Passwordless Authentication for E-Commerce: Enhancing Customer Trust and Security

Passwordless authentication is emerging as a crucial strategy for e-commerce businesses. By eliminating the need for traditional passwords, passwordless authentication enhances security, improves user experience, and drives customer loyalty.
Passwordless Authentication
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September 6, 2024
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2 min read

E-commerce is easily one of the most scalable models in this day and age, however with stiff competition - reputation is everything. And also, while there are several different types of e-commerce businesses one thing that never changes is how important user experience is.

Alongside page speed, category page optimization, and your product descriptions - trust is one ranking factor that Google measures through time spent on the page. Quick yet safe transactions are one thing people always gravitate towards with it comes to trust worthy websites - it’s a no-brainer. 

So although it may not seem like an immediate need and you could be skeptical, in this article, we’re going to show you why it's a lot more necessary than you think. 

What is Passwordless Authentication in E-commerce?

In e-commerce, passwordless authentication can be used to login on to the e-commerce store management platform and server accessibility. However, it can also be used by customers to log into their store account easily and securely improving their user experience.

Although this may seem like an extra, this can help create a more customizable experience and better security for the store. Aside from this, it also reduces the overall password fatigue users may experience when remembering a password they only use periodically.

Types of Passwordless Authentication for E-commerce Platforms

For e-commerce platform stores, Passwordless authentication for e-commerce platforms comes in several forms, each offering unique benefits. Biometric authentication, such as fingerprint scans or facial recognition is both secure and quick.

Single sign-on (SSO) solutions allow users to access multiple services with one authentication, streamlining the process across various platforms. Aside from this, push notifications to mobile devices offer another secure method, where users confirm their identity through a trusted app. 

4 Reasons You Should Passwordless Authentication For E-Commerce Businesses

  1. Phishing Prevention
  • Eliminate Password-Based Attacks: Passwordless authentication removes the primary target of phishing attacks — passwords. By eliminating passwords, attackers cannot steal or exploit them, making phishing attempts significantly less effective.
  • Secure Access with Biometric or One-Time Tokens: Reduce the risk of compromised credentials with stronger authentication methods. These methods provide an extra layer of security by using unique data or temporary codes, which are much harder for attackers to intercept.

  • Enhanced Email Security: No need for users to click on phishing links to reset or recover passwords. This reduces the chance of falling victim to email-based phishing scams, as users no longer rely on email for password recovery
  1. Better Security Against Identity Theft 
  • Biometric Data Cannot Be Shared or Stolen: Biometric traits like fingerprints or facial recognition offer a unique and secure way to authenticate users. These traits are tied to the individual and cannot be duplicated or shared, reducing the likelihood of unauthorized access.

  • Stronger Protection for Personal Data: Passwordless authentication significantly reduces the risk of account takeovers and identity theft. By removing the use of passwords, attackers have fewer opportunities to exploit weak credentials or perform identity-based attacks.

  • Advanced Encryption: Passwordless systems often utilize encryption protocols that further protect user identities. The combination of strong encryption and secure authentication methods ensures data is protected during transmission and storage.
  1. Lower Maintenance Costs
  • Reduced Password Reset Requests:
    Eliminating passwords reduces the need for customer support and IT involvement in password recovery. This decreases operational costs while improving efficiency, as fewer resources are spent on managing forgotten passwords.

  • Lower Security Overheads:
    Passwordless authentication reduces the need for frequent security updates and patches for password vulnerabilities. Organizations can save on the time and expenses of constantly securing password-based systems against breaches.

  • Automated Account Management:
    Less reliance on human intervention for managing and securing accounts translates to long-term savings. Automation simplifies the process, allowing for seamless onboarding and offboarding without manual oversight.
  1. Better Conversion Rates
  • Frictionless Login Experience: Customers can log in faster, leading to a smoother checkout process and fewer abandoned carts. The seamless experience encourages users to complete their purchases without interruptions or frustrations associated with password management.
  • Reduce Cart Abandonment: By eliminating password barriers, businesses can encourage customers to complete their purchases. Without the hassle of creating or remembering passwords, users are more likely to finish their transactions, improving overall conversion rates.
  • Instant Authentication: With passwordless methods like biometrics, users can verify their identity immediately, improving satisfaction and boosting sales. Quick and secure authentication creates a more positive user experience, leading to higher customer retention and loyalty.

Is Using Passwordless Authentication in E-commerce Worth It for Your Businesses?

Passwordless authentication eliminates the hassle of remembering complex passwords, reducing cart abandonment and boosting conversion rates. Leveraging biometrics, magic links, or hardware tokens, it enhances security while simplifying the user experience.

While initial implementation might require some investment, the long-term benefits in terms of security, user satisfaction, and operational efficiency make passwordless authentication a worthwhile strategy for forward-thinking e-commerce platforms. Also if you use the right passwordless authentication software it can be quite reasonably priced.

FAQs for Passwordless Authentication E-commerce

What is passwordless authentication, and how does it work on e-commerce platforms?

Passwordless authentication allows users to log in without needing a traditional password. Instead the typical method, users are authenticated using alternative methods like one-time passwords (OTPs), biometric data (fingerprint or face recognition), magic links, or social login.

Is passwordless authentication secure for online shopping?

Yes, passwordless authentication is highly secure for online shopping. It eliminates the risk of weak or reused passwords, which are often targeted by hackers. By using methods like biometrics or one-time codes, passwordless authentication reduces the chances of phishing, credential stuffing, and brute-force attacks.

What are the different types of passwordless authentication available on e-commerce platform?

E-commerce platforms offer several passwordless authentication methods, including one-time passwords (OTPs) sent via SMS or email, magic links that log users in through a click, and biometric authentication like fingerprint or facial recognition. These methods provide both security and convenience, eliminating the need for traditional passwords

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Judah Joel Waragia
Content Architect

Judah Joel Waragia specialize in crafting engaging and informative content on cybersecurity and identity management. With a passion for simplifying complex technical topics, Judah excels at creating content that resonates with both technical and non-technical audiences. His ability to distill complex ideas into clear and concise language makes him a valuable asset to the Infisign team.

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