Ditching Passwords Could Unlock a $59 Billion Biometrics Market

Consumers prefer a user experience that is both convenient and secure, even though 68% said they would choose security over convenience. A consistent authentication experience across multiple platforms also creates trust. As businesses look to create more secure and convenient authentication experiences, advanced identity authentication through technology such as biometrics could help meet security and convenience expectations.

Consumers already understand the shortcomings of password authentication, and that is feeding demand for better authentication solutions. Being able to log in without a password was rated just as highly by almost half of respondents as having more detailed information about transaction security, and 61% expressed interest in password alternatives, a share that jumps to 68% among mobile app users.

This edition of the “Digital Identity Tracker®” explores consumer attitudes toward identity authentication and the possibilities offered by forgoing passwords in favor of technologies such as biometrics and passkeys.

Around the Digital Identity Space

A 7% year-over-year rise in cyberattacks has prompted many businesses to boost their security measures. Seventy-nine percent of surveyed United States businesses are using biometric authentication to prevent fraud and improve security for their customers, triple the share that said the same in 2019. Two-factor authentication still leads to more advanced authentication methods and is employed by 91% of respondents, but recent compromises and successful takeovers of accounts secured with two-factor authentication have highlighted the need for more advanced options.

Many of the most popular password choices demonstrate the vulnerabilities introduced when users have to keep track of multiple credentials. An analysis of the most common passwords used for online accounts showed that 45% contained just letters, and 2% even contained the word “password.”

For more on these and other stories, visit the Tracker’s News and Trends section.

Finding the Utility in Authentication Friction

Recent developments, such as the widespread adoption of passkeys by tech giants Microsoft, Google and Apple, have generated excitement about the move away from passwords, but fraud and identity threat industry expert Lenny Gusel warns that this will have little impact on payments without targeted authentication friction at the payment point.

To learn more about how friction can be good for payments, read the Tracker’s Insider POV section.

PYMNTS Intelligence: Winning the Fraud Prevention Arms Race

Businesses are hit from both sides by fraud, impacted not only by the direct costs but also by the knock-on effects of reputational harm and lost profits from false flags. Fraud is also incredibly common, with 97% of global fraud prevention leaders at eCommerce firms saying they experienced fraud within the last two years. Advanced identity authentication could provide a win-win solution, with 70% of surveyed consumers saying advanced identity authentication technologies such as voice recognition and fingerprint scanning actually improve their satisfaction with and trust in a company.

In addition, while 68% of respondents prioritize security over convenience, 39% of consumers said they believe advanced authentication technology would improve their customer experience satisfaction, and 58% said biometric authentication is both faster and more convenient than less secure options such as passwords.

To learn more about the role of advanced identity authentication in the fraud prevention arms race, read the Tracker’s PYMNTS Intelligence.

About the Tracker

The “Digital Identity Tracker®,” a collaboration with Prove, examines the transition from passwords to advanced identity authentication and how consumers’ attitudes and technological advancements will shape that space.