While passwords may hang on until the last possible asterisk, a new study from the FIDO Alliance tells a truth facing many outdated technologies: as younger customers become less patient with inconvenience, they will turn their attention to brands that keep up with the times.
In the case of cryptography and cybersecurity, that means passkeys. The new key on the block is just two years old, but customer awareness of passkeys has risen by half since 2022. Awareness is driving adoption, as the majority of those familiar with passkeys (62 percent) have made the switch.
“Password usage stagnates as consumers favor alternatives,” says a release noting the findings in FIDO’s fourth annual Online Authentication Barometer. “Waning password patience is costing sales and loyalty, especially among younger consumers – 42 percent of people have abandoned a purchase at least once in the past month because they could not remember their password.” Meanwhile, 56 percent have given up accessing a service online for the same reason.
Many will sympathize with the frustration. They will also recognize the study’s findings on online scams: more than half of consumers reported “an increase in the number of suspicious messages they notice and an increase in scam sophistication, driven by AI.” Unsurprisingly, young people ages 18-43 are more likely than older generations to notice scams getting smarter.
More people choosing biometrics as preferred login experience
So: once again, we hear that passwords are on the wane. FIDO’s study says the number of consumers entering a password manually across use cases decreased from 2023, while biometrics “ranked the authentication method consumers consider the best login experience and the method they consider most secure for the second year running.”
Global demand is part of the equation. Passkeys have seen advanced uptake in high-growth, digitally advanced markets such as China and India, which, according to FIDO, rank top globally with 80 percent and 73 percent enablement, respectively. The UK is third, with adoption levels at 66 percent.
FIDO Alliance CEO Andrew Shikiar says the data is a clear sign that consumer expectations are changing. “Consumers are actively seeking out and prefer passwordless alternatives when available, and brands that fail to adapt are losing patience, money, and loyalty – especially among younger generations.”
“As the industry accelerates its efforts toward education and making deployment as simple as possible, we urge more brands to work with us to make passkeys available for consumers. The pace of passkey deployment and usage is set to accelerate even more in the next twelve months, and we are eager to help brands and consumers alike make the shift.”
Windows 11 preview has simplified authentication with passkeys
FIDO reports that some 20 percent of the world’s top 100 websites and services already offer support for passkeys. Among them is Microsoft, which has announced an insider preview of Windows 11 Build 22635.4440, available through its Beta Channel. Among the key features is improved authentication flows through Windows Hello with passkeys.
A blog on the Windows 11 release says Microsoft “redesigned Windows security credential user experiences for passkey creating a cleaner experience that supports secured and quick authentication. Users will now be able to switch between authentication options and select passkey/devices more intuitively.”
Microsoft faces the daunting task of trying to get passkeys working for a billion users. The improvements to passkey authentication in Windows 11 beta, which prioritize simplicity. The move will likely help Microsoft as it moves toward a future in which passwords are a thing of the past.
Article Topics
biometric authentication | biometrics | consumer adoption | FIDO Alliance | Microsoft | passkeys | passwordless authentication | Windows Hello
