Market Research Report
Middle East and Africa 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)
|Middle East and Africa 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: 80 Pages
Delivery time: 1-2 business days
The 3D secure authentication market in MEA is expected to grow from US$ 25.35 million in 2021 to US$ 54.88 million by 2028; it is estimated to grow at a CAGR of 11.7% from 2021 to 2028.
Secure 1.0 has brought additional security; however, it resulted into bad user experience and has costed US$ 1.2 billion in declined card-not-present transactions annually. Therefore, 3D Secure 2.0 has been developed to resolve issues related to decline card and failed transactions. 3D Secure 2.0 is a robust authentication protocol developed around smart mobile phones and modern trends. With the European payment services directive being active from 2019, the card schemes and merchants have started to support updated version of 3D Secure. 3DS2 brings improved user experience with greater security. The updated protocols made for addressing issues faced in older version of 3D are as follows: Improved shopping experience - With large proportion of people shopping using apps, the 3D Secure 2.0 improves shopping experience by authenticating the app-based transactions seamlessly and in a minimal time. Also, the businesses can be whitelisted. The trusted merchants would be exempted from 3D Secure. This feature would permit the customers who shop frequently with a given business are not supposed to have additional authentication. Frictionless authentication - It provides customers with better authentication options such as one-time password/biometric during risky transactions. The single authentication checkout process is a mobile-friendly and intuitive process. Additionally, the increasing cases of frauds related with online payments are among the other factors expected to fuel the demand for 3D secure authentication in MEA during the forecast period.
Based on end user, the MEA 3D secure authentication market for the merchants & payment processors segment is expected to grow fastest during the forecast period. Merchants use 3D secure authentication solutions to mitigate the risk of online fraud. For instance, GPayments is a 3D secure leader and 3D secure issuing company. The company caters to more than 100,000 merchants, 100 banks, and 33 countries. The merchant utilizes authentication data captured as a part of 3D secure process to submit an authorization for the approval. However, 3D secure authentication technology is not completely adopted by merchants. In the current scenario, all merchants have not fully transitioned from 3D Secure 1 to 3D Secure 2. Nevertheless, players like Marqeta support both 3D Secure 2 & 3D Secure 1 for Visa.
The COVID-19 pandemic has severely impacted MEA due to the wide spread of novel coronavirus. The region has highly populated countries, which leads to the greater risk of the spread. Saudi Arabia, the UAE, South Africa, Egypt, Morocco, and Kuwait are the main MEA countries that have witnessed the adverse effects of the pandemic. Most operations in the region have been suspended due to an increase in the number of COVID-19 confirmed cases in the region. However, the surge in e-commerce channels propels the adoption of online payments to avoid social interaction and contact among individuals. This factor is certainly fostering the adoption of 3D secure authentication technology in MEA.
The overall MEA 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 MEA 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 MEA 3D secure authentication market. GPayments Pvt. Ltd.; iZealiant Technologies Pvt. Ltd.; Modirum; Netcetera; Ravelin Technology Ltd; and UL, LLC are among key players operating in the market.