The global payment monitoring market size was valued at USD 9.6 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 16.1% from 2020 to 2027. Increasing awareness among organizations to comply with the regulations and standards related to payment services is the primary factor contributing to market growth. Further, the growing trend of having proactive risk alerting systems by using advanced analytics is also propelling growth. Additionally, the necessity for organizations to strictly comply with Know Your Customer (KYC) regulations and eradicate money laundering and Counter-Terrorism Financing (CTF) activities is also expected to drive the market.
Organizations must abide by the increasing number of regulations to tackle fraudulent activities. Since the number of fraudsters and fraudulent activities is increasing exponentially, and frauds are becoming more prevalent, the need to comply with regulations has become important to ensure the protection of organizations and their customers. Payment monitoring helps organizations to check real-time customer transactions for analyzing potential risks. Furthermore, various organizations are also using payment monitoring solutions during the pre-production phase for identifying various potential bottlenecks and mitigating risks before it occurs.
Payment monitoring is the process of reviewing, administering, and analyzing the transaction processed on a business application. The major function of payment monitoring is to observe customer transactions, which involves assessing customers’ current as well as historical information to provide a full view of the customer activity. It is mainly done to evaluate the overall performance of the transaction processing system and is used by the organizations for effectively and efficiently managing different types of transactions of the customer. These solutions help them to identify high-risk activities, protect customer business, and maintain the banking relationship, which is subsequently driving market growth.
Payment monitoring solutions offer great benefits to organizations; however, they require qualified and educated professionals with relevant experience in analytical and logical thinking and financial domain expertise. Presently, there is a lack of skilled solution development professionals such as statisticians, ethical hackers, data analysts, and data scientists. However, there are a lot of education programs being launched across different countries to train professionals in machine learning and analytics. For instance, education programs are launched by Upgrad and Unacademy to provide training on data science courses in India. This will help people to learn about analytics and machine learning, which would help in developing payment monitoring solutions and contribute to the payment monitoring market growth.
Furthermore, the integration of advanced technologies such as machine learning, Artificial Intelligence (AI), and big data with payment monitoring solutions is expected to provide lucrative opportunities for market growth. By using these technologies across the full transaction monitoring process, alerts can be auto-triggered leveraging machine learning; they can be auto-enriched with transaction, account, and customer information from internal and external data sources. Further, the Suspicious Activity Reports (SARs) can be auto-generated using Natural Language Generation (NLG). Hence, the organizations leveraging these technologies can bring down dependencies on human operators, reduce the total time taken, and allow personnel to focus on more valuable and complex activities. Thus, the integration of these technologies with payment monitoring solutions is anticipated to propel market growth over the forecast period.
The KYC/Customer onboarding segment dominated the market in 2019. KYC solutions provide analytical tools and data channels that can deliver the necessary insight to customers to move ahead with further processes. Unlike a one-time onboarding check, advanced KYC solutions involve monitoring ongoing risk and analyzing behavior as it occurs. Implementing KYC solutions provides smart actionable insights to any organization that wants to be effective and efficient; since an effective KYC strategy helps in lowering compliance risks and costs, along with improving the customer experience and revenue generation.
The case management service segment is expected to exhibit significant growth during the forecast period. Case management solutions help organizations improve customer service, address compliance issues, increase business efficiency, and reduce costs and risks. It allows automation of business processes, captures related information and supporting documentation, and tracks detailed progress. This helps the management and staff become more productive as tasks can be completed faster. Case management solutions are also used to manage IT or help desk requests from staff such as HR workplace harassment reporting, employee business credit card requests, and litigation.
The BFSI segment dominated the market in 2019. The major factors driving the adoption of payment monitoring in this sector include the adoption of this software by various financial institutions for mitigating money laundering and terror financing activities. A payment monitoring solution helps minimize different types of risks related to interest rates, and foreign exchange and also helps monitor several suspicious transactions. Furthermore, the usage of other services by banks such as debit, credit, and centralized fund managing systems has led to the usage of advanced solutions and helped in the growth of the transaction monitoring market.
