Online Payment Fraud Detection Market

Online Payment Fraud Detection Market Highlights

The global online payment fraud detection market is expected to cross a value of USD 28.5 billion by the end of 2032. The market was valued at USD 7.9 billion in 2023 and is expected to expand at a CAGR of 13.8% between 2024-2032.

• Over the mid-term, the growing use of digital technologies and IoT is the primary factor anticipated to drive the global Online Payment Fraud Detection market.
• The high cost of implementation of these solutions is a major factor to challenge the market growth.
• The North America Online Payment Fraud Detection market is projected to dominate the global market.

Online Payment Fraud Detection Market Outlook

The use of technology and tools for detecting and preventing fraudulent activities in payment transactions that are made online is known as online payment fraud detection. These solutions are designed to analyze transactions in real-time and identify suspicious patterns that may lead to a fraudulent activity.

According to our experts at KD Market Insights, one of the primary growth factors associated with global online payment fraud detection market growth is the increasing use of digital technologies and IoT. As online transactions and digital payments become more prevalent, the instances of online fraud, including payment fraud, would also increase. Hence, the growing need to combat and prevent fraudulent activities would drive the demand for robust fraud detection solutions, and in turn, contribute to the market growth. According to the statistics by the World Bank, the COVID-19 pandemic has resulted in an increase use of digital payments. In the year 2021, making or receiving a digital payment in developing economies reached 57% up from 35% in 2014. ACI Worldwide, Experian, and SecuroNix are some of the significant parties in the global market for online payment fraud detection.

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Online Payment Fraud Detection Market Drivers – Analyst’s Observation

According to the analysts at KD Market Insights, some key growth drivers for the global online payment fraud detection market are:

• Surge in E-Commerce Transactions: The e-commerce industry has been witnessing a steepening growth over the past few years. Our experts predict that retail e-commerce sales around the globe is projected to reach near to USD 6.5 trillion by the end of 2024, while the share of ecommerce out of total retail sales is expected to register close to 25% over the next three years. The broadening of e-commerce sales would generate higher volume of online payments, thereby raising the risks of fraudulent activities.
• Growing Emphasis on Cybersecurity and Fraud Prevention: The regulatory bodies and authorities around the globe are placing increased emphasis on cybersecurity and fraud prevention, especially in the financial and payment sectors. For instance, the National Cybersecurity Agency (NCA) of the United Kingdom works in sync with the Department for Digital, Culture, Media & Sport for enhancing the capabilities of the cybersecurity professionals in the nation. On the other hand, The White House of the United States recently declared the National Cybersecurity Strategy to better secure cyberspace and to explore the potential of its digital future. Such increase emphasis on cybersecurity and fraud prevention is hence expected to drive the demand for online payment fraud detection solutions.

Which Probable Factors Could Hamper the Growing Online Payment Fraud Detection Market Trend?

As per our KD Market Insights analysis, some of the challenges expected to limit the global market growth of online payment fraud detection are:

• High Cost of Implementation: The implementation of online fraud detection systems involves significant upfront costs. These investments may be a challenge for smaller enterprises and hence is expected to be a barrier for the adoption of these solutions.
• Concern for Data Privacy: Online payment fraud detection systems involves the collection of personal and financial data. This, as a result, creates a concern for data privacy of the users. Hence, the compliance with data protection regulations and privacy laws is a major factor predicted to hinder the market growth.

How is the Global Online Payment Fraud Detection Market Segmented?

Our experts at KD Market Insights have segmented the global online payment fraud detection market as:

What are the Probable Factors Influencing the North America Online Payment Fraud Detection Market Forecast?

The North America online payment fraud detection market is majorly driven by the growing volume of online transactions, supported by the e-commerce industry, along with the growing sophistication of cyber threats. The cybercriminals in the region are continually evolving their tactics and techniques to commit fraud. As per our analysis, around 60% of organizations in the United States were victims of payment fraud attacks in the year 2022, while about half of these organizations were unsuccessful in recouping any of the stolen funds.

As per our analysts at KD Market Insights, the following five players lead the North America online payment fraud detection market growth:

• Forter
• Riskified
• Sift
• Kount
• Feedzai

Which Key Players Top the Global Online Payment Fraud Detection Market Share?

As per our analysts at KD Market Insights, the competitive landscape of global online payment fraud detection market facilitates our readers in identifying their closest competitors. The manufacturers who are associated with online payment fraud detection market are raising their focus on expanding their presence, as well as their market share. The market has also been witnessing an upward movement in the number of collaborations between research institutions and key players, aimed at introducing advanced technologies and innovation of new products. Here is a list of the key players who top the global online payment fraud detection market share:

• ACI Worldwide
• Experian
• SecuroNix
• Accertify
• Feedzai
• CaseWare
• FRISS
• MaxMind
• Gurucul
• DataVisor
• PayPal
• Visa
• SAS institute
• SAP SE
• Microsoft Corporation
• F5 Inc.
• Ingenio AWS
• PerimeterX
• OneSpan
• Signifyd
• Cleafy
• Pondera Solutions

What are the Recent Developments Observed in the Online Payment Fraud Detection Market?

Over the years, the experts at KD Market Insights have been observing the recent developments associated with global online payment fraud detection market trends. Our expert’s market forecast analysis has recorded the market players adopting plentiful of key strategies including new product launches, mergers & acquisitions, and collaborations.

For instance, Experian stated that it has launched a cloud-based fraud solution known as AI:drian, which is powered by machine learning technology.

Further, TransUnion informed that it has launched TruValidate Device Risk with Behavioral Analytics for preventing fraud of business organizations based on device recognition, context, and user behavior.