Payment Processors Compete on Checkout With Passkeys

This news highlights a shift in how your customers will authorize payments and financing applications at the point of sale. Major payment processors like PayPal, Shopify, and Stripe are aggressively adopting 'passkeys.' This technology replaces traditional passwords and SMS codes with biometric authentication like FaceID or fingerprint scans. For retailers, this is a major win for conversion rates. Every time a customer has to wait for a text code or remember a password during checkout, there is a chance they will abandon their cart. This friction is even more common when customers are applying for financing or using Buy Now, Pay Later (BNPL) options, which often require extra identity verification. Passkeys make this process nearly instant. The technology is built on FIDO standards, meaning it works across different devices and browsers. Implementing this tech helps protect your business from fraud. Unlike passwords, passkeys are resistant to phishing. They ensure the person clicking 'Buy' is the actual owner of the device. As processors compete to offer the fastest checkout, retailers who adopt these tools will likely see higher completion rates and lower fraud disputes. You should check with your current gateway provider to see how they are integrating passkeys into their checkout flow.

Source: PYMNTS

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