Passwordless e-commerce: The customers are ready – are you?

“Passwords? Come on, that’s so yesterday!”

Digital passwords have been around since MIT first introduced them back in 1961. So, it’s been… that’s right—SIXTY-THREE YEARS—that we’ve been relying on passwords to keep our virtual belongings secure. They’ve done a decent job, but let’s be real: with so many people using weak passwords and hackers getting ever better at cracking even the strong ones, it’s clear we need a better solution right now.

Fortunately, we already know what that solution is. Major players like Google, Amazon, and Netflix have jumped on board with it. So, it’s time for other businesses to ditch the old-school passwords and embrace what is called passwordless authentication.

Making sense of passwordless authentication

Before we get into how passwordless authentication can improve both security and the login experience, let’s clarify what the term really means. If you Google it, you'll likely find an explanation that passwordless authentication allows users to log in to services without a password. Not exactly breaking news, huh? So, HOW exactly do you log in if it's not with a password?

The answer lies in using alternative methods like biometric scans (think fingerprints or facial recognition), magic links sent to your email, or one-time codes sent to your phone.

And let’s not forget the increasingly popular passkeys, the new passwordless authentication method that uses pairs of cryptographic keys that are not only more secure than passwords, but also more convenient. With passkeys, you can log in with just a single click or a quick scan of your finger, all while maintaining—and even enhancing—security through measures like encryption. That’s why they’re seen as a better alternative to passwords.

Benefits of passwordless solutions for e-commerce

Passwordless authentication used in the context of e-commerce comes with numerous benefits that fall into three main categories. Each category brings something unique to the table for both businesses and their customers. Let’s break them down one by one, starting with…

Enhanced security

As already mentioned, password alternatives like biometrics or passkeys offer extra security thanks to their design and function. For instance, passkeys use encryption to ensure that during login, when your identity is verified by matching your device’s private key with the public key on the vendor’s server, the process remains secure and is not exposed to third parties.

So, what does this mean in terms of benefits? For users, it means greater peace of mind knowing their online accounts are better protected from cyber threats. For companies, it means a lower risk of data breaches and account takeovers, which helps prevent potential financial or reputational damage from cyber incidents.

Improved user experience

Creating a strong password with at least 16 characters and a mix of letters, numbers, and symbols can be a real hassle. And remembering several of them? Even tougher. While password managers can help, users are still stuck with the task of managing those passwords.

Switching to passwordless logins can make a big difference. With biometric scanners on today’s mobile devices, going passwordless is not just easy—it’s super convenient. This way, customers can get into their accounts with just one click, leaving behind the stress of remembering or managing passwords.

For businesses, adopting passwordless authentication not only improves their user experience but also shows they’re on the cutting edge, offering smarter and more modern solutions than traditional passwords.

Increased conversion rates

For users, going passwordless means saying goodbye to frustrating "wrong password, try again" errors and other obstacles that might make them rethink using a brand’s solution. In today’s fast-paced world, time is precious, and if logging in isn’t secure, smooth, and effortless, users are less likely to engage with the brand.

So, putting it another way: the easier you make it for customers to log in, the more likely they are to stay and complete their purchases instead of ditching their carts. That's why switching to a passwordless system can lead to higher conversion rates and a boost in profits for e-commerce managers.

Examples of passwordless authentication applied in e-commerce

Thanks to organizations like the FIDO Alliance, the adoption of passwordless authentication is gaining momentum. Some of the biggest names in e-commerce, including Amazon, Best Buy, eBay, and Target, are already on board, offering password-free logins to their customers.

It’s clear that the appeal of going passwordless is hard to resist, and more companies are joining in. However, plenty of businesses are still sticking with traditional passwords, possibly because they’re unsure how to implement passwordless authentication in their online stores. Hence, this is what we’re going to cover next.

How to add passwordless authentication when you’re an e-commerce company

Implementing passwordless authentication into your online store can be broken down into three straightforward steps. They are:

1. Choose the right authentication method: When deciding between biometric authentication, passkeys, email-based one-time passwords (OTPs), and other passwordless methods, it’s important to think about what suits your needs the best. The goal is to strike a balance between security and ease of use so that whichever method you pick is both safe and user-friendly for your customers.

2. Carry out the integration: Utilize internal IT resources or bring in external help to program the new passwordless feature into your website or service. The integration process includes setting up communication between the authentication system and your backend, configuring the authentication flow, and making sure user data is handled securely.

3. Test the applied solution: Regular testing will help you identify any potential issues and ensure a smooth experience for your users. Look at factors like how quickly users can authenticate, the success rate of logins, and overall user satisfaction.

Bear in mind that adding passwordless authentication to your online store doesn’t have to be complicated. You can take the traditional route, investing time and resources to carefully plan, integrate, and test the solution on your own. However, you can also opt for a more straightforward and cost-effective approach…

There’s an easier way to introduce passwordless logins in your online store

Have you heard of Authopia by NordPass? It is a tool we developed that allows any organization—whether e-commerce or another industry—to quickly add a passkey widget to their website or service, enhancing their login experience with passwordless authentication.

What makes Authopia stand out is how easy it is to use. First, you get a pre-written code from us, then have someone on your team with basic IT skills implement it. After that, you simply register with Authopia, and you’re good to go. Once registered, your website or service will offer a passkey login option to your customers. The process is quick and efficient, and doesn’t require a huge investment or extra IT help.

So, if you want your e-commerce business to stay at the forefront and offer an enhanced login experience, consider giving Authopia a try.