Online Payment Fraud Detection Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Solution (Fraud Analytics, Authentication, Reporting & Visualization), By Mode (E-payment, Mobile payment, Card payment), By Region, and By Competition, 2020-2030F

Market Overview

The Global Online Payment Fraud Detection Market will grow from USD 9.02 Billion in 2024 to USD 21.75 Billion by 2030 at a 15.80% CAGR. The Global Online Payment Fraud Detection Market encompasses technologies and services designed to identify, prevent, and mitigate fraudulent activities within electronic financial transactions. Primary growth drivers supporting this market include the continuous global expansion of e-commerce adoption and digital payment methods, which inherently increases the volume of online transactions susceptible to fraud. Furthermore, the rising sophistication and frequency of cybercriminal attacks targeting financial systems, alongside evolving regulatory mandates aimed at enhancing transaction security, contribute significantly to the sustained market demand for robust detection solutions.

According to the Association for Financial Professionals, in 2024, 79% of organizations reported experiencing attempted or actual payments fraud activity. A significant challenge that could impede market expansion is the persistent need for continuous innovation in detection methodologies and models to effectively counter the rapid evolution of fraud techniques and the increasing deployment of advanced tools by fraudsters.

Key Market Drivers

The online payment fraud detection market is primarily driven by the continuously increasing volume of digital transactions and the expansion of e-commerce. As global commerce increasingly shifts to online platforms, the sheer number of financial interactions creates a larger attack surface for fraudsters, necessitating advanced protective measures. According to Forbes Advisor, in March 2024, e-commerce sales were expected to grow 8.8% in 2024, demonstrating the sustained digital migration of economic activity. This extensive growth in digital transactions directly correlates with a heightened demand for robust fraud detection solutions to monitor and secure these burgeoning payment flows.

Concurrently, the rising sophistication of cyber threats and fraudulent activities represents another critical market driver. Fraudsters are continuously evolving their tactics, employing advanced techniques such as deepfakes and generative artificial intelligence to bypass conventional security protocols and execute complex scams. According to a survey by the Center for Payments, Nacha, and ICBA in September 2024, sixty-two percent of institutions reported a rise in sophisticated fraud tactics, underscoring the urgent need for more intelligent detection capabilities to counter these evolving threats. This necessitates ongoing innovation in fraud detection systems to maintain effective defense against increasingly subtle and organized criminal enterprises. Overall, efforts to combat this expanding threat landscape are significant; for example, according to the U.S. Department of the Treasury, in October 2024, their enhanced fraud detection processes, including machine learning AI, prevented and recovered over $4 billion in fraud and improper payments during fiscal year 2024.

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Key Market Challenges

The persistent need for continuous innovation in detection methodologies directly impedes the growth of the Global Online Payment Fraud Detection Market. As fraudsters rapidly evolve their techniques and deploy advanced tools, payment fraud detection solution providers face considerable pressure to constantly develop and update their systems. This continuous development cycle demands substantial investment in research and development, increasing operational costs and diverting resources. The inherent delay in delivering new countermeasures against emerging threats can render existing solutions less effective, potentially eroding confidence in the market's ability to provide comprehensive and lasting protection.

This dynamic challenge means solutions can quickly become outdated. According to UK Finance, in the first half of 2024, unauthorized fraud losses increased by 5% compared to the previous year, with over 1.5 million cases recorded. This demonstrates the financial impact and the scale of adaptive criminal activity. Consequently, organizations may hesitate to commit to long-term investments in solutions that risk being outmaneuvered by new fraud patterns, thereby restricting the market's potential for expansion and sustained revenue generation for providers.

Key Market Trends

The market is experiencing an accelerated integration of AI and machine learning into fraud detection, fundamentally transforming capabilities by enabling systems to analyze vast transactional data and identify complex, evolving fraud patterns with superior accuracy. This technological shift facilitates proactive defense mechanisms over traditional reactive approaches. According to the Association of Certified Fraud Examiners (ACFE), in February 2024, 83% of organizations were expected to implement generative AI in their anti-fraud programs by 2026, demonstrating significant industry commitment. This is underscored by DataVisor, a fraud and risk detection software developer, launching its AI Co-Pilot in October 2023, a generative AI solution automating detection and reducing false positives.

The growing adoption of advanced digital identity verification and authentication represents a critical market trend, shifting towards robust, multi-layered security frameworks. These solutions, incorporating biometrics and behavioral analytics, are essential for establishing genuine user identity during onboarding and transactions, directly addressing threats like synthetic identity fraud. This real-time verification enhances trust and streamlines processes. According to the Association of Certified Fraud Examiners (ACFE), in February 2024, 40% of organizations utilized physical biometrics in anti-fraud programs, with an additional 17% anticipating adoption within two years. Trulioo's unveiling of next-generation identity capabilities in November 2025, integrating AI-powered biometric authentication, further illustrates this focus on strengthening digital trust.

