Study suggests mobile payment tokenization revenue could exceed $53 billion by 2025

A new study suggests that revenue from tokenization provisioning and management in mobile payments will exceed $53 billion in 2025, from $18 billion in 2020.

The report from Juniper Research found tokenization, where account details are replaced with data useless to fraudsters, is taking hold in both in-store and remote commerce.

This strong growth, of over 180%, will be fueled by increased use of OEM Pays in both in-store and remote commerce, as well as increasing adoption of tokenization by digital wallet providers and their tighter integration into app checkout processes.

The research recommends that digital wallet providers move to implement tokenization immediately, if not already, and prioritize acceptance to increase security in checkout processes.

The new research, titled Mobile Payment Data Protection: Tokenization, Encryption & Market Forecasts 2021-2025, found that revenue from remote payment tokenization will equate to 58% of total mobile payment tokenization revenue in 2025.

However, this compares with 84% in 2020. As mobile contactless payments are tokenized by default, accompanying tokenization revenue is accelerating rapidly, with contactless enjoying boosted growth following the pandemic.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.