Market Size of Mobile Payment Security Software Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 14.13 Billion |
Market Size (2029) | USD 24.81 Billion |
CAGR (2024 - 2029) | 11.93 % |
Fastest Growing Market | Asia Pacific |
Largest Market | North America |
Major Players*Disclaimer: Major Players sorted in no particular order |
Mobile Payment Security Software Market Analysis
The Mobile Payment Security Software Market size is estimated at USD 14.13 billion in 2024, and is expected to reach USD 24.81 billion by 2029, growing at a CAGR of 11.93% during the forecast period (2024-2029).
The rising popularity of mobile wallets in both developed and developing countries is driving up demand for security software by creating new opportunities for companies and service providers.
- Mobile payment methods are expected to grow significantly due to increased smartphone penetration and its several benefits, including improved customer experience that minimizes line waiting times and broadens client payment options.
- QR codes, Near Field Communication (NFC), and SMS (NFC) can all be employed for accepting mobile payments. Furthermore, users increasingly use mobile devices for various purposes, such as safe financial transactions via mobile applications or web banking sites. The industry is anticipated to rise as multi-factor authentication methods are adopted.
- The market's progress could be improved by pirated mobile payment security software. It immediately creates security concerns, affecting the authenticity of mobile payments. The need to safeguard customer data, adhere to rules, and keep up with the changing threat landscape are driving factors behind the increase. The sophistication of cybercriminals' attacks is increasing due to technological improvements. New and more sophisticated payment security solutions have been developed to stay up with the changing threat landscape.
- The mobile payment security software industry is anticipated to surge throughout the forecast period owing to the increasing use of digital payments such as credit/debit cards, mobile wallets, and online transactions. However, the rapid surge in the frequency of data breaches is one of the primary factors driving the market's rise. According to the FIS Global Payments Report, digital wallets will account for slightly more than half (52.5%) of the value of global eCommerce transactions by 2025, up from 48.6% in 2021. As per the estimation, digital wallets would increase to more than 39% at physical points of sale, a 10% increase from 2021 levels. The rapidly expanding loyalty programs in the mobile wallet market accelerate global mobile payment growth.
- Both mobile app breaches and the use of mobile payment apps have increased dramatically in recent years. Data breaches often begin with a public app version with coding defects that hackers may exploit to steal data. At any given moment, malicious programs affect approximately 11.6 million mobile devices. Furthermore, the most common reasons for data breaches include risky app behavior, such as aggressive data collecting and sharing. For example, in August 2022, CloudSEK's threat intelligence section, XVigil, revealed that BharatPay's backend database, which held customers' personal information, bank balances, and transaction data from February 2018 to August 2022, had been exposed on a cybercrime forum.
- During the projection period, this market would rise due to the increasing popularity of multi-factor authentication methods. Multi-factor authentication is a verification mechanism that guards against unauthorized access to consumer financial information using two or more distinct authentication methods. To validate payment transactions on mobile devices, this method uses various authentication strategies, including smart cards, phone-based authentication, and biometrics technology.
- The mobile payment security software industry was anticipated to proliferate due to the COVID-19 outbreak and the increased use of digital payment systems. The COVID-19 pandemic had a favorable effect on the market's expansion. Consumers transitioned from using physical cash to contactless and digital payment methods due to the COVID-19 pandemic. In light of the COVID-19 outbreak, retailers worked harder than ever to accept digital payments.
Mobile Payment Security Software Industry Segmentation
Industries such as Telecom & Information Technology, Banking & Financial Services, Government, Transportation, Retail, Entertainment, and Media are increasingly adopting mobile payments for ease in transactions, given the growing usage of wireless networks. This has also led to increased payment fraud, owing to which the end-user industries are adopting payment security solutions to provide secure payment transactions by their customers.
The market can be segmented by end user industry (telecom and information technology, banking and financial services, government, transportation, retail, entertainment, and media) and geography (North America, Europe, Asia-Pacific, Latin America, Middle East & Africa). The market sizes and forecasts are provided in terms of value (in USD) for all the above segments.
End-user Industry | |
Telecom & Information Technology | |
Banking & Financial Service | |
Government | |
Transportation | |
Retail | |
Entertainment and Media | |
Other End-User Industries |
Geography | |
North America | |
Europe | |
Asia-Pacific | |
Latin America | |
Middle East and Africa |
Mobile Payment Security Software Market Size Summary
The mobile payment security software market is poised for significant growth, driven by the increasing adoption of digital payment methods such as mobile wallets, credit/debit cards, and online transactions. The proliferation of smartphones and the convenience of mobile payments are key factors propelling this market forward. As consumers shift from cash to contactless and digital payment systems, the demand for robust security solutions to protect financial transactions and personal data is escalating. The market is also witnessing advancements in multi-factor authentication methods, which enhance security by requiring multiple forms of verification for transactions. This trend is further supported by the growing sophistication of cyber threats, necessitating the development of more advanced security solutions to safeguard against data breaches and fraud.
The industry landscape is characterized by a fragmented market with numerous suppliers offering a variety of mobile payment security solutions. Partnerships and collaborations are becoming increasingly common as companies strive to expand their product offerings and enhance security features. Notable developments include the launch of advanced tokenization products and collaborations to improve digital payment security. The North American region, with its established consumer market and regulatory framework, is a significant player in this space, with major companies like Visa and Mastercard leading the charge. As digital wallets gain traction, they are expected to become the dominant form of online payment, further driving the need for secure and efficient payment processing solutions.
Mobile Payment Security Software Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Introduction to Market Drivers and Restraints
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1.3 Market Drivers
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1.3.1 Increasing Mobile Payments Due to Increased Smartphone Penetration is Driving the Market Demand
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1.4 Market Restraints
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1.4.1 Increased Risk of Exploitation Through Piracy is Restraining the Market Demand
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1.5 Value Chain Analysis
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1.6 Industry Attractiveness - Porter's Five Forces Analysis
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1.6.1 Bargaining Power of Buyers/Consumers
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1.6.2 Bargaining Power of Suppliers
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1.6.3 Threat of New Entrants
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1.6.4 Threat of Substitute Products
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1.6.5 Intensity of Competitive Rivalry
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1.7 Assessment of COVID-19 impact on the industry
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2. MARKET SEGMENTATION
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2.1 End-user Industry
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2.1.1 Telecom & Information Technology
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2.1.2 Banking & Financial Service
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2.1.3 Government
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2.1.4 Transportation
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2.1.5 Retail
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2.1.6 Entertainment and Media
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2.1.7 Other End-User Industries
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2.2 Geography
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2.2.1 North America
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2.2.2 Europe
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2.2.3 Asia-Pacific
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2.2.4 Latin America
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2.2.5 Middle East and Africa
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Mobile Payment Security Software Market Size FAQs
How big is the Mobile Payment Security Software Market?
The Mobile Payment Security Software Market size is expected to reach USD 14.13 billion in 2024 and grow at a CAGR of 11.93% to reach USD 24.81 billion by 2029.
What is the current Mobile Payment Security Software Market size?
In 2024, the Mobile Payment Security Software Market size is expected to reach USD 14.13 billion.