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Online Payment Fraud Detection Market

Market Study on Online Payment Fraud Detection: The increased use of Online Payment Applications to propel Market Growth

Online Payment Fraud Detection Market Segmented By Solutions, Service Components with On-Premise, Cloud-based Online Payment Fraud Detection Deployment

Online Payment Fraud Detection Market Outlook (2022-2032)

The online payment fraud detection market is anticipated to have a prodigious CAGR of 13.6% during the period of 2022-2032. The market is anticipated to reach US$ 25.1 Billion in 2032, from US$ 7 Billion in 2022.

“The rise in the adoption of advanced technology and artificial intelligence to manage payment gateways, which is anticipated to propel the growth of online payment fraud detection market.”

Attributes

Details

Online Payment Fraud Detection Market CAGR (2022-2032)

13.6%

Online Payment Fraud Detection Market Size (2022)

US$ 7 Billion

Online Payment Fraud Detection Market Size (2032)

US$ 25.1 Billion

Integration of AI in online payment fraud management solutions is one of the key factors that has influenced the implementation of online payment fraud detection solutions by several institutions.

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What are the Factors which Frontline the Growth of Online Payment Fraud Detection Market?

The major factors that are expected to drive the growth of the online payment fraud detection market include increase in revenue loss due to fraud as well as the Adoption of digitalization and IoT, which have increased the adoption rate of fraud detection and prevention system.

The increased use of online payment applications and mobile banking services has resulted in an increase in the number of bogus websites and mobile apps. Fake websites and online apps are on the rise in other industries, including retail and e-commerce, manufacturing, and healthcare. These websites and apps imitate real retail stores and home delivery services, luring clients into making fraudulent online transactions. Customers in the banking industry are increasingly using mobile applications for a variety of purposes, including online payment, statement review, complaint registration, and feedback.

According to the Boston Consulting Group (BCG), almost 70% of urbanites worldwide are digitally persuaded to buy financial products and services through online banking apps or mobile banking websites. In the current economic climate, many firms are integrating solutions across their business units to progress their business road maps. The growing number of internet users, increasing acceptance of digital payment methods, and rising number of start-ups are some major factors that are expected to accelerate the growth of the Online Fraud Payment Detection Market.

Moreover, the widespread adoption of technologies including card-chip and new digital channels are emerging resulting in fraudsters becoming more adaptive and collaborative with the nature of financial fraud which is growing rapidly. Increasing internet penetration and digitization across emerging and undeveloped economies are propelling the growth of online payment fraud detection market across the globe. Hence financial institutions, merchants, and payment service providers are adopting the artificial intelligence (AI) technology for managing their online payment fraud incidents and reducing fraud losses, thereby enhancing the customer experience.

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What are the Opportunities for the Online Payment Fraud Detection Market?

Various opportunities in the online payment fraud detection market include the increase in use of Artificial Intelligence, Predictive Analysis and Machine Learning in banking sector, and increasing demand for fraud detection and prevention solutions in SMEs, which are expected to boost the market growth during the forecast period.

Moreover, data breaches and fraudulent activities are increasing revenue losses from millions of transactions each day over multiple channels, on the back of increase in internet penetration and digitalization around the globe. Therefore, the online payment fraud detection market is anticipated to grow significantly in upcoming years. Moreover, the rise in the adoption of advanced technology and artificial intelligence to manage payment gateways, which is anticipated to propel the growth of online payment fraud detection market.

With growing technological advancements, there is a vast impact of digitalization leading to growing adoption of the internet connected devices, along with emerging e-commerce, e-tailing and e-banking activities across the globe. These advancements are further leading to growing number of challenges faced by these industries, such as revenue losses through online payment frauds. These challenges are anticipated to drive the demand for online payment fraud detection solutions, thereby driving the growth of the market.

Integration of AI in online payment fraud management solutions is one of the key factors that has influenced the implementation of online payment fraud detection solutions by several institutions. Cognitive systems help in data analysis and provide actionable insights to meet customer demands. Moreover, increasing complexity in online frauds is forcing banks and other institutions to deploy several new fraud management solutions to reduce the noise level in the system and meet the customer expectation.

