NEWSBYTE New research from analyst firm Juniper Research predicts that the total volume of domestic money transfers via mobile devices will exceed $203 billion by 2024, up from $130 billion last year – an increase of 56 percent over five years.
Domestic peer-to-peer payments will drive this 10 percent annual growth, accounting for 80 percent of all domestic transfers by 2024.
Tokenisation will be critical to securing and enabling these transfers and increasingly take place in the cloud due to on-device security limitations. Tokenisation revenues will hit $40 billion globally by 2024, says the company.
A new Juniper Research report, Mobile Payment Data Security: Tokenisation, Encryption & Regulation 2020-2024, finds that the ability to use standard tokens and multi-factor authentication through Secure Remote Commerce will increase in browser-based commerce.
This will be aided by 3D Secure 2.0 standards. As a result, the authors believe that virtually all remote payments will be tokenised by 2024, along with all Near Field Communication-based payments.
The report forecasts that over one-third of the tokens used for mobile payments will be persistent by 2024, thanks to universal card-on-file tokenisation systems that allow merchants to securely store payment credentials, as well as some smartphone vendors providing persistent NFC tokens.
Juniper Research expects the use of persistent tokens to decline for contactless payments as solutions deploying single-use tokens gain market share. However, the report also predicts that the wider merchant ecosystem for remote payments will keep persistent tokens in common usage over the forecast period.
“Mobile payment involves a wide ecosystem of platforms, networks and devices,” said research author James Moar. “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.”
Source: Press release