Market Outlook:

The anticipated global payment card skimming market size is poised to reach USD 2.9 Billion by 2024, with a projected escalation to USD 5.2 Billion by 2032, reflecting a compound annual growth rate (CAGR) of 9.7% during the forecast period. 

Payment card skimming is a dishonest and illegal technique in which thieves utilize specialized equipment to surreptitiously record payment card information during what seems to be a safe and routine transaction. Usually, the cardholder is unaware that their private data is being stolen when these instances take place. A skimming device, which is covertly affixed to genuine card readers or point-of-sale (POS) systems, makes the fraud possible. These devices are hard to spot as they are made to look discrete and frequently mixed in with the equipment. Critical information recorded on the card's magnetic stripe or chip is copied by the skimming device when the cardholder puts their payment card into the compromised reader. Information like the card number, expiration date, and occasionally even the cardholder's name is included in this data. Fraudsters may then use the stolen data to build fake cards, conduct illegal activities, or sell the information on the dark web for more profit. This kind of data theft is especially worrisome since it takes advantage of routine behaviors like using ATMs to withdraw cash, filling up at petrol stations, or shopping at retail establishments.

Market Dynamics:

Driver:

The growing propagation of electronic payments boosts the growth of the payment card skimming market. Financial transactions are now quicker, more efficient, and much more accessible as the widespread usage of digital payment technologies including ATMs, Point-of-Sale (POS) systems, and e-commerce platforms. However, due to the larger dependence on these technologies, the payment ecosystem is now more helpless despite these benefits. Cash withdrawals and account balance checks are two common banking procedures carried out by Automated Teller Machines (ATMs). The widespread use of ATMs in both urban and rural regions makes them a popular target for skimming devices. Criminals often fit covert cameras or affix distinct skimming devices to the card reader slot to record the user's entered Personal Identification Number (PIN). A usual target for skimming activities is point-of-sale (POS) systems, which are used in restaurants, trade establishments, and other service-oriented enterprises. These terminals could be damaged by fraudsters to integrate skimming devices that imprison card information as it is implanted or swiped. E-commerce platforms are another susceptible area where card information can be captured using advanced phishing or malware assaults, even if they do not use actual skimming machines. Card-based transactions have increased due to the ease and effectiveness of digital payment technology; which criminals take advantage of by placing skimming devices in busy areas. 

Restraint:

The rising regulatory measures hamper the growth of the payment card skimming market. Higher security standards for financial transactions are required by extensive rules that have been implemented by authorities worldwide. The Payment Card Industry Data Security Standard (PCI DSS), for example, commands that businesses manage cardholder data and put strong security measures in place, such as firewalls, encryption, and routine payment system monitoring. Businesses are obligated to implement strict security measures since nonfulfillment with these standards can lead to noteworthy fines and the destruction of their brand. The switch from conservative magnetic stripe cards to EMV (Europay, MasterCard, and Visa) chip-enabled cards has been raced up by guidelines in several nations. Since EMV cards generate a unique transaction code that cannot be reused, unlike static data saved on magnetic stripes, the risk of skimming is greatly reduced.

Opportunity:

The increasing integration of artificial intelligence creates a lucrative opportunity for the growth of the payment card skimming market. The identification and prevention of skimming activities are being revolutionized by Artificial Intelligence (AI) and Machine Learning (ML) technologies, which are offering creative methods to deal with this serious security problem. These technologies improve the capacity of businesses and financial institutions to recognize and successfully counteract skimming attempts by utilizing sophisticated algorithms and real-time data analysis. Large volumes of transactional data can be analyzed in real time by AI-powered systems to find trends and irregularities linked to skimming activity. When questionable activity is spotted, AI systems can send out real-time notifications. Financial institutions can react quickly to these notifications by alerting consumers, deleting compromised cards, and turning off impacted ATMs or point-of-sale terminals. This prompt action lessens the impact of skimming fraud and lowers monetary losses.

Challenge:

Customers' ignorance of the dangers and warning signals of skimming devices is one of the biggest obstacles to stopping payment card skimming. When they swipe their cards at POS systems or enter them into ATMs, many customers are not aware that they could be skimmed, making them susceptible to fraud. Customers might not take the necessary safety measures, including using more secure payment methods or looking for suspicious objects on ATMs, if they don't have a more comprehensive awareness of these risks.

