As Europe continues to witness high fraud rates, mainly during card-not-present payments, the need for robust identity access management (IAM) solutions especially in the sensitive government, financial services, and healthcare sectors is intensifying. The rapidly increasing uptake of mobile data services further highlight the need to comprehensively secure mobile devices. However, the rise in transactions and volume of data exchanged impacts the number of security processes required to ensure payment privacy protection as well as the total time taken to perform them. As such, the market is looking at solutions that externalise authentication and identity management to the cloud, thereby optimising cost and creating a single level of security for users globally.
New analysis from Frost & Sullivan (smartcards.frost.com), Payment Privacy Protection - Global Security Implications, finds that the government and financial services market for IAM solutions will grow at a compound annual growth rate of 29.7 percent and 31.2 percent respectively during the 2012-2018 period.
Most security conscious organisations today use the multi-factor authentication model. However, from a cost efficiency point of view, software IAM solutions are more relevant.
"Effective IAM solutions enable companies to identify users and create profiles. This helps determine whether they should be allowed access to sensitive data and also to simplify access management. The single sign-on (SSO) technology requires users to be identified only once," said Frost & Sullivan Information & Communication Technologies Global Programme Director Jean-Noël Georges. "In fact, new entrants and niche players in the payment privacy protection market could significantly benefit from offering flexible, cost-effective, cloud-based payment security solutions."
Unfortunately, the plethora of privacy breaches that occurred globally in 2013 have made end users across Europe sceptical of payment security solutions. The most serious infringement involved the unauthorised storage of private emails and phone calls of US citizens by the National Security Agency and major social media players.
"To maintain the consistency and integrity of stored information, security processes and practices should be aligned with enterprise policies," remarked Georges. "It is also important for vendors to adhere to local and national policies to ensure payment privacy protection across Europe."
If you are interested in more information on this research, please send an email to Chiara Carella, Corporate Communications, at chiara.carella[.]frost.com, with your full contact details, company name and website, city, and country.
Payment Privacy Protection - Global Security Implications is part of the Digital Identification Growth Partnership Service program. Frost & Sullivan’s related research services include: The Future of mPayments in Europe and Battle of the Platforms in European Smart Energy. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Payment Privacy Protection - Global Security Implications / MA08-33