Mobile Payment Security Software Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market can be segmented by End User Industry (Telecom and Information Technology, Banking and Financial Service, Government, Transportation, Retail, Entertainment and Media), and Geography.

Market Snapshot

Mobile Payment Security Software Market Size
Study Period: 2020-2027
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 9.2 %

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Market Overview

Global Mobile Payment Security Software Market is expected to grow at a CAGR of 9.2% over the forecast period. The growing popularity of mobile wallets in developed and developing nations is spurring demand for security software by opening up a wide range of opportunities for businesses and service providers.

  • Due to rising smartphone adoption and its several advantages, including better customer experience that reduces line waiting times and broadens payment options for clients, mobile payment methods are predicted to rise rapidly.
  • Mobile payments can be made using Near Field Communication, QR codes, or SMS (NFC). The use of mobile devices for various tasks, such as secure financial transactions through mobile applications or web banking sites, is becoming more commonplace among consumers. The market is anticipated to develop due to the increasing use of multi-factor authentication methods.
  • The expansion of the market is hampered by pirated mobile payment security software. It directly raises security concerns, which impacts the legitimacy of mobile payments.
  • Throughout the projection period, the market for mobile payment security software is anticipated to grow due to the rising popularity of digital payments such as credit/debit cards, mobile wallets, and internet transactions. One of the main elements driving the market's expansion is the rising incidence of data breaches. According to the FIS Global Payments Report, by 2025, the use of digital wallets will account for slightly over half (52.5%) of the value of eCommerce transactions globally, up from 48.6% in 2021. According to the estimate, the use of digital wallets will expand to over 39% at physical points of sale, up roughly 10% from 2021 levels. Global mobile payment growth is further accelerated by the rapidly growing loyalty programs in the mobile wallet space.
  • Mobile app breaches and the use of mobile payment applications have both skyrocketed in recent years. Data breaches typically start with a public version of the app that contains defects in the code that a hacker can use to steal data. Malicious programs impact over 11.6 million mobile devices at any time. The most prevalent methods leading to data breaches come from risky app behavior, including aggressive data collection and sharing. For instance, in August 2022 - BharatPay's backend database, which contained users' personal information, bank balances, and transaction data from February 2018 to August 2022, was discovered to have been leaked on a cybercrime forum by CloudSEK's threat intelligence division, XVigil.
  • Due to an increase in the use of digital payment services following the recent COVID-19 outbreak, the market for mobile payment security software is anticipated to experience substantial development.

Scope of the Report

Industries such as Telecom & Information Technology, Banking & Financial services, Government, Transportation, Retail, Entertainment, and Media are increasingly adopting mobile payments for ease in transaction, given the recent growing usage of wireless networks. This has also led to increased payment fraud, owing to which the end-user industries are adopting payment security solutions to provide secure payment transactions by their customers.

The market can be segmented by End User Industry (Telecom and Information Technology, Banking and Financial services, Government, Transportation, Retail, Entertainment, and Media) and Geography.

End-user Industry
Telecom & Information Technology
Banking & Financial Service
Government
Transportation
Retail
Entertainment and Media
Other End User Industries
Geography
North America
Europe
Asia Pacific
Latin America
Middle East and Africa

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Key Market Trends

Retail Industry to Dominate the Market.

  • In the past five years, retail has become a mobile function, especially with the popularity of mobile e-wallets. The introduction of 5G enhances innovations in retail technology and, in turn, benefits the consumer. However, the security vulnerabilities related to these wallets are driving the market demand.
  • Global retailers such as Walmart, Target, and Dunkin are adopting mobile payments by leveraging the power of loyalty and using mobile payments to make the checkout process as painless as possible. This demands an increasing level of payment security to maintain customer relationships.
  • Rising global e-commerce transactions are further driving the market demand. According to U.S. Commerce Department, consumers spent USD 517.36 billion online with U.S. merchants in 2018, up 15% from USD 449.88 billion in 2017. This trend is expected to continue and give rise to mobile payment security software solutions.
  • Rambus has rolled out "Vaultify Shop," which enables retailers to digitize credit cards, gift cards, loyalty points, and coupons into a single secure mobile wallet and create a frictionless shopping experience for consumers.
  • Due to COVID-19, the e-commerce sector is witnessing a spike in demand as consumers order essential items such as food and clothes, among others, through e-commerce websites, where most consumers prefer the digital mode of payment. According to new PYMNTS statistics, Amazon accounted for nearly 60% of all online retail sales in the U.S. in 2021, demonstrating the company's increasing control over eCommerce sales and the continuance of the stairstep market share growth it has had over the previous 20 years. Given that the company increased its share of domestic retail from 28.1% in 2014 to 56.7% in 2021, the new data contradict the theory that it becomes more challenging for large businesses to expand in the online retail market.
Retail e-commerce sales

