Online payment fraud is any illegal transaction, which happens on the internet. The cyber-criminals have coined a number of methods to steal and misuse important data. Online phishing and spoofing are the most common types of the payment frauds.
Online payment systems are vulnerable to the increasing number of fraudulent activities on account of greater breadth and depth of data collected from all the E-commerce, E-banking, and E-tailing websites, around the globe. These frauds are growing on the back of increasing number of e-commerce transactions and users, coupled with growing use of online banking. Online payment fraud detection systems require mandatory protocol to detect & prevent fraud, and mitigate risk pertaining to unusual patterns in payment transactions. Additionally, data breaches and fraudulent activities are increasing revenue losses from millions of transactions each day over multiple channels, on the back of increase in internet penetration and digitalization around the globe. Therefore, the online payment fraud detection market is anticipated to grow significantly in upcoming years. Moreover, the rise in the adoption of advanced technology and artificial intelligence to manage payment gateways is anticipated to propel the growth of online payment fraud detection market.
The global online payment fraud detection market is anticipated to witness significant opportunities and is estimated to grow at a CAGR of around 15% over the forecast period i.e. 2019-2027.
With growing technological advancements, there is a vast impact of digitalization leading to growing adoption of the internet connected devices, along with emerging e-commerce, e-tailing and e-banking activities across the globe. These advancements are further leading to growing number of challenges faced by these industries, such as revenue losses through online payment frauds. These challenges are anticipated to drive the demand for online payment fraud detection solutions, thereby driving the growth of the market.
The online payment fraud detection market is segmented by solution into fraud analytics, authentication and reporting & visualization, out of which, authentication solution segment is estimated to hold highest share in the market on account of growing adoption of advanced security systems by the organizations. On the basis of industry, the BFSI sector is estimated to account for major market share over the forecast period and is expected to grow at a substantial rate on the back of primary focus and increasing initiatives to prevent frauds, in the monetary transactions. Moreover, the healthcare segment is anticipated to witness highest growth rate over the forecast period on account of increasing health concerns and medical services pertaining to the maintenance of online health records.
With the emergence of E-commerce, E-banking and advanced digital payment methods, new fraudulent practices are anticipated to grow. Additionally, challenges arising from increasing use of internet connected devices and promotion of digitalization by the government, around the globe such as growing number and types of online fraudulent activities are expected to benefit the expansion of the online payment fraud detection market over the forecast period.DOWNLOAD SAMPLE REPORT HERE
Rising technological advancements along with integration of artificial intelligence that ensures operational efficiency, to monitor cross channel transactions on real time basis in the businesses are expected to be key drivers for the market growth. These factors, along with implementation of stringent laws in order to minimize the rapid rise in the revenue losses and the cost of frauds are anticipated to promote the growth of online payment fraud detection market.
High installation and operational costs are anticipated to hamper the adoption of payment fraud detection system among different organizations.
Our-in depth analysis of the online payment fraud detection market includes the following segments:
On the basis of regional analysis, the global online payment fraud detection market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region, out of which, the market in North America accounts for the largest market share, on account of early adoption of online-based services among people. According to our research, the market in North America is expected to lead the market over the forecast period on the back of presence of key vendors, offering wide range of solutions for fraud detection in the region. Further the market in Europe is anticipated to grow at an accelerating rate owing to increasing presence of cashless economies in the region. Furthermore, the market in Asia Pacific is expected to project highest growth rate over the forecast period. The factors contributing towards the market expansion in the region include increasing inclination towards digitalization and increase in spending and implementation of fraud detection and prevention solutions. Moreover, rising economies of Asia Pacific, such as India and China are the contributing towards the market growth.
The global online payment fraud detection market is further classified on the basis of region as follows:
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