A new study from Juniper Research forecasts that the number of network-tokenised IoT transactions, comprising wearables, connected vehicles and connected home devices, will reach 62.7 billion by 2028, up from 10.5 billion in 2023.
Network tokenisation will be crucial among payment-enabled IoT devices, as they become more prevalent in the payments industry, to reduce the increasing risk of fraud. If IoT payments are to become popular in the mainstream payments market, then IoT payments must be underpinned by a technology that can protect essential payment information, which network tokenisation can provide.
Without network tokenisation as a basis for security, IoT payments will face challenges around reliability and ease of use; limiting overall adoption.
Research author – Cara Malone remarked: “In order for IoT devices to become a method of payment that is secure, and to reduce CNP (Card not Present) fraud, IoT payment providers must incorporate tokenisation into their system.Tokenisation ensures that IoT payments can offer the same level of security as with card present transactions; providing a platform for IoT payments to scale.”
The implementation of network-tokenised transactions will improve checkout conversion rates, through the simplicity and security that they provide. Juniper Research anticipates that, given the importance of maximising conversion rate and reducing fraud, there will be a significant and continually growing demand for network tokenisation solutions across payment types. Based on this strong demand, we forecast that the number of network-tokenised transactions globally will reach 407 billion in 2028, from 140 billion in 2023.
The new market research suite offers the most comprehensive assessment of the network tokenisation market to date, providing analysis and forecasts of over 48,500 datapoints across 60 markets over five years. It includes a ‘Competitor Leaderboard’ and examination of future market opportunities.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below: