Global Tokenization Market Study, 2022 – Growing Inclination of Customers Towards Contactless Payments, Driving Opportunities
The “Global Tokenization Market with COVID-19 Impact, by Component, Application Area (Payment Security, User Authentication, and Compliance Management), Tokenization Technique, Deployment Mode, Organization Size, Vertical and Region – Forecast to 2026” report has been added to ResearchAndMarkets.com’s offering.
The Global Tokenization Market is projected to grow from USD 2.3 billion in 2021 to USD 5.6 billion by 2026, at a Compound Annual Growth Rate (CAGR) of 19% during the forecast period.
Tokenization reducing the risk from data breaches is a major driver for the Tokenization Market. Tokenization helps protect businesses from the negative financial impacts of data theft. Tokenization also minimizes the impact of security breaches for merchants. Since merchants are storing tokens instead of credit card numbers in their systems, hackers will acquire tokens that are of no use to them. Tokenization helps minimize the expensive breaches that many retailers and banks have experienced huge losses as a result of data theft.
By Component, the services segment to grow at the higher CAGR during the forecast period
By Component, the services segment is expected to grow at a higher growth rate during the forecast period. The high growth of the service segment can be attributed to the advancements in technology leading to demand from organizations to help implement the solutions with ease to their existing infrastructure. Tokenization services comprise the support offered by vendors to assist their customers in the efficient use of tokenization solutions and their maintenance. Tokenization services have been segmented into professional services and managed services.
By Services, the Professional services segment to hold the larger market size during the forecast period
The Professional services segment is expected to hold a larger market size. Professional services are those services that are offered through professionals, specialists, or experts for supporting business operations. They include consulting, integration, training and education, and support and maintenance services.
By Tokenization Technique, API-Based segment to grow at the higher CAGR during the forecast period
The API-Based segment is projected to grow at a higher CAGR during the forecast period. API-Based tokenization converts the Primary Account Number (PAN) into tokens that cannot be reverse-engineered to bring back the original PAN information. It helps customers to reduce the risk of storing critical information on their local servers.
Research Coverage
The Tokenization Market is segmented by Component, Services, Application Area, Tokenization Technique, Deployment Mode, Organization Size, Verticals, and Region. A detailed analysis of the key industry players has been undertaken to provide insights into their business overviews; solutions and services; key strategies; new product launches and product enhancements; partnerships, acquisitions, and collaborations; agreements and business expansions; and competitive landscape associated within the Tokenization Market.
The following key Tokenization vendors are profiled in the report:
- Fiserv (US)
- Visa (US)
- Mastercard (US)
- Micro Focus (UK)
- American Express (US)
- Thales (France)
- Lookout (US)
- Futurex (US)
- CardConnect (US)
- FIS (US)
- HelpSystems (US)
- MeaWallet (Norway)
- TokenEx (US)
- Entrust (US)
- Verifone (US)
- Bluefin (US)
- WEX (US)
- AsiaPay (Hong Kong)
- Shift4 (US)
- Worldline (France)
- Paragon Payment Solutions (US)
- Marqueta (US)
- Payrix (US)
- HST (Brazil)
- Sequent (US)
- Sygnum (Switzerland)
- SecurionPay (Switzerland)
- Carta Worldwide (Canada)
- Encryption Consulting (US)
- Randtronics (Australia)
Market Dynamics
- Drivers
- Need to Stay Compliant and Meet Regulatory Reporting Standards
- Growing Need to Ensure Continuous Customer Experience and Maintain Fraud Prevention Levels due to Increasing Financial Frauds
- Tokenization Reducing the Risk from Data Breaches
- Restraints
- Lack of Knowledge and Understanding About Tokens and Ambiguity Between Encryption and Tokenization Among End-Users
- Increase in Complexities in the Implementation of Tokenization and Fraud Prevention
- Opportunities
- Rising Demand for Cloud-based Tokenization Solutions and Services
- Growing Inclination of Customers Toward Contactless Payments
- Challenges
- Lack of Skilled Workforce and Poor Management in Creating a User Adoption Process
- Challenges with Regulatory Alignment due to Maximum Decentralized Blockchain-based Platforms
Case Study Analysis
- Orvis
- Banking Client
Text source: DailyCoin.com
