Mobile Payment Security Software Market Size - By Type (Tokenization, Biometrics, Encryption), Deployment Model (On-premises, Cloud), End-use Industry, Application, Growth Prospects, Regional Outlook & Global Forecast, 2023 - 2032

Mobile Payment Security Software Market Size

Mobile Payment Security Software Market size was valued at USD 12 billion in 2022 and is estimated to register a CAGR of over 11% between 2023 and 2032, owing to the escalating need to safeguard sensitive customer data. With the rise in mobile transactions, both consumers and businesses require robust security measures to protect financial information. These concerns can be addressed with the help of mobile payment security software, which employs encryption, biometric authentication, and real-time fraud detection measures. As data breaches become more sophisticated, the market for advanced security solutions will expand, thereby ensuring the integrity & confidentiality of customer data in mobile payments.
 

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The increasing popularity of mobile wallets is fueling the mobile payment security software market growth. As more consumers embrace mobile payment platforms and digital wallets, the demand for secure transactions will escalate. Mobile payment security software, which incorporates encryption, tokenization, and biometric authentication, is crucial to instill trust among users. With the convenience of mobile wallets, users are seeking robust security features, driving market size. This trend emphasizes the need for advanced security solutions, which is propelling innovations in mobile payment security software.
 

Small & Medium-sized Businesses (SMBs) might hesitate to adopt advanced mobile payment security software due to financial constraints. The implementation of robust security measures often requires significant investments including the costs associated with software licenses, hardware upgrades, and staff training. Smaller enterprises with limited budgets may find it challenging to allocate funds for these security solutions. As a result, they might rely on less secure alternatives, putting their businesses and customers at risks of cyber threats and frauds.
 

COVID-19 Impact

The COVID-19 pandemic significantly accelerated the adoption of mobile payment methods, leading to a surge in demand for mobile payment security software. Businesses rapidly embraced mobile payment solutions as consumers started avoiding physical currencies and preferring contactless transactions to reduce infection risks. This highlighted the importance of secure transactions, thereby boosting investments in advanced security software. The pandemic also intensified online activities, making businesses more vulnerable to cyber threats. Consequently, there was a heightened focus on implementing robust mobile payment security measures to protect sensitive customer data and ensure safe transactions.
 

Mobile Payment Security Software Market Trends

The rising adoption of tokenization in mobile payments is significantly fueling the mobile payment security software industry growth. Tokenization replaces sensitive payment data with unique tokens, thereby enhancing transaction security. For instance, in January 2023, Bluefin, a prominent player in integrated payments and payment security, entered into a collaboration with Visa for network tokenization.
 

This partnership involved the integration of Bluefin with Visa to deliver network tokens across various card brands. As per the collaboration, Bluefin will offer this network tokenization feature through ShieldConex, a vault-less tokenization service that ensures data security by safeguarding payment information. The rising demand for advanced security solutions will propel innovations & investments in mobile payment security software, thereby creating lucrative market opportunities.
 

Mobile Payment Security Software Market Analysis:

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Based on the deployment model, the cloud segment held over 70% of the mobile payment security software market share in 2022, propelled by its scalability, which is allowing businesses to expand services without extensive hardware investments. Cloud solutions also offer cost-effectiveness through subscription models, thereby accommodating both startups and established enterprises. Their flexibility enables on-the-go mobile payment operations, while rapid deployment ensures quick implementations.
 

Automatic updates enhance security, and integration capabilities facilitate seamless connections with various applications. Furthermore, robust security measures, compliance adherence, and innovative collaborations make cloud deployment a preferred choice, fostering the market demand.
 

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Based on end-use industry, the BFSI segment accounted for 27% of the mobile payment security software market share in 2022, due to the stringent action plans by banks to fortify cybersecurity. The rise in digital threats is compelling financial institutions to intensify their efforts in securing transactions. This drive involves the implementation of advanced security solutions including mobile payment security software to protect sensitive customer data.
 

For instance, in June 2023, The Reserve Bank of India has devised a comprehensive 10-point action plan to bolster cybersecurity in financial transactions. This strategy involves discussions with tech giants, such as Google and Apple, to enhance the security of mobile devices. The plan also emphasizes the incorporation of Artificial Intelligence (AI) and Machine Learning (ML) technologies into cybersecurity frameworks to fortify the sector against the emerging digital threats.
 

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North America mobile payment security software market recorded more than 34% of the revenue share in 2022, attributed to the collaborative partnerships geared toward enhancing payment security. Companies are joining forces to integrate advanced security technologies, such as encryption and tokenization, for the fortification of payment systems against cyber threats.
 

For instance, in October 2023, Bluefin, a player in the Payment Card Industry (PCI) that validated encryption and the tokenization technologies safeguarding payments and sensitive data, entered a collaboration with Invenco by GVR, a global leader in convenience retail solutions, to introduce PCI-validated P2PE solutions for the retail petroleum forecourt sector in North America, enhancing payment security in this industry. These strategic alliances ensure the robust protection of sensitive data, which helps in fostering trust among businesses and consumers.
 

Mobile Payment Security Software Market Share

The major companies operating in the mobile payment security software industry are:

• Braintree Payment Solutions LLC (Paypal Holding Inc.)
• Chase Paymentech Solutions
• FICO Enterprise
• Fidelity Payment Services.
• Fingerprints
• Fiserv Inc.
• Fujitsu
• Ingenico Group
• NCR Corporation
• OneSpan
• UL Solutions

Fiserv Inc. is dominating the mobile payment security software industry with prominent market share in 2022. The market is intense, with the key players focused on developing features that differentiate their products, such as advanced authentication methods. Also, major companies are collaborating with mobile payment service providers, financial institutions, and payment processors to integrate security solutions into their platforms.
 

Mobile Payment Security Software Industry News

• In April 2023, BR-DGE a payment orchestration platform launched the BR-DGE Vault, an advanced network tokenization product that can provide top-tier transaction performance & security to merchants and payment partners. Amid rapid innovations in payment technology, BR-DGE has offered a groundbreaking solution for secure mobile transactions.
   

The mobile payment security software market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD billion) from 2018 to 2032, for the following segments:

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Market, By Type

• Tokenization
• Contactless payments
• Remote payments 
• Biometrics
• Fingerprints
• Facial recognition
• Iris scanning
• Voice biometrics
• Encryption

Market, By Deployment Model

• On-premises
• Cloud

Market, By Application

• Mobile banking
• Mobile wallets
• Mobile payment apps
• Peer-to-peer payments
• Others

Market, By End-Use Industry

• BFSI
• Retail
• Healthcare
• Government
• IT & telecom
• Entertainment & media
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa