The growth of the market can be attributed to the rise in fraudulent activities in recent years. According to a survey by FIS, in April 2021, there has been a considerable increase in financial fraud throughout the pandemic, with customers increasingly embracing online services when conducting purchases. According to the FIS report, an increasing number of consumers are falling victim to cyber fraudsters, with 34% of surveyed participants reporting that they had experienced financial fraud in the past year.

AI-powered fraud detection and prevention systems are being developed to identify and prevent payment-related fraudulent activities in real-time. These systems can analyse large amounts of data and identify suspicious behaviour patterns, providing a proactive approach to security. Additionally, AI powered fraud detection and prevention systems can learn from previous fraud attempts and continuously adapt their models to stay ahead of emerging fraud trends. By doing so, they can provide a proactive approach to security and help prevent fraudulent activities before they occur.

Payment security providers are constantly evolving and adapting to new technologies and threats to ensure secure and seamless transactions. For instance, 3-D Secure is a security protocol used by credit card companies to authenticate online transactions. This protocol requires the cardholder to enter a unique password or biometric information to verify their identity, providing an additional layer of security for online transactions.

The Covid-19 pandemic had a positive impact on the market. The pandemic increased awareness among consumers regarding the trends and the need for being cautious about sharing personal and financial information online. As a result, consumers have become more vigilant about protecting their payment information and have increasingly demanded more robust security measures from merchants and payment providers.

In terms of actual market segmentation, it is the fraud detection & prevention segment that currently dominates the market according to the analysts. With the growth of digital payments and e-commerce, there has been a significant increase in the number of fraudulent transactions. As a result, there is a growing need for fraud detection and prevention tools to protect consumers and businesses from financial losses.

The POS based/mobile based segment dominated the market in 2022. With the growing use of smartphones and tablets, consumers increasingly purchase through mobile devices. This has led to a surge in demand for mobile-based payment solutions, which has, in turn, driven the growth of the POS based/mobile based segment.  

Additionally, the retail & e-commerce segment dominated the market in 2022. Retail and e-commerce businesses involve a large number of transactions every day. With the increase in online shopping, the number of transactions has increased, making it more vulnerable to cyberattacks and fraud, which makes the adoption of payment security solutions essential in retail & e-commerce businesses.