Revenues from tokenised mobile payments will exceed $40bn by 2024, with e-commerce being the major driver, according to a new study from Juniper Research.
Of the $40bn market, $30bn is expected to be through remote e-commerce, rather than contactless payments at the point of sale.
It is estimated the tokenised mobile payments market was worth around $17bn in 2019.
The research, Mobile Payment Data Security: Tokenisation, Encryption & Regulation 2020-2024, identified the use of standard tokens and multifactor authentication protocols through secure remote commerce will increase the use of such measures in browser-based commerce.
As 3D Secure 2.0 standards becomes mandatory for payment networks around the world, the researcher believes all remote payments will be tokenised by 2024, along with all near field communication-based payments.
The report also claims that more than 33% of tokens used for mobile payments will be persistent by 2024, due to universal card-on-file tokenisation systems which enable merchants to securely store payment credentials.
Furthermore, it states persistent tokens will decline for contactless payments as more single-use tokens are distributed.
The research author James Moar said, “Mobile payment involves a wide ecosystem of platforms, networks and devices. Many of these devices will not have sufficient hardware capacity to have strong on-device security, meaning cloud-based tokens will be necessary to ensure adequate security.”
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