The mobile payment security market size is predicted to expand at an impressive 25.7% CAGR during the forecast period. The industry’s revenue stands at USD 14,216.3 million in 2024 and is projected to surpass USD 139,670.7 million by 2034.
It cannot be denied that the adoption of smartphones globally has revolutionized the manner through which customers conduct their financial transactions. Mobile payments are particularly attractive because they are portable, thus, allowing consumers to pay, transfer money, and be financially smart.
Mobile payments have greatly thrived with the frequent use of smartphones for different transactions. With the increased use of applications, there is a corresponding need to address the security of financial information and transactions. The mobile payment security market growth hastens with this need.
Global Mobile Payment Security Industry Trends Assessment
| Attributes | Description |
|---|---|
| Estimated Global Mobile Payment Security Market Size (2024E) | USD 14,216.3 million |
| Projected Global Mobile Payment Security Market Size (2034F) | USD 139,670.7 million |
| Value-based CAGR (2024 to 2034) | 25.7% |
Since mobile payments have become prevalent in the recent past, it becomes a focal point for cybercriminals who wish to penetrate such applications. The potentially threatening risks of mobile payment transactions include scams, compromised data, and malware. The cost of mobile payment fraud for businesses translates to reputational damages.
These threats change over time because hackers develop better ways of hiding their activities from anti-security programs. As a result, the threat is massive for business proprietors to seek out practical methods to manage risks offered to reduce, fend, and banish any risks approaching the consumers’ information and controversy surrounding the mobile payment industry.
The impact of emerging technologies like blockchain on mobile payment security is amplifying. Machine learning and Artificial Intelligence (AI) are widely being implemented in real-time to track and apprehend fraudulent transactions. These sophisticated techniques use advanced mathematical computations to process a huge number of transactions to detect signs of fraudulent transactions.
Machine learning models used in the financial industry can use new data to keep learning and improving, reducing cases of identifying fraudulent transactions, as well as reducing false alarms.
To mitigate losses and ensure that customers’ confidence is upheld, the mobile payment security industry is progressing as more businesses integrate machine learning and AI-based fraud detection. Future trends in mobile payment security indicate an aggressive uptake of advanced technologies.
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This table presents a numerical comparison of the mobile payment security market growth and trends. For a thorough analysis of the industry’s anticipated growth, the CAGR has been analyzed in semi-annual intervals. This includes a comparison of the historical analysis period of 2023 to 2033 and the forecast period of 2024 to 2034.
| Particular | Value CAGR |
|---|---|
| H1 | 22.7% (2023 to 2033) |
| H2 | 23.5% (2023 to 2033) |
| H1 | 22.9% (2024 to 2034) |
| H2 | 23.7% (2024 to 2034) |
Industry’s expansion accelerated at a CAGR of 22.7% in the first half (H1) of the 2023 and 2033 period and then increased slightly to 23.5% in the second half (H2) of the same period. Throughout the projection period, which runs from H1 2024 to H2 2034, the CAGR is forecasted to initially lower down to 22.9% before finally climbing to 23.7% in the second half.
Zero Trust Architecture Experiences Amplified Uptake in the Industry
The modern business environment is characterized by constant changes and innovations. Therefore, the outdated concepts of security cannot withstand new cyber threats. The growing importance of data privacy and user consent in mobile payment security is leading to innovations.
Zero Trust Architecture (ZTA) is an anticipatory security model that requires constant authentication and authorization of users and devices no matter their location or the network they are connecting from. ZTA can be used to control the access and authenticate users and their devices to the network or application.
Hence, limiting authorized access to critical resources such as a mobile payment system. By implementing this approach, the chance of internal threats, external threats, and data leakage is contained. Thus, the integrity of financial transactions and customer trust is maintained and the impact on customer loyalty and retention is minimized.
Cloud-based Security Solutions Witness High Demand in the Industry
With digital payment trends gaining popularity and digital transformation in many companies, security measures have to be cost-effective and efficient. The value proposition of cloud security solutions is quite persuasive. Organizations become capable of maintaining highly effective protection against cyber threats while enabling them to adapt to a rapidly growing demand for various new solutions and services.
Through cloud-based security solutions, companies can take advantage of sophisticated threat identification, monitoring, and self-remediation that will prevent unauthorized access to financial data and meet legal requirements.
Also, the cloud-based security platforms can be integrated with mobile payment applications to provide the best user experience and efficient operation. These factors amplify the popularity of cloud-based mobile payment security solutions in the industry.
Continuous Security Monitoring and Threat Intelligence Approaches Gain Traction in the Industry
Companies across the globe are experiencing a continuous growth of risk in the cyber world. They must adapt to embrace new technologies and measures to counter these threats. Perpetual security vigilance and threat intelligence allow organizations to continuously track clients’ traffic patterns, user activity, and other indicators of potential compromise.
With the help of real-time threat feeds and big data analysis, companies can quickly identify and mitigate security threats. This helps in reducing the exposure of their operations and clients’ data. This approach reduces risks and potential threats and also ensures the continuity of services and the business as a whole.
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The demand for mobile payment security rose at a 23.5% CAGR between 2019 and 2023. The mobile payment ecosystem has advanced from the simple payment system within retail stores to other sectors and services such as P2P, utilities, and mobile application purchases.
Since the use of mobile payments is rapidly evolving, it means that the security risks surrounding various types of transactions and customers’ information also increase. Companies are procuring application and end-to-end security solutions to safeguard every part of the mobile payment chain, stimulating market expansion of mobile payment security.
Mobile payment security industry is being shaped by the innovations brought about by decentralized finance (DeFi) platforms and cryptocurrencies. DeFi offers users decentralized peer-to-peer transactions, lending, and other financial services eliminating the banking charter.
However, the distributed possession of decentralized finance or DeFi brings new sets of risks like problems in smart contracts and blockchain hacks. Security and safety solutions are emerging in the mobile payment security industry to help secure DeFi transactions and ensure the protection of these digital assets to propel the industry forward.
Going forward, the future looks bright for the industry as expansion is estimated at a staggering 25.7% CAGR till 2034. The adoption of newer devices, for instance, IoT devices, wearables, contactless payments, and others will make mobile payment security more challenging and diverse.
Mobile payment providers will be in a position to design new security approaches. They are in a relentless pursuit of securing IoT gadgets, payments of wearable devices, and the security of contactless payments.
Tier 1 companies include the top leaders in the mobile payment security industry, capturing around 52% of the global industry share. Leading brands like Apple Pay, Google Pay, and Samsung Electronics leverage their large user base and brand recognition to drive adoption and introduce new features. They invest heavily in research and development to stay ahead of the competition.
Tier 2 companies include PayPal Holdings Inc., Visa Inc., and Mastercard Incorporated. These companies occupy around 28% of the global industry share. These companies primarily focus on partnerships and collaborations with financial institutions, merchants, and other stakeholders to expand their reach and increase transaction volume. They also invest in technology infrastructure to improve the reliability and security of their payment networks.
Ayden N.V., Alipay (Ant Group), and WeChat Pay (Tencent Holdings Limited) come under the Tier 3 companies list. They occupy about 20% of the global industry share. These companies differentiate themselves through specialization and niche offerings, targeting specific market segments or industries. They prioritize customer service and user experience to attract and retain clients.
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In this section, two industries in the information technology division, namely, mobile payment transactions and mobile payment data protection, have been analyzed. The information provided in the tables is indicative of trends and opportunities in these industries. The macro analysis indicates that the rise of e-commerce is a critical factor driving growth in these industries.
High smartphone and internet penetration is amplifying the growth scope for these industries. Advanced technologies like Artificial Intelligence, IoT, and Machine Learning are being implemented to provide secure and user-friendly solutions. Technological advances are expected to hasten the growth of these industries in the coming years.
