{"id":358270,"date":"2025-08-20T14:15:37","date_gmt":"2025-08-20T08:45:37","guid":{"rendered":"https:\/\/www.technologyforyou.org\/?p=358270"},"modified":"2025-08-20T14:15:37","modified_gmt":"2025-08-20T08:45:37","slug":"network-payment-tokenization-revenue-set-to-grow-to-usd7-billion-by-2032-as-payment-giants-visa-and-mastercard-expand-presence-in-growing-market","status":"publish","type":"post","link":"https:\/\/www.technologyforyou.org\/network-payment-tokenization-revenue-set-to-grow-to-usd7-billion-by-2032-as-payment-giants-visa-and-mastercard-expand-presence-in-growing-market\/","title":{"rendered":"Network Payment Tokenization Revenue Set to Grow to USD$7 billion by 2032 as Payment Giants Visa and Mastercard Expand Presence in Growing Market"},"content":{"rendered":"

The influx of card issuers and payment networks into the tokenization market via network tokenization offerings creates new opportunities for other vendors in the payment tokenization market. At the same time, however, it also threatens to squeeze traditional TSPs out of this segment.<\/span>\u00a0<\/a><\/i>\u00a0<\/a><\/i>\u00a0<\/a><\/i>\u00a0<\/a><\/p>\n

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Business models are adapting to keep pace with emerging players and evolving trends in the payment tokenization market, generating upselling and development opportunities for token service providers (TSPs), payment technology providers, and tokenization platform providers.\u00a0ABI Research<\/strong>, a global intelligence firm, forecasts that network tokenization revenue will form the bulk of the tokenization market\u2019s revenue in the coming years, reaching USD$7 billion by 2032. The influx of card issuers and payment networks into the tokenization market via network tokenization offerings creates new opportunities for other vendors in the payment tokenization market. At the same time, however, it also threatens to squeeze traditional TSPs out of this segment.<\/span><\/p>\n

\u201cAs payment giants like Visa, Mastercard, and American Express make their official entry into the tokenization market via network tokenization solutions, the pressure is on Token Service Providers (TSPs), payment technology providers, and tokenization platform providers to prioritize diversification and modularity,\u201d said Aisling Dawson, ABI Research Industry Analyst.<\/strong> \u201cIn addition, these traditional players need to augment built-in, value-add features in their services and platforms in order to remain key market players in the tokenization ecosystem.<\/span><\/p>\n

\u201cWhile critical revenue opportunities remain for non-network tokenization, vendors must ensure their business models are flexible enough to deal with the influx of payment giants like Visa, Mastercard, and American Express into the tokenization market,\u201d Dawson said. \u201cThese card issuers and payment networks\u2019 network tokenization services will begin to gain traction ahead of the 2030 Mastercard deadline for sunsetting manual card input on Card Not Present (CNP) transactions.\u201d<\/span><\/p>\n

Successful vendors in this space are prioritizing differentiation, strategic market positioning, and innovation\u2014particularly in mobile SDK capabilities, web-based push provisioning, irreversible tokenization, and advances in passkey and biometric authentication. This includes TSPs and payment technology providers like Thales, IDEMIA, Futurex, Pagos, Bluefin, Fortanix, Giesecke+Devrient, and CPI Card Group. Concurrently, as tokenization adoption increases, tokenization orchestration platforms have a growing space in the ecosystem, with vendors like Spreedly, VGS, and Basic Theory currently out in front.<\/span><\/p>\n

The push towards cryptoagility is experiencing a new lease on life given the prospect of quantum computing. In addition, tokenized IoT wearables transactions are expected to boom throughout the next five years, stimulating increased payment token issuance. By 2027, the number of payment tokens issued is expected to constitute twice the number of physical payment cards in circulation.<\/span>\u00a0<\/strong><\/span><\/p>\n

\u201cWhile there are plenty of emerging opportunities for revenue generation and upselling in the payment tokenization market, vendors must adapt their business models to reflect the new challenges in this space,\u201d Dawson said. \u201cExploiting market disruptions such as the European Commission\u2019s decision regarding NFC access on Apple\u2019s iOS digital wallets and shifts in the legislative securitization of tokenization, introduced by the new PCI-DSS security requirements for tokens, will be critical to achieving long-term success in this market.<\/span><\/p>\n

\u201cWinning commercial strategies should focus on the new forms of tokenization entering the market,\u201d Dawson said. \u201cThese approaches should recognize the continued importance of standards and regulation in the payments space, and optimize solution deployment through customizable options, robust partnerships, collaborative sales models, and simplification of the tokenization migration process for prospective merchants and Payment Service Providers (PSPs).\u201d<\/span><\/p>\n

These findings are from ABI Research\u2019s\u00a0Payment Tokenization: Business Models and Ecosystems Platform Analysis\u00a0report.<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The influx of card issuers and payment networks into the tokenization market via network tokenization offerings creates new opportunities for other vendors in the payment tokenization market. At the same time, however, it also threatens to squeeze traditional TSPs out of this segment.\u00a0\u00a0\u00a0\u00a0 Business models are adapting to keep pace with emerging players and evolving […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14083],"tags":[],"class_list":{"0":"post-358270","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-technology-industry-news"},"_links":{"self":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts\/358270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/comments?post=358270"}],"version-history":[{"count":0,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/posts\/358270\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/media?parent=358270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/categories?post=358270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.technologyforyou.org\/wp-json\/wp\/v2\/tags?post=358270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}