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Pulished Date February, 2020
ID: 8992
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Global Tokenization Market Analysis - Segmentation by Component (Solutions and Services), Application Area (Payment Security, User Authentication, Compliance Management), Tokenization Technique (API-Based and Gateway-Based) Deployment Mode (Cloud and On-Premises), Organization Size (SMEs and Large Enterprises), Vertical (BFSI, Healthcare, IT and ITes, Government, Retail and eCommerce, Energy and Utilities, and Others), and Region - Forecast to 2025

Pulished: February, 2020
ID: 8992
Pages: 155

Global Tokenization Market Size & Growth (2020 - 2025)

The global tokenization market is relied upon to develop from USD 1.9 billion in the year 2020 to USD 4.8 billion by 2025, developing at a compound annual growth rate (CAGR) of 19.5% during the conjecture time frame.

Tokenization is identified with information security where it prevents unauthorized access. It processes information applications with authority and request token to interface and returns back to delicate information after detokenization.


Expanded arrangement of clients toward contactless payments because of the COVID-19 episode has put restrictions on the utilization of cash notes because of the odds of spread of virus through surfaces. This deficiency has revolutionised the manner in which online payments were utilized. Bother free instalments with no help and need to be present physically for paying have energized the development of contactless instalment frameworks over the globe. Among contactless instalment arrangements, mobile is the main selection of shoppers. These contactless payments have resulted in the increased demand for tokenization as it is essential to secure the authenticity of the transaction. Cost decrease is one of the primary drivers of contactless frameworks. Contactless payments have helped end clients too firms move away from wire transfer, which is the second-most favorite and exploited medium for cyber hackers. Therefore, tokenization plays a crucial role in protecting information, offering growth potential for the global marketplace.

For instance, contactless payments are picking up visibility in Europe. Almost 90% of the business leaders in Europe have just put resources into contactless frameworks. As per a study delivered by Visa, 82% of Taiwanese buyers have utilized contactless payments. In addition, MasterCard's in-store contactless exchanges were 61% in the Czech Republic, 41% in Poland, 27% in Hungary, and 27% in Slovakia. As indicated by the Association for Financial Professionals, 66% of the cardholders in Australia have contactless cards that empower them to tap and pay. These insights underline the way that clients are getting adjusted toward the utilization of contactless payments, which is foreseen to reinforce the growth of the global tokenization market in the coming years. With upgrades in advances, fraud levels would likewise increment, increasing the need for novel solutions, for example, tokenization, to manage new attacks.


Absence of information and comprehension about tokens and ambiguity among encryption and tokenization among end clients are acting as main limitations to the worldwide tokenization business.

In spite of the fact that tokenization is definitely not another innovation in the payment security framework, many end clients keep utilizing the old payment security framework, which is more exposed when contrasted with tokenization. In contrast to encryption, tokenization replaces basic data with 'tokens' rather than moving essential data from credit/charge cards. Tokenization gives greater security if security suppliers are prepared to go through huge payment of money. Associations, particularly SMEs, need information and comprehension about tokenization. Moreover, budget constraints additionally confine SMEs to substitute old innovations and manage payment frauds utilizing customary security solutions. This issue existed even before COVID-19 and would persevere even after the pandemic.