Mobile Payment Transaction Industry Assessment:
Analysis indicates that financial services are pushing the boundaries of mobile payment transactions by offering seamless and convenient payment solutions using super apps. Security concerns are rising with the increasing sophistication of cyberattacks.
Thus, biometric authentication methods like facial recognition and fingerprints are gaining prominence in the industry. Emphasis on highly secure and user-friendly payment experiences is rising. As such, players are constantly innovating to satisfy changing demands.
| Attributes | Description |
|---|---|
| Related Market | Mobile Payment Transaction Market |
| CAGR (2024 to 2034) | 4.2% |
| Growth Factor | Surging adoption of smart devices boosts growth in the industry. |
| Future Opportunities | Increased popularity of sound wave-based mobile payments. |
| Current Trends | Increasing adoption of biometric authentication methods. |
Mobile Payment Data Protection Industry Assessment:
Research highlights that there is an increased need for quick and easy transaction services. NFC, RFID, and host card emulation technologies are witnessing increased adoption in mobile payments. Many banks and FinTech firms are launching appealing banking tactics to assist customers. This boosts demand for mobile payment, and consequently supports the mobile payment data protection industry.
| Attributes | Description |
|---|---|
| Related Market | Mobile Payment Data Protection Market |
| CAGR (2024 to 2034) | 12.3% |
| Growth Factors | Growing use of mobile wallets in both emerging and developed markets. |
| Future Opportunities | Increased popularity of e-wallets and growth of 5G technology. |
| Current Trends | Rising smartphone penetration across the globe. |
This section gives insights into the mobile payment security market forecast in top countries and the regional growth patterns. Information on regions like North America, Europe, Asia Pacific, and others has been granulated, focusing on the top countries. Australia is expected to be at the forefront, expanding at a 29.2% CAGR until 2034.
China follows next, expanding at a 26.2% CAGR until 2034. Lastly, the United States is also on the list, expanding at a 22.5% CAGR until 2034. This data indicates that the Asia Pacific region is likely to make remarkable progress in the coming years.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| Australia | 29.2% |
| China | 26.2% |
| United States | 22.5% |
The demand for mobile payment security in Australia is projected to surge at a 29.2% CAGR till 2034. The Australian government has been quite favorable to digital innovation and Fintech growth. The support has provided a favorable legal structure for mobile payment service providers to thrive and experiment.
Mobile payments have been supported by regulatory measures including the New Payments Platform (NPP) and Consumer Data Right (CDR), which help open up the industry for competition and growth. Australia has a well-developed banking and financial services industry with high degrees of digitization and innovations.
Large number of banks and other financial institutions of Australia have already launched mobile banking applications and other forms of digital payments, which has a positive effect on the mobile payment security market growth.
The demand for mobile payment security in China is set to amplify at a 26.2% CAGR until 2034. Mobile payment has expanded at a high rate because of China’s developing e-commerce industry and integration of online-to-offline (O2O). This has resulted in harmonizing mobile payment platforms with e-commerce platforms to enable consumers make purchases through their mobile devices, online and offline.
Such integration of online and offline shopping has resulted into the increased adoption of mobile payment therefore leading to the expansion of the mobile payment security industry. Businesses in China need to increasingly adhere to the regulatory landscape and compliance challenges in the mobile payment security market.
The demand for mobile payment security in the United States is anticipated to amplify at a 22.5% CAGR until 2034. Primarily, the mobile payment adoption in America has been buoyed by younger and more technically innovative consumers (Millennials and Gen Z). These demographics value convenience, speed and the time factor besides incorporating technology in their day-to-day activities, hence, adopting flexibility in payment.
This has forced companies to establish mobile payment security to sell their products to such potential customers as demanded. The role of open-source security solutions in the mobile payment market is paramount. Mobile, contactless, digital, and peer-to-peer payment solutions such as Apple Pay, Google Wallet and Venmo, Cash App, and Zelle transform customers’ concept of money and spending in the United States.
