Market Research Report
Asia Pacific 3D Secure Authentication Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Component (Solution and Services) and End User (Banks and Merchant & Payment Processor)
|Asia Pacific 3D Secure Authentication Market Forecast to 2028 - COVID-19 Impact and Regional Analysis By Component (Solution and Services) and End User (Banks and Merchant & Payment Processor)|
Published: August 5, 2021
The Insight Partners
Content info: 94 Pages
Delivery time: 1-2 business days
The 3D secure authentication market in APAC is expected to grow from US$ 103.06 million in 2021 to US$ 245.18 million by 2028; it is estimated to grow at a CAGR of 13.2% from 2021 to 2028.
The Asian economy is witnessing an adoption of 3D secure authentication technology, owing to high usage of online shopping portals. Countries such as China, India, Japan, and Singapore are adopting authentication technology within their territories. The rising demand for digital transformation in banks has led to increase in use of 3D secure authentication in Asia. In the Asian market, introduction of real-time payments has resulted into drastic rise in payment fraud, with four in five APAC banks experiencing increase in losses, as per the results showed from Fico survey in January 2020. Nearly a quarter has forecasted that fraud cases will increase significantly in coming year. Moreover, regulatory changes and individuals aimed at facilitating adoption of open banking is also resulting into digital banking fraud. Factors mentioned above are predicted to generate lucrative growth opportunities for the adoption of 3D secure authentication technology. Furthermore, in the wake of COVID-19, e-commerce retailers throughout Asia have witnessed explosive sales growth. In countries such as Singapore, Shopee- and e-commerce platform observed that their gross merchandise value grown up from 74.3% to reach US$ 6.2 billion for the first quarter of 2020. The total number of orders increased to 429.8 million in 2020 Q1, a 111.2% increase year-on-year. This rise in order numbers clearly presents more growth opportunities for 3D secure authentication technology. Moreover, other Asian countries such as India, have also witnessed rise in their e-commerce platform. The Indian E-commerce market is projected to reach US$ 200 billion by 2026 from US$ 38.5 billion in 2017. Factors such as rising smartphone and internet penetration have led to an increase in online shopping portals and online payments. Moreover, Infibeam Avenues inked an agreement with Bank of Muscat Oman's second-largest bank in November 2020, to process bank's online card transactions of different payment networks through CCAvenue Payment Gateway Service. Such agreements for making online payments are projected to provide ample of growth opportunities to 3D secure authentication technology providers. Additionally, the emergence of updated version of 3D secure authentication technology would fuel the growth of the 3D secure authentication market in APAC during the forecast period.
Based on component, the 3D secure authentication market for the services segment is expected to grow fastest during the forecast period. The 3D secure authentication drives more efficient security and reduces risk associated with online fraud. To ensure proper performance of 3D secure authentication tool, professional and support services are primarily provided. The support services deliver total customer satisfaction by delivering timely, precise, and complete problem resolution. SecurionPay offers customer and technical support services with an aim to maximize potential of its payment gateway. Additionally, Take Payments is another company offering services in respect to online payments. Presence of such companies offering additional services would help in boosting the adoption of 3D secure authentication solutions. Also, training services are provided to guide end users about this solution.
The COVID-19 pandemic has severely impacted APAC due to the wide spread of novel coronavirus. The region has highly populated countries, which leads to the greater risk of the spread. According to the Organization for Economic Co-operation and Development (OECD), the pandemic has affected major economies such as China, India, Australia, and Japan, which are experiencing inflation. India is the worst-hit country in this region due to the pandemic. In Asian economy, the e-commerce and m-commerce sales are increasing drastically in the wake of the COVID-19 pandemic. Countries such as Singapore, India, and China have observed a positive trend in the penetration of e-commerce channels. Owing to the rise in the e-commerce orders due to the increasing COVID-19 confirmed cases, the online payments have increased drastically, which eventually propelled the adoption of 3D authentication technology.
The overall APAC 3D secure authentication market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the APAC 3D secure authentication market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the APAC 3D secure authentication market. AsiaPay Limited; GPayments Pvt. Ltd.; iZealiant Technologies Pvt. Ltd.; Modirum; Netcetera; Ravelin Technology Ltd; RS Software; and UL, LLC are among key players operating in the market.