  • Based on the component, the global tokenization market is bifurcated as solutions and services.
  • By the application area, the market is separated as payment security, user authentication, compliance management.
  • Based on the tokenization technique, the market is divided into API-based and gateway-based.
  • Based on the deployment mode, the global tokenization market is categorized as cloud and on-premises.
  • Based on the enterprise size, SMEs fragment is estimated to develop at a higher CAGR during the gauge time frame. SMEs are significantly receiving tokenization solutions and services for agreeing to obligations and dangers identified with frauds. These SMEs are receiving tokenization solutions for shielding their sensitive information from network vulnerabilities and frauds. One of the prime intentions of frauds focusing on SMEs is to infiltrate through their applications to get to client data, instalment subtleties, and other secret data. Cybercriminals exploit poor security among SMEs by utilizing the automation strategy to fraud a huge number of users all at once. SMEs are progressively seeing cloud-based tokenization solutions for save money, time, and assets. The monetary limitations looked by SMEs are tended to by Tokenization as a Service (TaaS), with the section quickly conveying cloud-based tokenization payments, accordingly, driving the development of the tokenization market for SMEs.
  • Based on the industry vertical, BFSI segment is estimated to hold the biggest market size during the outlook period. The BFSI vertical is the target of cybercriminals, as it manages worldwide financial transactions. It shows countless financial exchanges, which are appealing focuses for cybercriminals. Subsequently, it is consistently watching out for cutting edge security framework and services to ensure its representatives, clients, resources, workplaces, branches, and activities; thus, it holds a critical portion of the tokenization market by vertical. Tokenization payments are well known and have a high adoption rate in the BFSI vertical, as they help associations in the vertical to manage PCI DSS regulatory compliance. Furthermore, the vertical as often as possible presents better than ever monetary items and services to improve business activities, pulling in hackers who look for sensitive client data. With its offices, for example, smart banking, internet banking, and mobile banking, the BFSI vertical would need to organize overall security.


Being a profoundly managed continent, the presence of guidelines, for example, CCPA, flood in cyberattacks, particularly payment frauds across businesses, is foreseen to drive the requirement for tokenization techniques across North American nations. Government activities toward handling financial cheats and consistence guidelines started by nations pointed towards improving online protection are relied upon to drive the requirement for strong tokenization practices in the Asia Pacific. Different elements that drive the adoption of tokenization payments are the expanded utilization of cell phones for online exchanges and internet shopping, and the fast adoption of online exchanges welcoming various expanded digital dangers. This has prompted the development of client base, ultimately prompting the urgent need to deploy tokenization solutions for secure and strengthen payment measures.


Major vendors in the global tokenization market include Fiserv, Mastercard, Visa, Micro Focus, American Express, TokenEx and MeaWallet.


After the episode of COVID-19, the volume of online instalments has flooded as individuals are inside and depending on digital channels for shopping. In Italy, eCommerce exchanges rose 81% toward the finish of February 2020. This expansion in web-based shopping over the globe has prompted an expansion in deceitful exercises, for example, data fraud fakes, vendor and triangulation cheats, subsidiary and clean fakes, phishing, pagejacking, and counter assaults. As online organizations depend basically on electronic exchanges to charge their clients for items and administrations, assailants are pulled into instalment frameworks as they contain delicate and significant cash related information. Internet shopping has gotten more well-known; in this way, security has become a significant issue for eCommerce organizations. Tokenization shields organizations from the negative monetary effect of information robberies. Indeed, even on account of penetrate, with tokenization, significant individual information is hard to take. In spite of the fact that tokenization can't shield organizations from information breaks, it can decrease monetary misfortunes from likely penetrates. Thus, tokenization can be useful in guaranteeing the congruity of client experience and keeping up extortion counteraction levels amid coronavirus transmission.