Key Players:

• Quercia Software
• Riskskill Inc.
• C2C Smartcompliance
• Complianceforge
• Rivial Data Security
• Matrix IFS
• BWise
• Fiserv Inc.
• Investedge, Inc.
• Sesame Software
• Diebold Nixdorf Incorporated
• Trend Micro Incorporated
• Mastercard
• Others

Recent Development:

• In February 2023, Mastercard established a partnership with Network International, the premier digital commerce facilitator in the Middle East and Africa, to handle fraud, declines, and chargebacks to lower costs and risk for acquirers. Through the collaboration, Network will introduce Mastercard's Brighterion Artificial Intelligence (AI) technology throughout the area, offering acquirers and companies merchant monitoring and transaction fraud screening.

Segment Insights:

By Component

The solution segment of the component holds the largest position for the payment card skimming market. Due to progressive encryption technologies like end-to-end encryption and tokenization, which have increased reputation as effective ways to defend sensitive cardholder data by accounting for more than two-thirds of the global payment card skimming market income. It is expected that this segment will remain to hold its leadership position all through the estimate period. To guarantee that data is safely transferred and retained during the transaction process, point-of-sale terminals, and payment processing systems are increasingly integrating these solutions.

By Deployment

The on-premise segment, which accounted for almost two-thirds of the global payment card skimming market revenue, held the largest market share by deployment mode. It is anticipated to continue to hold this position throughout the forecast period due to improved physical security measures, such as surveillance cameras, tamper-evident seals, and secure card reader installations, which are essential in thwarting on-premise skimming attacks.

Regional Insights:

The market for payment card skimming is dominated by the North America region. More than a third of the money obtain by payment card skimming originates from North America. The complexity of payment card skimming attacks in North America has increased, with criminals installing sophisticated technology and policies to fix skimming devices on point-of-sale (POS) terminals, gas pumps, and ATMs. However, over the course of the estimate period, the Asia-Pacific region is expected to capability the market's fastest growth. This is due to the online skimming attacks, often recognized as "Magecart-style attacks," have been growing in the Asia-Pacific area. Cybercriminals inset malicious code into e-commerce websites to rip-off payment details through online purchases.

Segmentation:

By Component

• Solution
• Service 

By Organization Size

• SMEs
• Large Enterprises

By Deployment

• On-Premises
• Cloud-Based

By Application

• Identity Theft
• Payment Fraud
• Money Laundering
• ATMs
• Others

By Region

North America

• USA

• Canada

• Mexico

Europe

• France

• UK

• Spain

• Germany

• Italy

• Rest of Europe

Asia Pacific

• China

• Japan

• India

• South Korea

• Rest of Asia Pacific

Middle East & Africa

• GCC

• South Africa

• Rest of the Middle East & Africa

South America

• Brazil

• Argentina

• Rest of South America

What to Expect from Industry Profile?

1. Save time carrying out entry-level research by identifying the size, growth, major segments, and leading players in the Payment Card Skimming market in the world.

2. Use PORTER’s Five Forces analysis to determine the competitive intensity and therefore market attractiveness of the Global Payment Card Skimming market.

3. Leading company profiles reveal details of key Payment Card Skimming market players’ global operations, strategies, financial performance & recent developments.

4. Add weight to presentations and pitches by understanding the future growth prospects of the Global Payment Card Skimming market with forecast for the decade by both market share (%) & revenue (USD Million).

FAQ’s

1) What are the major factors driving the growth of the Global Payment Card Skimming Market?

• The growing propagation of electronic payments boosts the growth of the payment card skimming market.  

2) What would be the CAGR of the Global Payment Card Skimming Market over the forecast period?

• The Global Payment Card Skimming Market is poised to grow at a CAGR of 9.7% from 2024 to 2032.

3) Which region will provide more business opportunities for the growth of the Global Payment Card Skimming Market in the future?

• The Asia Pacific region is expected to create more opportunities in the market.

4) Who are the major players dominating the Global Payment Card Skimming Market?

• Quercia Software, Riskskill Inc., C2C Smartcompliance, Complianceforge, Rivial Data Security, Matrix IFS, BWise, Fiserv Inc., Investedge, Inc., Sesame Software, Diebold Nixdorf Incorporated, Trend Micro Incorporated, Mastercard, Others. 

5) What are the segments in the Global Payment Card Skimming Market?

• By Component, By Organization Size, By Deployment, and By Application are the industry key segments considered for research study.

6) What is the estimated market revenue for the Global Payment Card Skimming Market in 2032?

The estimated revenue for the Global Payment Card Skimming Market in 2032 is USD 5.2 Billion.