Revenue from tokenisation provisioning and management in mobile payments has continued with significant growth and is expected to exceed $53 billion in 2025, from $18 billion in 2020, according to research from Juniper.
As the focus on security becomes increasingly prevalent, the report found tokenisation, where account details are replaced with data useless to fraudsters, is taking hold in both in-store and remote commerce.
This significant growth, which exceeds 180%, will be fuelled by increased use of OEM Pays in both in-store and remote commerce, as well as increasing adoption of tokenisation by digital wallet providers and their tighter integration into app checkout processes.
Research co-author, Susan Morrow, explained: “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.”
The research underlines the need for digital wallet providers to move to implement tokenisation immediately, if not already, and prioritise acceptance to increase security in checkout processes.
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.
It was also detailed in the research 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.