Online Payment Fraud Market, By Components (Solutions (Fraud Analytics and Authentication), Services (Professional Services and Managed Services), By Deployment (On-premise and Cloud), By Vertical (BFSI, IT & Telecom, Retail & Consumer Packaged Goods, Government, Real Estate & Construction, Energy & Utilities and Others), and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) – Market Trends, Analysis and Forecast till 2034

Online payment fraud Market Size was valued at USD 28.5 Billion in 2024 and is projected to grow at a CAGR of 17.0%to reach USD 119.5 Billion by 2034.

Online payment fraud is an illegal operation, which occurs via the internet. The cyber-criminals have created several methods to misuse and steal important information. Online spoofing and phishing are some of the common payment fraud types. These frauds are susceptible to the growing number of deceitful activities due to greater depth and breadth of data gathered from all e-banking, e-tailing, and e-commerce websites, around the world. These frauds are increasing on the back of the growing amount of e-commerce users and transactions, coupled with increasing online banking use. The detection systems for online banking require a compulsory protocol to prevent and detect fraud, as well as mitigate threats concerning unusual payment transaction patterns.

Online payment fraud Market Drivers:   

Growth of e-commerce

• With more consumers making purchases online, fraudsters have greater possibilities to steal credit card information and carry out other crimes.
• Switch to mobile payments: Although they are growing in popularity, mobile payments are susceptible to fraud more so than traditional ones.
• Data breaches: Credit card and Social Security numbers, among other personally identifiable information, may be made public by data breaches.

Technological developments

• Fraudsters are adept at utilizing newly developed technologies and are always coming up with new ways to steal money.
• Complexity of the online payment ecosystem: A wide range of parties, including banks, payment processors, and merchants, are involved in the online payment ecosystem. Because of its intricacy, it may be challenging to identify fraud and bring offenders to justice.

Restrains in the online payment fraud Market:

Financial institutions and payment processors' security protocols

• These organizations are always creating and implementing new technologies, such data analysis and machine learning, for fraud detection and prevention. This increases the difficulty of financial information theft and unlawful transaction by criminals.

Consumer education and awareness:

• People are learning more about how to protect themselves and the dangers of online payment fraud. This entails using strong passwords, exercising caution when disclosing information online, and keeping an eye out for unusual activity.
• Law enforcement collaboration: To find and prosecute individuals who commit online payment fraud, law enforcement organizations from all around the world are collaborating. It is harder for scammers to operate with impunity as a result of this worldwide cooperation.
• To aid in the prevention of online payment fraud, governments all over the world have put legislation into place. Financial institutions and payment processors are required by these regulations to take precautions to safeguard the financial information of their customers.

Key Opportunities in Online payment fraud Market:

Growth in e-commerce:

• Due to the e-commerce market's rapid expansion, there is a rise in online payment fraud. Businesses who can provide products that efficiently identify and stop fraud in this setting will be highly valued.

Emerging technologies

• More advanced fraud detection systems are being created using cutting-edge technology like artificial intelligence (AI) and machine learning (ML). Businesses who can take advantage of these technologies will be in a strong position to handle the difficulties posed by the changing fraud scene.

Pay attention to mobile payments

• As these methods gain traction, scammers will have additional avenues to operate. There will be a great need for businesses that can create solutions that secure mobile payments.

Legislation

• To prevent online payment fraud, governments all over the world are putting new legislation into place. Businesses that are able to provide solutions that adhere to these rules will have an advantage over competitors in the market.

An increase in international trade

• Fraud detection is facing additional hurdles as cross-border e-commerce grows. Businesses who can provide products that efficiently identify and stop fraud in this setting will be highly valued.

Online Payment Fraud Market  is segmented based on based on Component, Deployment Mode, Vertical, End-User and Region.

Components Insight

The software and instruments used to identify and stop fraud are referred to as solutions. These are the two primary types of solutions:

• Fraud analytics: These tools look for patterns and trends in data that could point to fraudulent conduct. They can also be applied to rate transactions according to the degree of risk involved.
• Authentication: By using these technologies, you may confirm the payer's identity. Biometrics and multi-factor authentication (MFA) are two ways to accomplish this.
• Services are the expert assistance that companies can obtain to manage and put their fraud prevention strategies into action. These are the two primary service categories:
• Professional Services: These services include consultants who assist companies in determining their fraud risk, choosing the best fraud prevention measures, and incorporating those measures into their current operations.
• Managed Services: In this kind of service, a third-party supplier oversees the daily functioning of a company's fraud protection measures. This may entail keeping an eye out for fraud, looking into questionable activities, and adopting preventative measures.