North America to Dominate the Market Share

  • Further, it has been estimated that digital/mobile wallets will soon overtake credit cards to become the leading online payment method to account for 37% of North American eCommerce spending by 2023. Also, the regulation of retail payment systems is dispersed across multiple state and federal regulators. For example, payment systems are subject to federal consumer protection regulation under the Electronic Fund Transfer Act (P.L. 95-630), anti-money laundering requirements under the Bank Secrecy Act (P.L. 91-508), and various state licensing, safety and soundness, anti-money laundering, and consumer protection requirements.
  • The U.S. is an established consumer market and is focused on innovation. Companies like PayPal and Apple Pay have a strong presence in the region with a slow growth rate. Apple Pay allows users to make purchases in stores, in apps, and online securely without handing over their credit card information every time. In a store, the mobile wallet uses near-field communication technology, which allows two devices placed within a few centimeters of each other to exchange data. To keep the information private, Apple Pay creates a unique token every time the user uses it, so merchants never get the actual card number. Meanwhile, PayPal, a major U.S. third-party payment platform, has a fraud rate of 0.32 percent.
  • Moreover, the popularity of peer-to-peer payments (P2P) proved convenience might be one of the strongest motivators. Consumer Reports identified three areas of P2P payment app concerns and risks for consumers: problem resolution related to misdirected payments, the importance of payment security, and privacy concerns. But this has not stopped consumers from embracing this technology.
  • However, the Cybersecurity threat remains a significant issue and can hamper the market's growth. For instance, according to TransUnion, the number of digital fraud attempts in the United States increased by 25.07% in the first four months of 2021, compared to the final four months of 2020, ranging from identity theft to phishing efforts. During the same period, digital fraud attacks against financial services businesses surged by 109% in the United States.
Mobile Payment Security

Competitive Landscape

The market is moving towards a fragmented side due to the highly competitive nature of the market as the number of vendors offering mobile payment security solutions is growing. Partnerships are majorly occurring in the domain, leading to the product portfolio's expansion.

  • December 2021 - Google Pay customers will be able to shop safely using their Mastercard credit and debit cards thanks to the tokenization deployment that Mastercard and Google announced. Using tokenization, Mastercard cardholders can make purchases using a secure digital token without giving a retailer their credit or debit card information, such as the number and expiration date.
  • In September 2021 - A definite agreement to buy Antelop Solutions was announced by Entrust, a pioneer in the secure payment card industry. Financial institutions will benefit from an unrivaled array of digital and physical credential issuance and transaction security solutions thanks to the combination of Entrust and Antelop Solutions.

Recent Development

  • June 2022 - PayU subsidiary Wibmo received recognition as a "PCI Secure SLC Certified Company." Having received this certification, the company is currently among the top 10 globally. More security measures are required to maintain the safety of the software and platforms that customers use, especially in the payments industry, due to the rise in cybercrime that has accompanied the development of digital transactions.
  • March 2022 - The Centre for Development of Advanced Computing (C-DAC) in Pune, India, introduced three significant products related to supercomputers, wireless communication networks, and M-Kavach 2, an android-based mobile device security solution addressing emerging threats to offer security solutions for cyber offenses.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Introduction to Market Drivers and Restraints

    3. 4.3 Market Drivers

      1. 4.3.1 Increasing Mobile Payments Due to Increased Smartphone Penetration is Driving the Market Demand

    4. 4.4 Market Restraints

      1. 4.4.1 Increased Risk of Exploitation Through Piracy is Restraining the Market Demand

    5. 4.5 Value Chain Analysis

    6. 4.6 Industry Attractiveness - Porter's Five Force Analysis

      1. 4.6.1 Threat of New Entrants

      2. 4.6.2 Bargaining Power of Buyers/Consumers

      3. 4.6.3 Bargaining Power of Suppliers

      4. 4.6.4 Threat of Substitute Products

      5. 4.6.5 Intensity of Competitive Rivalry

    7. 4.7 Assessment of COVID-19 impact on the industry

  5. 5. MARKET SEGMENTATION

    1. 5.1 End-user Industry

      1. 5.1.1 Telecom & Information Technology

      2. 5.1.2 Banking & Financial Service

      3. 5.1.3 Government

      4. 5.1.4 Transportation

      5. 5.1.5 Retail

      6. 5.1.6 Entertainment and Media

      7. 5.1.7 Other End User Industries

    2. 5.2 Geography

      1. 5.2.1 North America

      2. 5.2.2 Europe

      3. 5.2.3 Asia Pacific

      4. 5.2.4 Latin America

      5. 5.2.5 Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles*

      1. 6.1.1 Broadcom Corporation

      2. 6.1.2 OneSpan

      3. 6.1.3 UL Transaction Security

      4. 6.1.4 MagTek Inc.

      5. 6.1.5 NCR Corporation

      6. 6.1.6 Fidelity National Information Services Inc.

      7. 6.1.7 Ingenico Group

      8. 6.1.8 FICO Enterprise

      9. 6.1.9 Chase Paymentech Solutions

      10. 6.1.10 Braintree Payment Solutions LLC

      11. 6.1.11 Bluefin Payment Systems LLC

  7. 7. INVESTMENT ANALYSIS

  8. 8. FUTURE OF THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Mobile Payment Security Software Market market is studied from 2020 - 2027.

The Mobile Payment Security Software Market is growing at a CAGR of 9.2% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2020.

UL Transaction Security, Braintree Payment Solutions llc (Paypal holding inc.) , OneSpan, NCR Corporation, Fidelity National Information Services Inc. are the major companies operating in Mobile Payment Security Software Market.

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