India Payment Security Market is Expected to Register a CAGR of 15.77% Through 2030
Growing Digital Payment Adoption and Rising Cybersecurity
Threats are likely to propel the market during the forecast period.
According to
TechSci Research report, “India Payment Security Market – By Region,
Competition, Forecast and Opportunities, 2020-2030F”, India Payment Security Market was valued at
USD 3.96 Billion in 2024 and is expected to reach USD 9.62 Billion by 2030 with
a CAGR of 15.77% during the forecast period.
One
of the primary drivers of the India Payment Security market is the rapid growth
of digital payments. India has seen a significant shift from traditional cash
transactions to digital payment methods over the past few years. Government
initiatives such as the Digital India campaign and the push towards a less-cash
economy have significantly contributed to this transformation. In 2023, India
witnessed a rise in UPI (Unified Payments Interface) transactions, along with
increased usage of mobile wallets, online banking, and point-of-sale (POS)
terminals.
As
digital payment usage continues to rise, so does the need for secure payment
systems to protect against fraud, data breaches, and unauthorized access. This
surge in digital transactions has led to greater attention on payment security
technologies and practices, as businesses and consumers seek safe and
trustworthy methods for financial exchanges. With more people conducting their
financial activities online, the demand for advanced security features, such as
multi-factor authentication (MFA), end-to-end encryption, and fraud detection
systems, has grown exponentially.
The
increase in online shopping, remote banking, and the use of mobile apps for
payments in sectors like e-commerce, travel, and entertainment, further
highlights the importance of robust payment security solutions. Customers
expect secure and seamless transaction experiences, driving businesses to
invest in the latest payment security technologies. As a result, payment
service providers, financial institutions, and technology companies are heavily
investing in strengthening their payment security infrastructure, thus
propelling the growth of the payment security market in India.
The
Indian government’s focus on enhancing cybersecurity regulations, such as the
Personal Data Protection Bill (PDPB), which aims to safeguard consumers’
personal data, is another key factor driving the market. These regulatory
measures encourage businesses to adopt secure payment solutions and comply with
global security standards, fostering consumer confidence in digital payments.
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Based
on End User, The BFSI held the largest market share in 2024. The BFSI (Banking, Financial Services, and
Insurance) sector dominates the India Payment Security market due to its
critical role in managing and facilitating financial transactions, which are
highly sensitive and prone to fraud. As digital payment adoption increases
across India, financial institutions face heightened pressure to ensure the
security of transactions to protect customer data and maintain trust.
The
BFSI sector, which includes banks, fintech companies, insurance providers, and
payment gateways, handles the bulk of the country’s digital payment
transactions. With the rise of mobile banking, UPI (Unified Payments
Interface), and digital wallets, the need for advanced security solutions such
as encryption, tokenization, and biometric authentication has escalated. The
sector deals with enormous volumes of transactions daily, making it a prime
target for cybercriminals. Therefore, ensuring the security of these
transactions is paramount for these institutions to maintain their reputation
and consumer trust. Moreover, the regulatory environment in India, led by
entities like the Reserve Bank of India (RBI), places strict guidelines on data
protection and cybersecurity. Financial institutions are required to comply
with standards such as PCI DSS (Payment Card Industry Data Security Standard)
and follow other security measures to prevent data breaches, fraud, and
unauthorized access to sensitive financial data. This regulatory landscape has
propelled BFSI organizations to invest heavily in payment security
technologies.
The
growing adoption of digital banking, online transactions, and e-commerce in
India further emphasizes the need for robust payment security systems. The BFSI
sector is directly involved in processing these payments and ensuring that
digital transactions are safe, making it the largest driver of demand for
payment security solutions in India. The increasing volume of transactions and
heightened security risks in this sector make BFSI the dominant player in the
India Payment Security market.
Based
on region, North India is emerging as the fastest-growing region in the India
Payment Security market due to a combination of factors, including rapid
digital adoption, increasing e-commerce activities, and significant government
initiatives aimed at boosting financial inclusion and security.
One
of the primary drivers of this growth is the region’s increasing adoption of
digital payments. With the rise of mobile wallets, UPI (Unified Payments
Interface), and e-commerce platforms, consumers and businesses in North India
are increasingly relying on digital transactions for daily activities. The
convenience of digital payments has fueled this adoption, especially among the
younger, tech-savvy population in urban areas such as Delhi, Chandigarh, and
Jaipur. This surge in digital payment usage has created a pressing need for
robust payment security solutions to prevent fraud and ensure the integrity of
online transactions.
North
India has become a hub for e-commerce growth. The region’s growing middle class
and increasing internet penetration have led to a surge in online shopping,
leading to a higher volume of digital payments. As e-commerce transactions
increase, so does the risk of cybersecurity threats, pushing businesses to
adopt secure payment technologies such as encryption, tokenization, and
AI-driven fraud detection systems. The government’s push for a “Digital India”
has also played a key role. Several initiatives, such as the expansion of the
National Payments Corporation of India (NPCI) services and promoting cashless
transactions, have been particularly focused in North India. The region has
seen extensive awareness campaigns about the benefits of digital payments and
their security, which has fostered greater adoption.
Major companies
operating in the India Payment Security Market are:
- Thales Group
- IBM Corporation
- Visa
- Mastercard International Incorporated
- American Express Company
- PayPal Holdings, Inc.
- Square
- Fortinet, Inc.
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“The India Payment Security market
presents significant growth opportunities due to the rapid adoption of digital
payments, increasing cybersecurity threats, and evolving regulatory frameworks.
With the expanding use of mobile wallets, UPI, and e-commerce platforms, the
demand for robust security solutions like biometric authentication,
tokenization, and AI-driven fraud detection is rising. The government's push
for a cashless economy, combined with stricter data privacy regulations,
further drives the need for secure payment systems. As businesses and consumers
prioritize security, there is a growing market for innovative solutions that
protect sensitive financial data and ensure the integrity of digital
transactions” said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based global management consulting firm.
“India Payment Security
Market, By Offering (Solutions, Services), By Payment
Mode (Banking Cards, Internet Banking, PoS, Digital Wallets, Others), By End
User (BFSI, Retail & E-commerce, Healthcare, Others) By Region, Competition,
Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of India Payment
Security Market and provides statistics & information on Market size,
structure and future Market growth. The report intends to provide cutting-edge Market
intelligence and help decision-makers make sound investment decisions., The
report also identifies and analyzes the emerging trends along with essential
drivers, challenges, and opportunities in the India Payment Security Market.
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