco Group [Poland]
21. Checkout.com Group [U.K.]
22. Ravelin Technology Ltd [U.K.]
23. Pay.com Group [U.K.]
24. SIA S.p.A [Italy]

Asia Pacific
25. AsiaPay Limited [Hong Kong]
26. RS Software [India]

South America
27. Modirum (Brazil)
28. Other Players
Frequently Asked Questions:
1. Which region has the largest share in the global 3D Secure Payment Authentication market?
Ans: The North America region holds the largest market share in 2024.

2. Who are the key players in the global 3D Secure Payment Authentication market?
Ans: Some key players operating in the 3D Secure Payment Authentication market include Mastercard, Visa Inc., Entrust Corporation, American Express Company / American Express, and RSA Security LLC.

3. What is the growth rate of the Global 3D Secure Payment Authentication Market?
Ans: The Global Market is expected to grow at a CAGR of 12.5 % during the forecast period 2025-2032.

4. What is the study period of this market?
Ans: The Global 3D Secure Payment Authentication Market is studied from 2025 to 2032.