Network Tokenized Transactions to Reach 574 Billion in 2029

A new study by Juniper Research has found that global network tokenized transactions will double by 2029, rising from 283 billion in 2025 to 574 billion in 2029. The valuable role of network tokenization in securing digital payments will drive merchant adoption amidst escalating fraud concerns. Network tokens are virtual representations that replace sensitive card details with tokens issued by card networks.

The report found that network tokenization, through ensuring sensitive card information is protected at every stage of the transaction lifecycle, will significantly reduce fraud rates for eCommerce payments. It is paramount for merchants and payment processors to adopt network tokens as Visa is set to impose stricter global fraud thresholds by January 2026, which will require merchants to reduce fraud or a fee will be imposed.

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 capitalize on. A lucrative opportunity for TSPs involves forming partnerships with new digital wallets to integrate network tokenization, giving them the ability to compete directly with Apple Pay. “Apple’s newfound openness with its NFC capabilities is significantly increasing competition in digital wallets, creating a significant opportunity for TSPs to pursue,” commented research author Lorien Carter.