TOKENISATION
The payments industry is undergoing a seismic shift , with innovations in tokenisation , cross-border transactions and real-time payment networks evolving at pace . As businesses and consumers alike adapt to these changes , new opportunities and challenges are emerging in equal measure .
Tokenisation : The key to frictionless payments One new innovation is tokenisation , which has emerged as a gamechanger in the quest for seamless and secure payment flows . By replacing sensitive data with unique identifiers , this technology is revolutionising how businesses handle transactions and store customer information . The global tokenisation market is on a steep growth trajectory , with projections suggesting an expansion from US $ 2.3bn in 2021 to US $ 5.6bn by 2026 . This rapid growth is driven by the technology ’ s ability to simplify compliance , reduce costs and enhance customer experiences .
Anish Kapoor , CEO at AccessPay , says : “ Independent software vendors ( ISVs ) seeking to add payment capabilities to their offerings have traditionally grappled with storing sensitive information . Tokenisation removes this requirement and lowers the barriers to entry .”
For businesses , the benefits of tokenisation are manifold .
Beyond simplifying PCI DSS compliance and reducing regulatory burdens , tokenisation is paving the way for frictionless customer experiences .
One-click transactions and automatic card updates are becoming the norm , potentially boosting conversion rates and fostering customer loyalty .
“ When sensitive data is replaced with a token , we can streamline transactions by eliminating the need for repeated data entry and speeding up the authorisation process ,” adds Gabriel Vieira , VP of Engineering , EMEA at CI & T . “ As a result , tokenisation facilitates quicker , more secure payments and supports seamless features like one-click transactions , ultimately creating a smoother user experience .”
US $ 5.6
130 November 2024