The “3D Secure 2.0 (3DS 2.0) Payer Authentication Market Report 2025” has been released by ResearchAndMarkets.com, highlighting the rapid growth of the 3DS 2.0 payer authentication market. The market”s value is expected to rise from $1.43 billion in 2024 to $1.65 billion in 2025, reflecting a compound annual growth rate (CAGR) of 15.9%. This growth is attributed to an increase in online payment fraud, heightened consumer adoption of digital payment methods, the expansion of cross-border transactions, regulatory compliance, and the burgeoning e-commerce sector.
Looking ahead, the market is forecasted to reach $2.94 billion by 2029, with a CAGR of 15.5%. This anticipated growth is likely to be driven by increasingly sophisticated payment fraud tactics, broader adoption of buy now pay later (BNPL) services, the rise of cryptocurrency and Web3 payment systems, and escalating online fraud and cybersecurity challenges.
Key trends expected to shape the market include the integration of digital identity verification, the adoption of cloud-based authentication solutions, the application of blockchain technology for transaction security, advancements in adaptive authentication, and the utilization of AI-driven behavioral biometrics.
The rise in online payment fraud is a major factor propelling the demand for 3D Secure 2.0 payer authentication solutions. Online payment fraud involves the unauthorized use of payment information to execute fraudulent online transactions, a problem exacerbated by the increase in digital transactions and the sharing of sensitive payment data on unsecured platforms. 3DS 2.0 provides a solution through real-time, risk-based identity verification during transactions, enhancing security while ensuring a smooth user experience and fostering consumer trust in digital payments.
For instance, UK Finance reported a 2% increase in unauthorized fraud losses in May 2025, amounting to approximately $915 million (£722 million), with 3.13 million confirmed fraud cases in 2024, marking a 14% rise compared to 2023. This data underscores the growing issue of online payment fraud and the increasing need for robust payer authentication measures.
Companies operating in the 3D Secure 2.0 payer authentication space are increasingly innovating to bolster transaction security, enhance user experience, and minimize fraud risks. Authentication services are systems that verify the identity of users, devices, or systems prior to granting access to digital resources or transactions.
In February 2023, PayU Payments Private Limited launched a 3DS 2 SDK authentication service aimed at Indian merchants. This EMVCo-certified service offers an advanced solution for streamlining online card payments, allowing businesses to provide seamless in-app or web checkouts. The service employs biometrics and frictionless flows to expedite and secure the authentication process, thereby reducing payment times and cart abandonment rates.
In December 2023, Entersekt Pty Ltd., a South African fintech company, acquired the 3D Secure payment authentication division of Modirum Limited, a Finnish company specializing in 3DS 2 technology. This acquisition aims to enhance Entersekt”s global presence in digital payment security by expanding its capabilities in secure authentication solutions for banks, card issuers, and merchants.
Prominent players in the 3DS 2.0 payer authentication market include American Express Company, Visa Inc., Mastercard Incorporated, Fiserv Inc., Adyen N.V., Naspers Payments Private Limited, Worldline S.A., Elavon Inc., Nets A/S, ACI Worldwide Inc., Marqeta Inc., CardConnect LLC, GMO Payment Gateway Inc., UnionPay International Co. Ltd., BlueSnap Inc., Entersekt (Pty) Ltd., Modirum MDPay Ltd., Braintree Payment Solutions LLC, GPayments Pty Ltd., and Cardstream Limited.
The report encompasses various aspects including market characteristics, growth trends, segmentation, regional analyses, competitive landscapes, and market shares, offering a comprehensive view of the market”s historical growth and future forecasts.
