Mobile Payment Security Software Market Size

Mobile Payment Security Software Market Analysis

The Mobile Payment Security Software Market size is estimated at USD 14.13 billion in 2024, and is expected to reach USD 24.81 billion by 2029, growing at a CAGR of 11.93% during the forecast period (2024-2029).

The rising popularity of mobile wallets in both developed and developing countries is driving up demand for security software by creating new opportunities for companies and service providers.

• Mobile payment methods are expected to grow significantly due to increased smartphone penetration and its several benefits, including improved customer experience that minimizes line waiting times and broadens client payment options.
• QR codes, Near Field Communication (NFC), and SMS (NFC) can all be employed for accepting mobile payments. Furthermore, users increasingly use mobile devices for various purposes, such as safe financial transactions via mobile applications or web banking sites. The industry is anticipated to rise as multi-factor authentication methods are adopted.
• The market's progress could be improved by pirated mobile payment security software. It immediately creates security concerns, affecting the authenticity of mobile payments. The need to safeguard customer data, adhere to rules, and keep up with the changing threat landscape are driving factors behind the increase. The sophistication of cybercriminals' attacks is increasing due to technological improvements. New and more sophisticated payment security solutions have been developed to stay up with the changing threat landscape.
• The mobile payment security software industry is anticipated to surge throughout the forecast period owing to the increasing use of digital payments such as credit/debit cards, mobile wallets, and online transactions. However, the rapid surge in the frequency of data breaches is one of the primary factors driving the market's rise. According to the FIS Global Payments Report, digital wallets will account for slightly more than half (52.5%) of the value of global eCommerce transactions by 2025, up from 48.6% in 2021. As per the estimation, digital wallets would increase to more than 39% at physical points of sale, a 10% increase from 2021 levels. The rapidly expanding loyalty programs in the mobile wallet market accelerate global mobile payment growth.
• Both mobile app breaches and the use of mobile payment apps have increased dramatically in recent years. Data breaches often begin with a public app version with coding defects that hackers may exploit to steal data. At any given moment, malicious programs affect approximately 11.6 million mobile devices. Furthermore, the most common reasons for data breaches include risky app behavior, such as aggressive data collecting and sharing. For example, in August 2022, CloudSEK's threat intelligence section, XVigil, revealed that BharatPay's backend database, which held customers' personal information, bank balances, and transaction data from February 2018 to August 2022, had been exposed on a cybercrime forum.
• During the projection period, this market would rise due to the increasing popularity of multi-factor authentication methods. Multi-factor authentication is a verification mechanism that guards against unauthorized access to consumer financial information using two or more distinct authentication methods. To validate payment transactions on mobile devices, this method uses various authentication strategies, including smart cards, phone-based authentication, and biometrics technology.
• The mobile payment security software industry was anticipated to proliferate due to the COVID-19 outbreak and the increased use of digital payment systems. The COVID-19 pandemic had a favorable effect on the market's expansion. Consumers transitioned from using physical cash to contactless and digital payment methods due to the COVID-19 pandemic. In light of the COVID-19 outbreak, retailers worked harder than ever to accept digital payments.