Mobile payment tokenisation revenue to exceed $53bn globally by 2025
A new study from Juniper Research has found that revenue from tokenisation provisioning and management in mobile payments will exceed $53 billion (€44.43 billion) in 2025, from $18 billion (€15.09 billion) in 2020.
The report found that tokenisation, where account details are replaced with data useless to fraudsters, is taking hold in both in-store and remote commerce. This strong growth, of over 180%, will be fuelled by the increased use of OEM Pays in both in-store and remote commerce, as well as the increasing adoption of tokenisation by digital wallet providers and their tighter integration into app checkout processes.
The research recommends that digital wallet providers move to implement tokenisation immediately, if not already, and prioritise acceptance to increase security in checkout processes.
Contactless catching up
The new research, Mobile Payment Data Protection: Tokenisation, Encryption & Market Forecasts 2021-2025, found that revenue from remote payment tokenisation will equate to 58% of total mobile payment tokenisation revenue in 2025. However, this compares with 84% in 2020. As mobile contactless payments are tokenised by default, accompanying tokenisation revenue is accelerating rapidly, with contactless enjoying boosted growth following the pandemic.
Susan Morrow
Research co-author Susan Morrow explains, ‘Tokenisation is quickly becoming ubiquitous for mobile payments; reflecting the need for mobile payments to offer superior security features. Tokenisation vendors must offer simple and compliant token provisioning and management solutions, in order to capitalise on the rapid growth in mobile payments usage.’
Gaining ground in remote payments
The research also found that the use of persistent tokens is increasing in remote payments; accounting for 52% of tokenised remote mobile payment transactions in 2025, from 41% in 2020. The report identified that the increasing dominance of digital wallets that use persistent tokens in eCommerce is driving this growth. As such, the report recommends that tokenisation vendors focus on token management systems to ensure that managing persistent tokens is as efficient as possible.
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