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.

Global Tokenization Market will grow at 19% compound annual growth rate (CAGR) during the forecast period, from USD 2.3 Billion in 2021 to US$ 5.6 Billion by 2026.

Tokenization reduces data breach risk. This is the main driver behind the Tokenization Market. Tokenization can help businesses avoid the adverse financial effects of data theft. Merchants also benefit from tokenization because it minimizes security risks. Merchants store tokens rather than credit card numbers in the systems. Hackers can then acquire tokens that they aren’t using. Data theft has caused huge financial losses for banks and retailers. Tokenization can help reduce the risk of costly breaches.

The forecast period will see the service segment grow by Component at a higher CAGR

The services market is forecast to expand at a faster rate by Component. High growth in the services segment is due to technological advancements that have led to organizations wanting to implement solutions easily to existing infrastructure. The support provided by vendors for customers to use tokenization and manage their assets is called tokenization services. The two main types of tokenization service are managed services (professional services) and managed services (managed services).

The Services segment will hold the largest market share during the forecast period.

Market share is expected to increase in the Professional services market. These services can be provided by professionals or specialists who are experts in supporting business operations. These services include training, education, consulting and support.

API-Based segment will grow faster by Tokenization Technique in the forecast period

The API-Based segment will grow at an even higher rate of CAGR over the forecast period. API-Based tokenization transforms the Primary Account number (PAN), into tokens that can’t be reverse engineered to retrieve the original PAN information. Customers can reduce the risks of having critical information stored on local servers.

Protection for Research

Segmentation of the Tokenization Market can be made by component, services, application area, tokenization technique, deployment mode, organization size, verticals, or region. To gain insight on the market players, including their businesses, key strategies and solutions; product launches and enhancements; partnership, acquisitions, collaborations; business expansions and agreements; as well as the competitive landscape within the Tokenization Market, a thorough analysis was done.

In the report, we profile these key Tokenization vendors:

• Fiserv (NASDAQ:) (US)
• Visa (NYSE:) (US)
• Mastercard (NYSEA:) (USA)
• Micro Focus (UK)
• American Express (NYSE:) (US)
• Thales (France).
• Lookout (US).
• Futurex (US).
• CardConnect (US).
• FIS (USA).
• HelpSystems USA
• MeaWallet (Norway).
• TokenEx (US)
• Entrust USA
• Verifone (USA)
• Bluefin (US).
• WEX (NYSE.
• AsiaPay (Hong Kong).
• Shift4 (US)
• Worldline (France).
• Paragon Payment Solutions (USA)
• Marqueta (US).
• Payrix, USA
• HST (Brazil)
• Sequent (US).
• Sygnum (Switzerland)
• SecurionPay (Switzerland)
• Carta Worldwide Canada
• Encryption Consulting USA
• Randtronics Australia

Market Dynamics

• Drivers
  • You must be compliant with regulatory reporting standards and stay on top of them
  • Increased Financial Frauds – Growing need for Continuous Customer Experience, and Fraud Prevention
  • Tokenization reduces data breach risk
• Beware of Restraints
  • Inadequacy in Knowledge and Understanding about Tokens, and Ambiguity between Encryption & Tokenization among End-Users
  • Increased complexity in Implementation of Tokenization and Fraud Prevention
• Opportunities
  • Cloud-based Tokenization Solutions and Services in High Demand
  • Customers are increasingly inclined towards contactless payment options.
• Challenges
  • Poor Management and a lack of skilled workers hinder the creation of a user adoption process.
  • Limited Decentralized Blockchain-based Platforms Pose Regulatory Challenges

Case Study Analysis

• Orvis
• Google (NASDAQ)
• Bank Client

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