Segmental Insights

The mobile payment segment is experiencing the most rapid growth within the global online payment fraud detection market. This acceleration is primarily driven by the extensive adoption of mobile devices for transactions and digital wallets, significantly increasing the attack surface for fraudsters. As consumers increasingly rely on mobile channels for financial activities, sophisticated fraudulent activities such as account takeovers, phishing, and exploiting application vulnerabilities have become more prevalent. Consequently, businesses and financial institutions are compelled to invest robustly in advanced fraud detection solutions to protect sensitive consumer data and maintain trust. Regulatory bodies, such as the Consumer Financial Protection Bureau, are also enhancing oversight on digital payment apps, further necessitating comprehensive fraud prevention measures.

Regional Insights

North America leads the global online payment fraud detection market, primarily driven by its advanced technological infrastructure and widespread adoption of digital payment methods across extensive e-commerce activities. The region's robust financial ecosystem, characterized by numerous financial institutions and major solution providers, fosters significant investment in advanced fraud prevention technologies. This environment is further shaped by the increasing sophistication of cyber threats, necessitating continuous innovation in fraud detection. Moreover, stringent regulatory frameworks enforced by bodies such as the Consumer Financial Protection Bureau and the Federal Trade Commission compel organizations to implement comprehensive fraud detection systems to ensure compliance and safeguard consumer transactions.

Recent Developments

• In November 2025, EverC, now part of G2 Risk Solutions, introduced Scam Network Intelligence, an AI-powered solution engineered to uncover scam networks and assist marketplaces in detecting and disrupting fraud. This innovative solution aimed to provide marketplaces with visibility into the intricate networks behind online scams. It mapped how scammers engaged with victims across various digital channels, including ad networks, fake support portals, messaging applications, and social media platforms. By identifying scam clusters early, the solution sought to reduce blind spots within the payments ecosystem and prevent harm to consumers.

• In October 2025, Phi Commerce, a digital payments fintech, launched Phi-ter, an AI-powered omnichannel real-time fraud management system. This platform was designed to detect and flag suspicious transactions within milliseconds, operating across both issuing and acquiring channels for online, offline, and doorstep payments. Phi-ter integrated rule-based profiling, behavioral scoring, and self-learning machine learning to minimize false positives. The company made the platform available for both domestic and international markets, addressing the challenge of cyberfraud in the rapidly scaling digital economy. The solution aimed to empower banks, processors, and payment aggregators with unified protection.

• In September 2025, Swift led groundbreaking experiments with 13 global financial institutions, demonstrating the significant impact that AI and secure cross-border data collaboration could have on reducing fraud in international payments. These trials involved privacy-enhancing technologies (PETs) to facilitate the secure sharing of fraud insights among institutions. In one scenario, PETs enabled participants to verify intelligence on suspicious accounts in real-time, which could expedite the identification of complex international financial crime networks. An AI model trained on synthetic data from ten million artificial transactions proved twice as effective in identifying known frauds compared to models trained on single datasets.

• In June 2025, AdvanThink, a specialist in real-time payment fraud detection, and Quandela, a quantum computing leader, formed a strategic partnership. The collaboration focused on exploring the potential of quantum computing to enhance fraud detection capabilities. Their goal was to develop high-performance fraud detection models that leveraged the combined strengths of AI and quantum computing. The initial phase of this partnership concentrated on creating a proof of concept, demonstrating the value of integrating quantum machine learning algorithms into AdvanThink's existing industrial pipelines to achieve faster and more accurate fraud identification than current solutions.

Key Market Players

• Kount, Inc.
• Pindrop Security
• Whitepages Inc.
• Visa Inc.
• ClearSale LLC
• Imperva, Inc.
• Accertify Inc.
• PayPal Holdings, Inc.
• Sift Science, Inc.
• F5, Inc.

Report Scope:

In this report, the Global Online Payment Fraud Detection Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Online Payment Fraud Detection Market, By Solution:

o   Fraud Analytics

o   Authentication

o   Reporting & Visualization

• Online Payment Fraud Detection Market, By Mode:

o   E-payment

o   Mobile payment

o   Card payment

• Online Payment Fraud Detection Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Online Payment Fraud Detection Market.

Available Customizations:

Global Online Payment Fraud Detection Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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