Market Trends of Out of Band Authentication Industry
This section covers the major market trends shaping the Out of Band Authentication Market according to our research experts:
BFSI Segment is Expected to Witness Significant Growth and Drive the Market
- Increasing internet penetration, growing m-commerce market, and early adoption of online payment services is expected to drive the out of band authentication market, which is often used in financial institutions and other organizations with high-security requirements.
- Most financial institutions are utilizing various forms of out of band authentication methods, for instance, voiceprint technology used to provide biometric verification by the user or the user is asked to text a code displayed after login from their registered smartphone to the institution. It secures the communications with only a slight increase in complexity for a user. Moreover, the methods are also much cheaper to financial institutions to deploy than security key fobs or more complex biometric methods and hence, are expected to drive the market.
- In addition, the number of security concerns associated with mobile payments is on the rise and is expected to compel the market growth. For example, malicious app clones are a major problem when it comes to android phones as such apps are either published on alternate, less regulated app stores or distributed as standalone.apk packages. In the case of iOS fraudsters target via jail-broken devices. Owing to this, various vendors are increasingly spending on payment security and are tying up with the out of band authentication providers and accelerating the market.
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North America Will Experience Significant Growth and Drive the Market
- North America is expected to hold a prominent share in the out of band Authentication market owing to the increase in the number of Internet of Things (IoT) and connected devices and vulnerabilities associated with them are some of the factors driving the adoption of OOBA solutions and services.
- The government of Canada and the United States relies heavily on the use of information systems to support its basic and essential business functions and to deliver programs and services their citizens. For instance, the Government of Canada uses an out-of-band token, which is a combination of a physical device (e.g., mobile phone, landline telephone) and a secret that is transmitted to the device by a verifier each time authentication is required.
- Also, the COVID-19 pandemic has resulted in an increase in mobile payments in the United States. For instance, San Francisco-based AppsFlyer, a software-as-a-service (SaaS) mobile analytics and attribution platform, reports a 22% increase in in-app purchases during the month of March. This, as United States residents, has begun to rely even more on their mobile devices while being stuck at home due to the global Coronavirus (COVID-19) pandemic.
- For instance, digital banking apps managed to procure a 17% increase in revenues by 17%. Virtual banking apps in the United States experienced a 60% increase in downloads and installations as customers weren't able to visit brick-and-mortar retail locations due to lockdowns. It is expected to temporarily drive the market in North America.
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