Global network tokenised transactions could double by 2029, rising from 283 billion in 2025 to 574 billion in 2029; according to new research by fintech and payments markets expert Juniper Research.
As the popularity of digital payments continues to grow, the importance of the role of network tokenisation is also on the rise. Network tokens are virtual representations that replace sensitive card details with tokens issued by card networks. Now, Juniper Research predicts that the next four years should see huge growth for these types of transactions.
By involving the issuing bank early in the transaction authorisation process, network tokens shift the liability from the merchant to the issuer. This early issuer involvement significantly boosts authorisation rates, which has the potential to align card-not-present approval rates with those of card-present transactions.
While all types of fraud appear to also be on the rise, the role of network tokenisation in securing digital payments should also drive merchant adoption by increasing consumer trust levels. Juniper’s report found that network tokenisation, through ensuring sensitive card information is protected at every stage of the transaction lifecycle, will significantly reduce fraud rates for e-commerce payments.
And this growth appears to already be well underway. By 2024, Mastercard had network-tokenised one out of every four transactions in its network, growing at a rate of 50 per cent per year.
Time is ticking
With global payments giant Visa set to impose stricter global fraud thresholds by January 2026, which requires merchants to reduce fraud, Juniper says that it is ‘paramount’ that payment processors and merchants adopt network tokens.
With card-not-present fraud posing a greater threat to merchants than card-present transactions, the adoption of innovative fraud prevention solutions like network tokens will become necessary. Token Service Providers (TSPs) must develop value-added services, such as real-time transaction analysis tools, to aid merchants in monitoring and reducing their fraud rate.
Apple has recently enabled third-party developers to access Near Field Communication (NFC) functionality on iPhones, creating innovation opportunities that TSPs must capitalise on. A lucrative opportunity for TSPs involves forming partnerships with new digital wallets to integrate network tokenisation, giving them the ability to compete directly with Apple Pay.
