Global Payment Security Market on Track to Reach $19.82B in 2021, Forecasted to Grow 16% CAGR
The global payment security market is experiencing significant growth, with an expected valuation of approximately $19.82 billion in 2021. According to forecasts, the market is set to continue its upward trajectory, with a compound annual growth rate (CAGR) of over 16% between 2022 and 2029. Payment security plays a crucial role in safeguarding transactions, privacy, and customer data through the implementation of rules, norms, and security protocols. The increasing number of data breaches, rising e-commerce payment fraud, and the growing popularity of contactless payments are key factors driving the demand for payment security solutions worldwide.
One of the main catalysts for the market’s growth is the global shift toward digital payments. The digital payments segment is expected to reach a transaction value of $8.49 trillion in 2022, with projections suggesting it will rise to $15.17 trillion by 2027, growing at a CAGR of 12.31% during the period. This surge in digital payment preferences positively impacts the global payment security market. Furthermore, the widespread adoption of payment applications across various industries and ongoing technological advancements contribute to the market’s promising growth prospects.
While the market presents ample growth opportunities driven by technological advancements and government investments, it also faces certain challenges. Privacy and security concerns associated with storing biometric data on the cloud and the scarcity of skilled professionals in the field are among the challenges that need to be addressed.
In terms of regional dynamics, North America is currently leading in revenue generation, fueled by an increase in payment fraud incidents, strong adoption of digital payments, and rapid advancements in online transactions. On the other hand, the Asia Pacific region is expected to exhibit the highest CAGR during the forecast period. Factors such as the growing preference for online digital payments and an increasing demand for payment security are driving the market’s growth in this region.
Prominent players contributing to the global payment security market include Bluefin Payment Systems, Cybersource, Elavon Inc., Ingenico, Intelligent Payment Solutions Pvt Ltd., Paypal Holdings, Inc., Shift4 Payments, LLC, SISA, Signifyd, and Tokenex.
In a significant development, Bluefin partnered with Waystar, a healthcare payment software provider, in July 2022 to enhance healthcare payment security. Bluefin’s PCI-validated point-to-point encryption solution and payment gateway were integrated into Waystar’s software.
The global payment security market can be segmented based on components (solutions and services), encryption, tokenization, fraud detection and prevention, platforms (web-based and POS-based), enterprise size (large enterprises and small and medium enterprises), industry verticals (BFSI, retail, healthcare, IT and telecom, travel and hospitality, and others), and regions (North America, Europe, Asia Pacific, Latin America, and Rest of the World).
In conclusion, the global payment security market is witnessing robust growth and is expected to continue its upward trajectory. The increasing adoption of digital payments, advancements in technology, and rising awareness about the importance of payment security are driving market demand. However, challenges such as data privacy and scarcity of skilled professionals need to be addressed to sustain the market’s expansion. With North America leading in terms of revenue generation and the Asia Pacific region exhibiting high growth potential, the global payment security market presents significant opportunities for players in the industry.
