Passkeys at Checkout: The First Production Conversion Data
Phishing-resistant credentials are quietly outperforming OTP and password flows where they have been deployed.
Passkeys - FIDO2 credentials bound to a device's secure enclave - are starting to ship in checkout flows beyond the wallet vendors themselves. The early production data is consistent: meaningfully higher conversion than OTP, materially lower fraud than passwords, and a recovery story that is finally workable thanks to cross-device sync.
The near-term integration pattern is hybrid: passkeys for the returning-buyer path, OTP as fallback for the long tail of devices and accounts that have not yet enrolled.
The deeper effect is on chargeback economics. Passkey-authenticated transactions carry stronger liability protection under SCA and 3DS frameworks, shifting risk away from merchants in disputed flows.
Sources & References
- Visa - Visa Economic Empowerment Institute
- Mastercard - Newsroom & Research
- Gartner - Banking & Investment Services
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