The retail segment is expected to witness the fastest growth over the forecast period. The rise in the trend of online shopping, which has led to the adoption of digital payment and increased online transactions has propelled the demand of the transaction monitoring market. The retail industry has increased its expenditure in Customer Relationship Management (CRM) to handle customers’ needs, thus helping enterprises to increase the productivity of their business processes. Further, IT has become an important part of the retail business and has simplified customer-centric processes in the retail industry. Additionally, companies in the retail industry are trying to improve their competitive edge, exceed customer expectations, and increase revenues by the adopting latest technologies such as payment monitoring solutions.
The training and consulting service segment is anticipated to witness rapid growth over the forecast period. Increasing digitalization is pushing the demand for education programs for making the existing workforce effectively adapt to the evolving technological landscape. The introduction of new technologies followed by changing needs of the customers is leading to change in business operations, thus, driving the need among organizations to opt for training and consulting services to seek their support in identifying and addressing the inadequacies.
The support and maintenance service segment is expected to exhibit the fastest growth during the forecast period. Technology is changing rapidly, resulting in constant upgrades in the system. Payment monitoring solutions should be updated with the changing technologies as organizations need vendor support in case of technical issues. Payment monitoring follows several factors that need to be considered, such as understanding the technicalities, seamlessly importing/exporting data, and regularly updating the solutions. Furthermore, the growing trend of organizations adopting cloud-based operation services has promoted the growth of this segment.
The on-premise segment dominated the market in 2019 as it has enhanced security features while operating in organization premises. An on-premise solution offers total control over the software as all sensitive data is stored internally and there is no risk of exposing it to a third party. Payment monitoring solutions that highly rely on cloud services are exposed to service impairment or control loss, service breakdown, data breach, or financial loss. The user experience might also be affected by insecure network transmissions at some locations and this restricts the reach of cloud-based services and thus, the majority of organizations still prefer deploying the on-premises solution.
However, cloud deployment is expected to expand at a higher CAGR, as it helps in avoiding the costs associated with the software, hardware, storage, and technical staff. The cloud-based platform provides a unified way in the form of Software-as-a-Service (SaaS)-based security services to secure business applications. The cloud-based payment monitoring solution is simple to maintain and upgrade; thus, it is driving the segment growth. The deployment of cloud-based solutions promotes the ease of service delivery owing to its virtual presence that makes organizations to gain access to data across connected devices at any time. These benefits are expected to drive the adoption of cloud payment monitoring solutions across verticals.
The Small and Medium enterprise (SME) segment is expected to grow at the highest CAGR over the forecast period. SMEs are mainly believed as a sector involving high risks as they are commonly used as a shell industry for different money laundering and financial crimes. Thus, advanced technologies such as big data analytics, artificial intelligence, and Machine Learning (ML) have been adopted by various SMEs for having adequacies and decreasing the fraudulent activities in their transaction monitoring system. Additionally, AI-based payment monitoring helps SMEs proactively monitor suspicious data and conform to regulations. All these factors are contributing to the growth of the market.
The large enterprise segment is expected to dominate the market over the forecast period. This can be attributed to the availability of high capital and affordability, allowing large organizations to adopt payment monitoring solutions. Large enterprises are more susceptible to information and financial losses. Hence, large enterprises are investing heavily in adopting various measures to safeguard their products, technologies, and capital.
The Anti-money Laundering (AML) segment has dominated the market in 2019 owing to the need for preventing money laundering activities across the world. The convergence of increased regulations and next-generation technologies that addresses AML across various organizations has propelled growth. Additionally, for organizations, it has become important to understand the significance of compliance and invest in AML technology to lessen the financial risk factors in business operations. Furthermore, Governments are making the implementation of AML solutions mandatory for organizations to avoid unlawful financing activities.
The fraud detection and prevention segment is expected to expand at the highest CAGR over the forecast period. The major factors that are expected to drive the market are increasing revenue losses for organizations owing to the increase in the use of electronic transactions and rising fraudulent attacks. Fraud detection and prevention helps in monitoring and analyzing data from several sources, detecting abnormalities, and suspicious and unusual behavior across all channels. It also detects frauds and enables robust information security to enhance compliance. Furthermore, the increasing adoption of technologies such as ML and AI for fraud detection could boost the demand for fraud detection and prevention solutions on a large scale.
