BASINGSTOKE, U.K.– A new forecast predicts substantial growth of 190% in network-tokenized transactions, with volume reaching 400 billion globally in 2028, up from 140.3 billion in 2023.
According to Juniper Research, which released the forecast, those tokenized transactions include online and desktop eCommerce transactions, mobile payments and IoT transactions.
The study found network tokenization, 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, Juniper said.
Juniper said the report anticipates a surge in network tokenization mandates, following successful market implementations. A great example of this is the Reserve Bank of India, which requires tokenization for all credit and debit cards used for online transactions from October 2022, Juniper added.
“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,” said research author Cara Malone. “These new mandates will represent an important opportunity for network tokenization vendors to grow their revenue.”
Scalability is Vital
According to Juniper, the research further 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 tokenization 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,” Juniper stated.
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