Tokenization will exceed $40bn by 2024: research

The wider merchant ecosystem for remote payments will keep persistent tokens in common usage over the next 5 years

tokenization

Tokenization will exceed by 2024: research. Source: unsplash.com

According to Juniper Research, annual incomes from tokenized mobile payments will grow $40 billion by 2024, exceeding from an estimated $17 billion the year before. More than $30 billion will flow through remote e-commerce, rather than contactless payments at the point of sale.

The use of standard tokens and multifactor authentication protocols through Secure Remote Commerce will increase the use of security measures in browser-based commerce.

The research reveals that 3D Secure 2.0 standards, which become mandatory for most payment networks worldwide, will be applied to the process. This way, all remote payments are believed to be tokenized by 2024.

Mobile payment involves a wide ecosystem of platforms, networks, and devices. Many of these devices will not have sufficient hardware capacity to have strong on-device security, meaning cloud-based tokens will be necessary to ensure adequate security
James Moar, research author

More than 33% of tokens used for mobile payments will be persistent by 2024. That would happen due to universal card-on-file tokenization systems, allowing merchants to securely store payment credentials. Besides, those smartphone vendors providing persistent NFC tokens would have an equal impact as well.

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