This section takes a closer look at the mobile payment security market segmentation by type and end-use. According to the type, the biometrics segment holds the leading shares of 59.2% in 2024. Based on end use, the banking and financial service segment captured 34.3% of industry shares in 2024.
| Segment | Biometrics (Type) |
|---|---|
| Value Share (2024) | 59.2% |
Biometric systems have become more efficient mainly due to enhancements in technology that offer higher reliability and speed. Technological advances like 3D facial recognition, in-display fingerprints, and multimodal biometry have enhanced biometric authentication in terms of reliability and ease of use. These improvements enhance the level of satisfaction and interest in biometric security solutions.
Another factor is that awareness and positive knowledge among consumers and companies of the opportunities for using biometric security are increasing. Promotions, articles, and word-of-mouth are some of the reasons that make users acknowledge biometrics as a preferred option for mobile payments.
| Segment | Banking and Financial Service (End Use) |
|---|---|
| Value Share (2024) | 34.3% |
The banking and financial service sectors undertake many high-value and high-turnover transactions in their operations. This makes them vulnerable to hackers, identity theft and other forms of digital fraud. Securing these activities from fraudulence and hacking is a critical factor that needs to be achieved to safeguard customer financial details.
Of all the sectors, there is increased pressure for novel and smarter security for mobile payment solutions within this sector. The banking and financial services industry is likely to continue the transition and diversification of digital and mobile banking to improve customer satisfaction and stay relevant.
This evolution entails the use of mobile payments across the globe, making security more imperative to deal with new risks. Technological advancements in mobile payment security assist these institutions to offer their customers services that are secure, efficient, and smooth.
The competition in the mobile payment security market is intense and it encompasses many big tech companies, financial organizations, security companies, and up-and-coming fintech companies. Large players like Apple, Google, and Samsung take advantage of their huge coverage and tech superiority to provide seamless, secure mobile payment platforms.
Companies like Visa, Mastercard, and PayPal apply their knowledge of transactions to develop a secure system founded on the latest technologies. Cybersecurity agencies target advanced technologies such as identity validation and live piracy control.
At the same time, more agile fintech firms such as Square, Stripe, and Adyen deliver flexibility and innovation, while providing high security and scalability of payments. The potential for consolidation and M&A activity in the mobile payment security market can amplify the growth of participants.
Mobile Payment Security Market Financial News and Analysis
The industry bifurcates into Tokenization and Biometrics.
The sector is classified into Telecom & Information Technology, Banking & Financial Service, Government, Transportation, Retail, Entertainment and Media, and Others.
Analysis of the industry has been conducted in the countries of North America, Latin America, Europe, East Asia, South Asia & Pacific, Middle East & Africa (MEA).
Industry is set to reach USD 14,216.3 million by 2024.
The industry is expected to reach USD 139,670.7 million by 2034.
Industry is set to report a CAGR of 25.7% from 2024 to 2034.
Biometrics lead the industry, with 59.2% of industry shares captured in 2024.
The demand in Australia is expected to advance at a CAGR of 29.2% through 2034.
1. Executive Summary 2. Industry Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent Industry Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034 5.1. Type 5.2. End Use 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Type 6.1. Tokenization 6.2. Biometrics 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End Use 7.1. Telecom & Information Technology 7.2. Banking & Financial Service 7.3. Government 7.4. Transportation 7.5. Retail 7.6. Entertainment and Media 7.7. Other 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Region 8.1. North America 8.2. Latin America 8.3. Western Europe 8.4. South Asia 8.5. East Asia 8.6. Eastern Europe 8.7. Middle East & Africa 9. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 10. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 11. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. South Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. Middle East & Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Sales Forecast 2024 to 2034 by Type and End Use for 30 Countries 17. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 18. Company Profile 18.1. BioCatch 18.2. Braintree 18.3. Carta Worldwide 18.4. Daon 18.5. Duo 18.6. EdgeVerve 18.7. Fingerprints 18.8. Fiserv 18.9. Fujitsu
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Mobile Payment Security Market
