A new study from Juniper Research, the foremost experts in payment markets, 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.
Data Protection Provided by Tokenisation Vital to Unlocking IoT Payments
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.”
Network Tokenisation Key for Lowering Cart Abandonment
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. Juniper Research