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What are the Challenges faced by the Online Payment Fraud Detection Market?

Online payment fraud detection provides numerous features such as deeper win insights and attribution around drivers, as well as greater sales targeting efficiency, but has few restraints as well. Some major factors that are expected to restrain the growth of the global Online Payment Fraud Detection Market include the unavailability of skilled security professionals and lack of awareness related to digital frauds in SMEs.

Moreover, the high operational and installation costs incurred by the organizations pertaining to the adoption of online payment fraud detection solutions are some of the restraining factors that are anticipated to hamper the growth of the market over the forecast period. In addition, corporations keep their important records and documentation of their customer’s data on the servers. Thus, to protect and securing the records is essential for businesses from money launderers. Though, sometimes advanced cyber-attacks and novel anonymous threats are expected to challenge the traditional FDP solutions.

Another market limitation for the growth is the lack of acceptance and responsiveness across the developing nations across the Middle East and Africa, APAC, South America, such as Mexico, Argentina, Chile, Peru, Colombia, and the Caribbean countries. Additionally, with the adoption of EMV cards, the identity frauds have gradually shifted from offline to online. The complexity of frauds has also increased considering the rise of fraud accounts. Fraudsters are getting more sophisticated in their attacks. About one and a half million victims who had an existing account have an intermediary account in their name first. The sheer volume of Personal Identifiable Information (PII) available in the illegal market is also an added advantage for fraudsters.

The growing consumer expectations for 24/7 digital access have forced several organizations, such as financial institutions and merchants, to abandon more stringent manual application review processes to open accounts more quickly, creating more loopholes for crimes to happen. According to the Kaspersky and Symantec, 1%–4% of the IC systems are attacked by cryptocurrency malware each month which are complex by nature. Developing countries are mostly the primary targets where most attacks occur through internet and emails.

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Comparative View of Adjacent Online Payment Fraud Detection Market

Attributes

Online Payment Fraud Detection Market

CAGR (2022-2032)

13.6%

Market Value (2032)

US$ 25.1 Billion

Growth Factor

The rise in the adoption of advanced technology and artificial intelligence to manage payment gateways, which is anticipated to propel the growth of online payment fraud detection market.

Opportunity

The challenges arising from increasing use of internet connected devices and promotion of digitalization by the government is expected to fuel the market growth.

Key Trends

Integration of AI in online payment fraud management solutions is one of the key factors that has influenced the implementation of online payment fraud detection solutions by several institutions.

Comparative View of Adjacent E-Commerce Fraud Detection Market

Attributes

E-Commerce Fraud Detection Market

CAGR (2022-2032)

19.6%

Market Value (2032)

US$ 69.1 Billion

Growth Factor

Adoption of digitalization and IoT increased the adoption rate of e-commerce Fraud Detection market.

Opportunity

Increase in the use of AI and ML in banking sector to boost e-commerce Detection market.

Key Trends

The rising investment by major market players to introduce secure fraud solutions across the various industries.

Comparative View of Adjacent Anomaly Detection Market

Attributes

Anomaly Detection Market

CAGR (2022-2032)

16.4%

Market Value (2032)

US$ 20.5 Billion

Growth Factor

The increasing number of connected devices in the field of banking and financial sector, healthcare, manufacturing, IT and telecom, defense, and the government is expected to drive the anomaly detection market over the forecast period.

Opportunity

The advent of AI technologies, coupled with machine learning, is enabling the companies to better understand the factors responsible for the sudden change in behaviour.

Key Trends

The growing development of high-performance data analysis (HPDA) has had a direct impact on the growth of anomaly detection for the professional market.

The banking and financial services sector are early adopters of technology to prevent risks. Due to large online data transactions, financial institutions face a lot of vulnerability. According to Facebook and BCG, the adoption rate of online banking in India is expected to be doubled to 150 million by 2020 which might increase the chances of fraudulent activities.

