Worldwide tokenised payment transactions are expected to reach over 1 trillion by 2026 due to the rise of ‘one-click’ solutions
Source: blog.2checkout.com
A new study from Juniper Research estimates that the total number of tokenised payment transactions will rise from 680 billion in 2022 to over 1 trillion globally by 2026. This would be an impressive growth of 58% over the next 4 years. The main factors contributing to this growth are ‘one-click’ solutions, such as Click-to-Pay.
Similar technologies use card-on-file tokenisation to store a customer’s payment credentials. Therefore, payment providers may auto-fill their checkout details and complete transactions via a single click. Furthermore, card networks are encouraging mass adoption of tokenisation at the network level to improve payment approval rates.
The new report predicts that eCommerce tokenised volume will grow by 74% by 2026. This growth is connected to the increasing customer expectation of a frictionless checkout experience. That’s exactly what one-click solutions offer via the tokenisation method.
Besides, the research identified IoT payments as those promoting the largest growth within the tokenisation market over the next 5 years. Tokenised IoT transactions are expected to reach 19 billion by 2027, growing 400% from just 3.8 billion in 2022.
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