The growing need to protect cardholders’ data by following PCI DSS guidelines and increasing payment frauds that need to be prevented are expected to be major drivers of the tokenization market.
The cloud deployment mode is expected to grow at a higher CAGR, as SMEs are rapidly adopting the cost-effective cloud deployment model. This model helps SMEs avoid the costs associated with hardware, software, storage, and technical staff.
The increasing payment security concerns and strict regulatory compliances are some of the key factors expected to fuel the growth of the tokenization market in North America.
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The tokenization solution is a cloud-based and on-premises solution that replaces users’ sensitive information with unique tokens and prevents critical information while transferring through vulnerable networks. It helps lower the PCI DSS compliance burden.
PCI standards forbid the storage of credit card numbers on a retailers Point of Sale (PoS) terminal as well as in databases after payment transactions. To comply with these standards, merchants need to install expensive end-to-end encryption systems or outsource the installation task to tokenization service providers. The tokenization solution providers take the responsibility for keeping cardholders’ data isolated.
The tokenization solution providers take the responsibility for keeping cardholders’ data isolated. With the increasing instances of cyber-attacks, growing IoT, and connected device vulnerabilities, and rising pressure from cybersecurity regulations, the solution segment is expected to garner more revenue during the forecast period.
The increase in the number of IoT and connected devices, and the vulnerabilities associated with them are some of the factors driving the adoption of the tokenization solution and services. The presence of many tokenization vendors and the widespread awareness of the tokenization solution and services are expected to continue to account for the region’s highest market share during the forecast period.