As there is increase in digital banking processes it has become more important for financial institutions to protect transactions from fraud. Today, financial institutions are focused not only on financial risk mitigation but also on fraud detection – in real-time. Fraud detection methods are evolving with the introduction of pattern recognition. The use of machine learning technologies has given major boost to artificial intelligence to defend any system as ML can protect companies from insider fraud and can also identify any anomalies in individuals who might leak data. An increase in the demand for Artificial Intelligence and Machine Learning has led to an increase in the adoption of online payment fraud detection solutions.

Moreover, with the emergence of E-commerce, E-banking and advanced digital payment methods, new fraudulent practices are anticipated to grow. Additionally, challenges arising from increasing use of internet connected devices and promotion of digitalization by the government, around the globe such as growing number and types of online fraudulent activities are expected to benefit the expansion of the online payment fraud detection market over the forecast period.

Additionally, rising technological advancements along with integration of artificial intelligence that ensures operational efficiency, to monitor cross channel transactions on real time basis in the businesses are expected to be key drivers for the market growth. These factors, along with implementation of stringent laws in order to minimize the rapid rise in the revenue losses and the cost of frauds are anticipated to promote the growth of online payment fraud detection market.

What is the Segmentation Outlook for the Online Payment Fraud Detection by Component?

On the basis of component, the market is further sub-segmented into: Solutions and Services. The solutions segment of the online payment fraud detection market is expected to hold the largest CAGR of 13.2% during the forecast period, owing to the growing adoption of advanced security systems by the organizations.

On the basis of industry, the BFSI sector is estimated to account for major market share over the forecast period and is expected to grow at a substantial rate on the back of primary focus and increasing initiatives to prevent frauds, in the monetary transactions. Moreover, the healthcare segment is anticipated to witness highest growth rate over the forecast period on account of increasing health concerns and medical services pertaining to the maintenance of online health records.

Which Segment is likely to lead the Online Payment Fraud Detection Market by Deployment?

On the basis of deployment, the market is further sub-segmented into: on-premise and cloud. The cloud segment of the online payment fraud detection market is anticipated to gain traction in coming years with a CAGR of 13.1% during the forecast period, attributed to the advancements in artificial intelligence, and data analytics.

Small & mid-sized enterprises are likely to be the potential customers of cloud-based fraud detection and prevention software. Limited security spending’s & IT infrastructure fuel the demand for cloud-based solutions across the SME’s.

Which is the Key Region in the Online Payment Fraud Detection Market?

Regions

CAGR (2022-2032)

United States

13.4%

China

13.1%

Japan

12.1%

UK

12.6%

North America dominates the online payment fraud detection market during the forecast period, owing to the early adoption of online-based services among people. The market in North America is expected to lead the market over the forecast period on the back of presence of key vendors, offering wide range of solutions for fraud detection in the region. The U.S is expected to represent a massive growth of US$ 8.2 Billion in the Online Payment Fraud Detection Market, with a CAGR of 13.4% during the forecast period.

Furthermore, the market in Asia Pacific is expected to project highest growth rate over the forecast period. The factors contributing towards the market expansion in the region include increasing inclination towards digitalization and increase in spending and implementation of fraud detection and prevention solutions. Moreover, rising economies of Asia Pacific, such as India and China are the contributing towards the market growth. China is expected to represent a CAGR of 13.1%, to reach a market share of US$ 2 Billion during the forecast period.

On the other hand, Japan is expected to represent a CAGR of 12.1%, to reach a market share of US$ 1.6 Billion during the forecast period. Besides, the market in Europe is anticipated to grow at an accelerating rate owing to increasing presence of cashless economies in the region. UK is expected to represent a CAGR of 12.6%, to reach a market share of US$ 1.1 Billion during the forecast period.

How does Competition Influence the Online Payment Fraud Detection Market?