North America dominated the market for payment monitoring in 2019. The presence of two major economies U.S. and Canada which are deemed as the most digitized economies worldwide has driven the early adoption of leading technologies and solutions for efficient business operations. The region has a strong presence of established vendors such as FIS, Fiserv, Oracle, SAS, and ACI Worldwide. The increasing adoption of online transactions in government sectors is also propelling regional growth. Furthermore, after the 2008 financial crisis, the region has become more aware in terms of financial crimes and reformed regulatory compliances which is further driving the growth.
The Asia Pacific is expected to maintain a rapid growth over the next eight years owing to the presence of emerging economies, such as India, China, and Singapore, which are the biggest hub for several banks that are deploying payment monitoring solutions. Also, the region is gaining traction, owing to the rapid growth of the e-commerce industry. Large enterprises as well as SMEs in the region have become more aware of payment monitoring solutions and increasingly adopting them to prevent cyber threats. Moreover, the SME sector in the region is exhibiting tremendous growth, which is predicted to stimulate the implementation of these solutions for better security at a reasonable cost.
The market is highly competitive in nature and is characterized by the presence of several big players that hold a significant market share. Major players are emphasizing on either acquiring or forming collaborations with small players to share business intelligence and expertise. For instance, in October 2018, Fiserv, Inc. collaborated with DadeSystems to provide financial institutions with a better automatic accounts receivables processing solution. This collaboration will help them to get access to DadePay AR automation with Fiserv serving as a connection point. The main aim is to reduce the receivable cost and improve business accuracy. Some of the prominent players in the payment monitoring market include:
Fair Isaac Corporation
ACI Worldwide Inc.
Thomson Reuters Corporation
Market size value in 2020
USD 10.95 billion
Revenue forecast in 2027
USD 31.05 billion
CAGR of 16.1% from 2020 to 2027
Base year for estimation
2016 - 2018
2020 - 2027
Revenue in USD million/billion and CAGR from 2020 to 2027
Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Solution, service, deployment, enterprise size, application, end-use, and region
North America; Europe; Asia Pacific; Latin America; and MEA
U.S.; Canada; U.K.; Germany; China; India; Japan; Brazil
Key companies profiled
BAE Systems; Fair Isaac Corporation; ACI Worldwide Inc.; Fiserv Inc.; Oracle Corporation; SAS Institute; FIS; Nice Ltd.; Software AG; and Thomson Reuters Corporation
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global payment monitoring market report based on solution, service, deployment, enterprise size, application, end-use, and region:
Solution Outlook (Revenue, USD Million, 2016 - 2027)
Dashboard & Reporting
Watch List Screening
Service Outlook (Revenue, USD Million, 2016 - 2027)
Integration & Deployment
Support & Maintenance
Training & Consulting
Deployment Outlook (Revenue, USD Million, 2016 - 2027)
Enterprise Size Outlook (Revenue, USD Million, 2016 - 2027)
Small & Medium Enterprises
Application Outlook (Revenue, USD Million, 2016 - 2027)
Customer Identity Management
Fraud Detection & Prevention
End-use Outlook (Revenue, USD Million, 2016 - 2027)
Energy & Utility
IT & Telecom
Regional Outlook (Revenue, USD Million, 2016 - 2027)
b. The global payment monitoring market size was estimated at USD 9.62 billion in 2019 and is expected to reach USD 10.95 billion in 2020.
b. The global payment monitoring market is expected to grow at a compound annual growth rate of 16.1% from 2020 to 2027 to reach USD 31.05 billion by 2027.
b. North America held the largest share of 35% in 2019 as the region has become early adopter of leading technologies and solutions for efficient business operations. Additionally, the region has a strong presence of established vendors such as FIS, Fiserv, Oracle, SAS, and ACI Worldwide, among others and the increasing adoption of online transactions in government sectors is also propelling the market growth.
b. Some key players operating in the payment monitoring market include BAE Systems, Fair Isaac Corporation, ACI Worldwide Inc., Fiserv Inc., Oracle Corporation, SAS Institute, FIS, Nice Ltd., Software AG, and Thomson Reuters Corporation.
b. Key factors that are driving the market growth include the increasing awareness among organizations to comply with the regulations and standards related to payment services. Further, the growing trend of having proactive risk alerting systems by using advanced analytics is also propelling the growth.
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