Deployment Mode Insights

• On-Premises - The Company’s own servers are used to install and operate fraud detection and prevention software. Although this offers companies more control over their data, managing it can also be more costly and difficult.
• Cloud-Based - Software for detecting and preventing fraud is sent from a cloud provider's servers via the internet. For organizations, this is usually a more convenient and cost-effective solution.

By Vertical Insights

• BFSI: Because financial transactions are so valuable, one of the most targeted verticals is banking, financial services, and insurance, or BFSI. Money laundering, phishing scams, and account takeover are examples of common fraud types.
• Retail & Consumer Packaged Goods: This vertical is very concerned about fraudulent internet purchases. The use of fraudulent accounts and credit card theft are common forms of fraud.
• Government: Through grant applications or benefit programs, government agencies may be the subject of fraud.
• Others: IT & Telecom, Real Estate & Construction, Energy & Utilities

Online payment fraud Market Regional Insights:

On region the ESG Reporting Software Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

• North America: Because of its abundance of well-known financial institutions and emphasis on cyber security, this region is anticipated to have the most market share.
• Europe: The market for online payment fraud is being driven by strict data privacy laws and an increase in e-commerce use.
• Asia Pacific: Due to variables including quickening economic development, rising internet penetration, and an increase in online shoppers, this region is growing at the highest rate.
• Latin America: Growing disposable incomes and expanding investments in digital technology are likely to drive the region's market growth.
• Middle East & Africa: Growing investments in the banking industry and government programs to upgrade digital infrastructure are anticipated to propel growth in this region.

Online payment fraud Market Report Scope:

Attribute	Details
Market Size 2024	USD 28.5 Billion
Projected Market Size 2034	US$ 119.5 Billion
CAGR Growth Rate	17.0%
Base year for estimation	2023
Forecast period	2024-2034
Market representation	Revenue in USD Billion & CAGR from 2024 to 2034
Market Segmentation	By Components - Solutions (Fraud Analytics and Authentication), Services (Professional Services and Managed Services. By Deployments – On-premise and Cloud. By Vertical – BFSI, IT & Telecom, Retail & Consumer Packaged Goods, Government, Real Estate & Construction, Energy & Utilities and Others.
Regional scope	North America - U.S., Canada Europe - UK, Germany, Spain, France, Italy, Russia, Rest of Europe Asia Pacific - Japan, India, China, South Korea, Australia, Rest of Asia-Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa - South Africa, Saudi Arabia, UAE, Rest of Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study, has segmented the ESG Reporting Software Market report based on By Components, by Deployment, By Vertical and Region:

Online payment fraud Market, By Components:

• Solutions (Fraud Analytics and Authentication)
• Services (Professional Services and Managed Services)

Online payment fraud Market, By Deployment Mode:

• On-Premises
• Cloud-Based

Online payment fraud Market, By Application:

• BFSI
• Retail & Consumer Packaged Goods
• Government
• Others.

Online payment fraud Market, By Region:

• North America

• U.S.
• Canada

• Europe

• Germany
• UK
• France
• Russia
• Italy
• Rest of Europe

• Asia Pacific

• China
• India
• Japan
• South Korea
• Rest of Asia Pacific

• Latin America

• Brazil
• Mexico
• Rest of Latin America

• Middle East & Africa

• GCC
• Israel
• South Africa
• Rest of Middle East & Africa

The key players operating the target market includes, IBM, FICO, SAS Institute, BAE Systems, DXC Technology, SAP, ACI Worldwide, Fiserv, NICE Systems, Experian, LexisNexis Risk solutions, Iovation, Others.

• In November 2022, the acquisition of TECS Payment Systems by Bluefin Payment Systems LLC announced in November 2022. With this transaction, Bluefin and TECS will together support 34,000 linked merchants and about 300 international partners in 55 countries. The global reach of both organizations is expanded by the strategic cooperation. For Bluefin and its clients, omnichannel payments and smartPOS features will be integrated with the company's current payment and data security suite.
• In September 20, 2022 - Elavon Inc. has introduced talech Register, a next-generation, all-in-one platform for business analytics and payments, to small business owners in North America. Through register company aims, small business owners can better manage their operations by taking care of all the intricate banking, operational, and payment needs of their business.

• IBM
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• FICO
•  SAS Institute
•   BAE Systems
•  DXC Technology
•  SAP
•  ACI Worldwide
•  Fiserv
•  NICE Systems
•  Experian
•  LexisNexis Risk solutions
•  Iovation
• Others

 “*” marked represents similar segmentation in other categories in the respective section