ACI Worldwide, Experian,SecuroNix, Accertify, Feedzai, CaseWare, FRISS, MaxMind, Gurucul DataVisor, PayPal, Visa, SAS institute, SAP SE, Microsoft Corporation, F5, Inc., Ingenico AWS, PerimeterX, OneSpan, Signifyd, Cleafy, and Pondera Solutions, among others are the top companies in the global online payment fraud detection market.

In order to strengthen their position in the global online payment fraud detection market, organizations are focused on industry collaborations, mergers & acquisitions, and partnerships.

The research offers a comprehensive competition analysis of some top competitors in the online payment fraud detection market, including company biographies, recent developments, and significant market strategies. It shows how the competitors are taking advantage of the opportunities present in the online payment fraud detection market.

  • In April 2021, NICE Actimize launched SURVEIL-X, an AI-powered suitability and surveillance solution for the wealth and insurance sector. The solution developed on holistic surveillance platform called as SURVEIL-X.
  • In February 2021, ClearSale LLC launched an e-commerce podcast to detect and mitigate fraud activities. The solution is developed to discuss challenges and emerging trends related to fraud across e-commerce and social media platforms during the ongoing COVID-19 pandemic.
  • In November 2020, BAE Systems upgraded its NetReveal KYC/CDD, watch list screening, and anti-money laundering transaction monitoring, and filtering solutions services.
  • In October 2020, Thales Group, Gemalto launched an identity verification suite during a pandemic. The solution helps to minimize ID fraud by digitally checking customers' identities by verifying documents authenticity. Such active initiatives are expected to drive the fraud detection and prevention market growth in the forthcoming period.

Report Scope

Attributes

Details

Forecast Period

2022-2032

Historical Data Available For

2015-2021

Market Analysis

USD Mn for Value

Key Countries Covered

  • U.S.
  • Canada
  • Brazil
  • Mexico
  • Germany
  • Italy
  • France
  • U.K.
  • BENELUX
  • China
  • Japan
  • South Korea
  • GCC Countries
  • Turkey
  • South Africa

By Market Segments

  • Component
  • Deployment
  • Vertical
  • Region

Key Companies Profiled

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

Pricing

Available Upon Request

Key Segments Covered in the Online Payment Fraud Detection Market Report

Online Payment Fraud Detection by Component

  • Online Payment Fraud Detection Solutions
  • Online Payment Fraud Detection Services

Online Payment Fraud Detection by Deployment

  • On-Premise Online Payment Fraud Detection
  • Cloud-based Online Payment Fraud Detection

Online Payment Fraud Detection by Vertical

  • Online Payment Fraud Detection for BFSI
  • Online Payment Fraud Detection for IT & Telecom
  • Online Payment Fraud Detection for Retail & Consumer Packaged Goods
  • Online Payment Fraud Detection for Government
  • Online Payment Fraud Detection for Real Estate & Construction
  • Online Payment Fraud Detection for Energy & Utilities
  • Online Payment Fraud Detection for Other Verticals

Online Payment Fraud Detection by Region

  • North America Online Payment Fraud Detection Market
  • Europe Online Payment Fraud Detection Market
  • Asia Pacific Online Payment Fraud Detection Market
  • Middle East and Africa Online Payment Fraud Detection Market
  • Latin America Online Payment Fraud Detection Market

- Companies Covered in This Report -

  • IBM
  • FICO
  • SAS
  • BAE Systems
  • DXC Technology
  • SAP
  • ACI Worldwide
  • Fiserv
  • NICE Systems
  • Experian

- Frequently Asked Questions -

As per PMR, online payment fraud detection market is projected to document a CAGR of 13.6% from 2022-2032.

The U.S is the leading country, with an anticipated market share of US$ 8.2 Billion by 2032.

On the basis of component, the solutions category leads the market with the projected CAGR of 13.2% by 2032

The online payment fraud detection market is predicted to grow US$ 25.1 Billion by 2032.

On the basis of deployment, the cloud category leads the market with the projected CAGR of 13.1% in 2032.

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