Juniper Research yesterday released a new study 'Global Network Tokenisation Market 2023-2028', that forecasts substantial growth of 190% in network-tokenised transactions; reaching 400 billion globally in 2028, up from 140.3 billion in 2023. These transactions include online and desktop eCommerce transactions, mobile payments and IoT transactions.
The study found network tokenisation, the process of replacing card payment data with unique network-issued tokens, is able to balance security and friction more effectively than other solutions – a key concern within the eCommerce market. The repeated usability of network tokens reduces the instances a consumer is required to provide payment details; promoting limited friction.
The report anticipates a surge in network tokenisation mandates, following successful market implementations. A great example of this is the Reserve Bank of India, which requires tokenisation for all credit and debit cards used for online transactions from October 2022.
The research found that surging eCommerce transaction volumes are placing great strain on payment providers to handle the growing workload, without compromising user experience or security. It is important for network tokenisation vendors to deliver scalable solutions which provide longevity, such as Click to Pay; a highly frictionless form of payment that eliminates the need for manually entering payment data whilst securing the checkout process.
Source: www.juniperresearch.com/researchstore/fintech-payments/network-tokenisation-market-research-report
Research author Cara Malone
As the number of transactions and payment methods within eCommerce continues to increase, it is important for governing bodies to take action through implementing regulations and mandates. These new mandates will represent an important opportunity for network tokenisation vendors to grow their revenue.
