Total global revenue from tokenization provisioning and management for mobile payments will exceed US$53bn in 2025, an increase of more than 180% from US$18bn in 2020, according to a forecast by Juniper Research.
Growth “will be fuelled by the increased use of OEM Pays in both in-store and remote commerce, as well as the increasing adoption of tokenization by digital wallet providers and their tighter integration into app checkout processes,” the analysts say.
The ‘Mobile Payment Data Protection: Tokenization, Encryption & Market Forecasts 2021-2025’ report also predicts that revenue from remote payment tokenization will represent 58% of total mobile payment tokenization revenue in 2025, while revenue from the tokenization of contactless payments “is accelerating rapidly”.
In addition, the research found that the use of persistent tokens is increasing in remote payments, accounting for 52% of tokenized remote mobile payment transactions in 2025 compared with 41% in 2020.
The researchers add that the increasing dominance of digital wallets that use persistent tokens in ecommerce is driving this growth.