Emerging opportunities in the 3DS 2.0 payer authentication market include addressing online payment fraud, expanding BNPL and cryptocurrency use, and integrating AI and blockchain for security. Companies can leverage cloud solutions and digital identity verification to enhance transaction security and user experience.
Dublin, Oct. 24, 2025 (GLOBE NEWSWIRE) -- The "3D Secure 2.0 (3DS 2.0) Payer Authentication Market Report 2025" has been added to ResearchAndMarkets.com's offering.
The 3D secure 2 (3DS 2.0) payer authentication market size has grown rapidly in recent years. It will grow from $1.43 billion in 2024 to $1.65 billion in 2025 at a compound annual growth rate (CAGR) of 15.9%. The growth during the historic period was driven by the increase in online payment fraud, greater consumer adoption of digital payments, the expansion of cross-border transactions, regulatory compliance requirements, and the rapid growth of e-commerce platforms.
The 3DS 2.0 payer authentication market size is expected to see rapid growth in the next few years. It will grow to $2.94 billion in 2029 at a compound annual growth rate (CAGR) of 15.5%. The growth in the forecast period is expected to be fueled by more sophisticated payment fraud, wider adoption of buy now pay later (BNPL) options, the expansion of cryptocurrency and Web3-based payments, and the rise of online fraud and cybersecurity risks.
Key trends projected for the forecast period include integration with digital identity verification, the adoption of cloud-based authentication solutions, the use of blockchain for transaction security, advancements in adaptive authentication, and the application of AI-powered behavioral biometrics.
The rising online payment frauds are expected to drive the growth of the 3D secure 2 (3DS 2.0) payer authentication market in the coming years. Online payment fraud refers to the unauthorized use of payment details to conduct fraudulent transactions over the internet. The increase in fraud is linked to the rise in digital transactions as more users share sensitive payment data across unsecured or unverified platforms. 3D secure 2 (3DS 2.0) payer authentication helps counter this challenge by enabling real-time, risk-based identity verification during transactions. It strengthens security while ensuring a seamless user experience, reducing fraud and enhancing consumer trust in digital payments. For example, in May 2025, UK Finance, a UK-based government department, reported that unauthorized fraud losses rose by 2% to about $915 million (£722 million), with 3.13 million confirmed cases in 2024, marking a 14% increase compared to 2023. This indicates that rising online payment frauds are fueling the demand for 3D secure 2 payer authentication.
Companies in the 3D secure 2 payer authentication market are increasingly focusing on innovative solutions such as authentication services to strengthen transaction security, improve user experience, and minimize fraud risks. Authentication services are systems or processes that verify the identity of a user, device, or system before permitting access to a digital resource, transaction, or service. For example, in February 2023, PayU Payments Private Limited, an India-based online payments solution provider, launched a 3DS 2 SDK authentication service for Indian merchants. This EMVCo-certified service offers a next-generation solution to streamline online card payments, providing businesses with the ability to deliver seamless in-app or web checkouts. It uses biometrics and frictionless flows to ensure faster, more secure authentication, reducing both payment times and cart abandonment.
In December 2023, Entersekt Pty Ltd., a South Africa-based fintech company, acquired the 3-D secure payment authentication business of Modirum Limited for an undisclosed sum. Through this acquisition, Entersekt aims to strengthen its global position in the digital payment security market by expanding its capabilities in secure authentication solutions for banks, card issuers, and merchants. Modirum Limited, based in Finland, specializes in 3D secure 2 payer authentication technology.
Major players in the 3DS 2.0 payer authentication market are American Express Company, Visa Inc., Mastercard Incorporated, Fiserv Inc., Adyen N.V., Naspers Payments Private Limited, Worldline S.A., Elavon Inc., Nets A/S, ACI Worldwide Inc., Marqeta Inc., CardConnect LLC, GMO Payment Gateway Inc., UnionPay International Co. Ltd., BlueSnap Inc., Entersekt (Pty) Ltd., Modirum MDPay Ltd., Braintree Payment Solutions LLC, GPayments Pty Ltd., Cardstream Limited.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 250 |
| Forecast Period | 2025 - 2029 |
| Estimated Market Value (USD) in 2025 | $1.65 Billion |
| Forecasted Market Value (USD) by 2029 | $2.94 Billion |
| Compound Annual Growth Rate | 15.5% |
| Regions Covered | Global |
Key Topics Covered:
Markets Covered:
- By Component: Software; Hardware; Services
- By Deployment: on-Premises; Cloud-Based
- By Enterprise Size: Small and Medium Enterprises; Large Enterprises
- By Application: E-Commerce; Banking; Payment Gateways; Other Applications
- By End-User: Banking, Financial Services and Insurance (BFSI); Retail; Healthcare; Travel and Hospitality; Other End Users
Subsegments:
- By Software: Payment Gateway Software; Security and Encryption Software; Terminal Management Software (TMS); Point of Sale (POS) Operating Systems; Fraud Detection and Risk Management Software; Tokenization Solutions; Digital Wallet Integration
- By Hardware: Payment Terminals; Personal Identification Number (PIN) Pads; Biometric Devices; Mobile Point of Sale (POS) Devices; Smart Card Readers; Contactless or Near Field Communication (NFC) Devices; Embedded Chipsets; Peripheral Devices
- By Services: Installation and Integration Services; Maintenance and Support Services; Consulting and Training Services; Managed Services; Software-as-A-Service (SaaS); Hardware Leasing Services; Remote Troubleshooting; Compliance and Certification Services
3DS 2.0 Payer Authentication Market Regional and Country Analysis
3DS 2.0 Payer Authentication Market Competitive Landscape and Company Profiles
- American Express Company Overview, Products and Services, Strategy and Financial Analysis
- Visa Inc. Overview, Products and Services, Strategy and Financial Analysis
- Mastercard Incorporated Overview, Products and Services, Strategy and Financial Analysis
- Fiserv Inc. Overview, Products and Services, Strategy and Financial Analysis
- Adyen N.V. Overview, Products and Services, Strategy and Financial Analysis
3DS 2.0 Payer Authentication Market Other Major and Innovative Companies
- Naspers Payments Private Limited
- Worldline S.A.
- Elavon Inc.
- Nets A/S
- ACI Worldwide Inc.
- 31.6. Marqeta Inc.
- CardConnect LLC
- GMO Payment Gateway Inc.
- UnionPay International Co. Ltd.
- BlueSnap Inc.
- Entersekt (Pty) Ltd.
- Modirum MDPay Ltd.
- Braintree Payment Solutions LLC
- GPayments Pty Ltd.
- Cardstream Limited
3DS 2.0 Payer Authentication Market Competitive Benchmarking and Dashboard
Key Mergers and Acquisitions in the 3D Secure 2.0 Payer Authentication Market
Recent Developments in the 3D Secure 2.0 Payer Authentication Market
3D Secure 2.0 Payer Authentication Market High Potential Countries, Segments and Strategies
- Countries Offering Most New Opportunities
- Segments Offering Most New Opportunities
- Growth Strategies
For more information about this report visit https://www.researchandmarkets.com/r/mahzia
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