Juniper Research, 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 that network tokenisation, process of replacing card payment data with network issued tokens, is able to balance security and friction more productively than other solutions, which is main concern within eCommerce market. The repeated usability of network tokens reduces instances a consumer is required to provide payment details; promoting limited friction.

Governing bodies to emulate India’s regulatory approach

The report anticipates a surge in network tokenisation mandates, following successful market implementations. A great example of this is Reserve Bank of India, which requires tokenisation for all credit and debit cards used for online transactions from October 2022. “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.” says research author Cara Malone.

Scalability within network tokenisation vital

The research found that surging eCommerce transaction volumes are placing strain on payment providers to handle 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 frictionless form of payment that eliminates need for manually entering payment data while securing checkout process.

For more information of report, visit here.

Comment on this article below or via Twitter: @IoTNow_OR @jcIoTnow