The popularity of tokenised payments will continue to spike according to new research from Juniper, which outlined the sector could see 58% growth over the next four years.
The research outlined the total number of tokenised payment transactions will exceed one trillion globally by 2026; rising from 680 billion in 2022.
At the heart of the growth is the rise of ‘one-click’ solutions, such as Click-to-Pay, using card-on-file tokenisation to store a customer’s payment credentials; enabling them to auto-fill their checkout details and complete transactions via a single click.
Tokenisation protects customers’ payment credentials when stored; replacing sensitive data with token values that hold no intrinsic value. This prevents malicious actors from gaining access to payment data in the event of a data breach.
As expectations of frictionless payments continue to elevate, tokenised payments will be embraced further, growing by 74% until 2026.
Furthermore, other benefits that will accelerate tokenised payments growth include time savings for the end user by eliminating the need for customers to re-enter payment credentials when shopping online.
The research also identified IoT payments as offering the largest growth in the tokenisation market over the next five years, with tokenised IoT transactions expected to reach 19 billion by 2027, growing 400% from just 3.8 billion in 2022.