Annual revenue from tokenized mobile payments will more than double from $17 billion in 2019 to $40 billion by 2024, according to a new report from Juniper Research.
The research shows that more than $30 billion of the total will stem from remote e-commerce transactions rather than mobile payments at the point of sale.
“This is mainly because of the use case — mobile payment growth as a whole is beginning to plateau, as the use case confines how often people transact over mobile at (the) POS,” lead analyst James Moar told Mobile Payments Today via email. “Contactless payment is also limited both by the transaction size and the overall use case at (the) POS.”
The research shows that the ability to use tokens and multi-factor authentication through Secure Remote Commerce will increase the use of tokenization in browser-based e-commerce, where it has been previously limited to native apps.
European regulators have been working to upgrade security requirements for SRC, which would require a higher level of multi-factor authentication in order for transactions to be approved.
Companies: Juniper Research