1. Introduction                                 

                1.1 Market Definition                    

                1.2 Scope of the report                 

                1.3 Study Assumptions                 

                1.4 Base Currency, Base Year and Forecast Periods                           

2. Research Methodology                                           

                2.1 Analysis Design                         

                2.2 Research Phases                      

                                2.2.1 Secondary Research           

                                2.2.2 Primary Research 

                                2.2.3 Data Modelling     

                                2.2.4 Expert Validation  

                2.3 Study Timeline                          

3. Report Overview                                        

                3.1 Executive Summary                

                3.2 Key Inferencees                       

4. Market Dynamics                                       

                4.1 Impact Analysis                        

                                4.1.1 Drivers      

                                4.1.2 Restaints 

                                4.1.3 Opportunities        

                4.2 Regulatory Environment                       

                4.3 Technology Timeline & Recent Trends                            

5. Competitor Benchmarking Analysis                                    

                5.1 Key Player Benchmarking                     

                                5.1.1 Market share analysis         

                                5.1.2 Products/Service 

                                5.1.3 Regional Presence

                5.2 Mergers & Acquistion Landscape                      

                5.3 Joint Ventures & Collaborations                        

6. Market Segmentation                                              

                6.1 Tokenization Market, By Component                              

                                6.1.1 Solutions 

                                6.1.2 Services   

                                6.1.3 Market Size Estimations & Forecasts (2019-2024)   

                                6.1.4 Y-o-Y Growth Rate Analysis              

                                6.1.5 Market Attractiveness Index           

                6.2 Tokenization Market, By Application Area                     

                                6.2.1 Payment Security 

                                6.2.2 User Authentication           

                                6.2.3 Compliance Management

                                6.2.4 Market Size Estimations & Forecasts (2019-2024)   

                                6.2.5 Y-o-Y Growth Rate Analysis              

                                6.2.6 Market Attractiveness Index           

                6.3 Tokenization Market, By Tokenization Technique                      

                                6.3.1 API-Based

                                6.3.2 Gateway-Based    

                                6.3.3 Market Size Estimations & Forecasts (2019-2024)   

                                6.3.4 Y-o-Y Growth Rate Analysis              

                                6.3.5 Market Attractiveness Index           

                6.4 Tokenization Market, By Deployment Mode                

                                6.4.1 Cloud        

                                6.4.2 On-Premises          

                                6.4.3 Market Size Estimations & Forecasts (2019-2024)   

                                6.4.4 Y-o-Y Growth Rate Analysis              

                                6.4.5 Market Attractiveness Index           

                6.5 Tokenization Market, By Organization Size                    

                                6.5.1 SMEs         

                                6.5.2 Large Enterprises 

                                6.5.3 Market Size Estimations & Forecasts (2019-2024)   

                                6.5.4 Y-o-Y Growth Rate Analysis              

                                6.5.5 Market Attractiveness Index           

                6.6 Tokenization Market, By Vertical                       

                                6.6.1 BFSI           

                                6.6.2 Healthcare              

                                6.6.3 IT and Ites

                                6.6.4 Government          

                                6.6.5 Retail and eCommerce      

                                6.6.6 Energy and Utilities             

                                6.6.7 Market Size Estimations & Forecasts (2019-2024)   

                                6.6.8 Y-o-Y Growth Rate Analysis              

                                6.6.9 Market Attractiveness Index           

7. Geographical Landscape                                         

                7.1 Global Identity Governance and Administration Market, by Region                    

                7.2 North America - Market Analysis (2018 - 2024)                            

                                7.2.1 By Country              



                                7.2.2 By Component      

                                7.2.3 By Application Area             

                                7.2.4 By Tokenization Technique              

                                7.2.5 By Deployment Mode        

                                7.2.6 By Organization Size           

                                7.2.7 By Vertical               

                7.3 Europe                         

                                7.3.1 By Country              






                                       Rest of Europe

                                7.3.2 By Component      

                                7.3.3 By Application Area             

                                7.3.4 By Tokenization Technique              

                                7.3.5 By Deployment Mode        

                                7.3.6 By Organization Size           

                                7.3.7 By Vertical               

                7.4 Asia Pacific                  

                                7.4.1 By Country              




                                       South Korea

                                       South East Asia

                                       Australia & NZ

                                       Rest of Asia-Pacific

                                7.4.2 By Component      

                                7.4.3 By Application Area             

                                7.4.4 By Tokenization Technique              

                                7.4.5 By Deployment Mode        

                                7.4.6 By Organization Size           

                                7.4.7 By Vertical               

                7.5 Latin America                            

                                7.5.1 By Country              




                                       Rest of Latin America

                                7.5.2 By Component      

                                7.5.3 By Application Area             

                                7.5.4 By Tokenization Technique              

                                7.5.5 By Deployment Mode        

                                7.5.6 By Organization Size           

                                7.5.7 By Vertical               

                7.6 Middle East and Africa                           

                                7.6.1 By Country              

                                       Middle East


                                7.6.2 By Component      

                                7.6.3 By Application Area             

                                7.6.4 By Tokenization Technique              

                                7.6.5 By Deployment Mode        

                                7.6.6 By Organization Size           

                                7.6.7 By Vertical               

8. Key Player Analysis                                    

                8.1 Mastercard                

                                8.1.1 Business Description           

                                8.1.2 Products/Service 

                                8.1.3 Financials 

                                8.1.4 SWOT Analysis      

                                8.1.5 Recent Developments       

                                8.1.6 Analyst Overview 

                8.2 Visa               

                8.3 Fiserv                            

                8.4 Micro Focu                 

                8.5 American Express                    

                8.6 TokenEx                      

                8.7 MeaWallet                 

9. Market Outlook & Investment Opportunities                                 


                List of Tables                     

                List of Figures                   


  • Global, regional and country-level analysis and forecasts of the study market; providing Insights on the major countries/regions in which this industry is blooming and to also identify the regions that are still untapped
  • Segment-level analysis in terms of Component, Application Area, Tokenization Technique, Deployment Mode, Organization Size, Vertical along with market size forecasts and estimations to detect key areas of industry growth in detail
  • Identification of key drivers, restraints, opportunities, and challenges (DROC) in the market and their impact on shifting market dynamics
  • Study of the effect of exogenous and endogenous factors that affect the global market; which includes broadly demographic, economics, and political, among other macro-environmental factors presented in an extensive PESTLE Analysis
  • Study the microenvironment factors that determine the overall profitability of an Industry, using Porter’s five forces analysis for analysing the level of competition and business strategy development
  • A comprehensive list of key market players along with their product portfolio, current strategic interests, key financial information, legal issues, SWOT analysis and analyst overview to study and sustain the market environment
  • Competitive landscape analysis listing out the mergers, acquisitions, collaborations in the field along with new product launches, comparative financial studies and recent developments in the market by the major companies
  • An executive summary, abridging the entire report in such a way that decision-making personnel can rapidly become acquainted with background information, concise analysis and main conclusions
  • Expertly devised analyst overview along with Investment opportunities to provide both individuals and organizations a strong financial foothold in the market.
  1. Global Tokenization Market By Region, From 2020-2025 ( USD Billion )
  2. Global Tokenization Market By Component, From 2020-2025 ( USD Billion )
  3. Global Solutions Market By Region, From 2020-2025 ( USD Billion )
  4. Global Services Market By Region, From 2020-2025 ( USD Billion )
  5. Global Tokenization Market By Application Area, From 2020-2025 ( USD Billion )
  6. Global Payment Security Market By Region, From 2020-2025 ( USD Billion )
  7. Global User Authentication Market By Region, From 2020-2025 ( USD Billion )
  8. Global Compliance Management Market By Region, From 2020-2025 ( USD Billion )
  9. Global Tokenization Market By Tokenization Technique, From 2020-2025 ( USD Billion )
  10. Global API-Based Market By Region, From 2020-2025 ( USD Billion )
  11. Global Gateway-Based Market By Region, From 2020-2025 ( USD Billion )
  12. Global Tokenization Market By Deployment Mode, From 2020-2025 ( USD Billion )
  13. Global Cloud Market By Region, From 2020-2025 ( USD Billion )
  14. Global On-Premises Market By Region, From 2020-2025 ( USD Billion )
  15. Global Tokenization Market By Organization Size, From 2020-2025 ( USD Billion )
  16. Global SMEs Market By Region, From 2020-2025 ( USD Billion )
  17. Global Large Enterprises Market By Region, From 2020-2025 ( USD Billion )
  18. Global Tokenization Market By Vertical, From 2020-2025 ( USD Billion )
  19. Global BFSI Market By Region, From 2020-2025 ( USD Billion )
  20. Global Healthcare Market By Region, From 2020-2025 ( USD Billion )
  21. Global IT and Ites Market By Region, From 2020-2025 ( USD Billion )
  22. Global Government Market By Region, From 2020-2025 ( USD Billion )
  23. Global Retail and eCommerce Market By Region, From 2020-2025 ( USD Billion )
  24. Global Energy and Utilities Market By Region, From 2020-2025 ( USD Billion )

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