Passkeys & Conversions: Why Passwordless Logins Lead to Higher Engagement

For years, companies have been struggling with an uphill battle against login friction. Each additional second that the user has to spend attempting to recall a password, reset a password, or go through multi-step authentication raises the risk of drop-off.

The consequence? Lost revenue, abandoned conversions, and irritated users.

That’s where passkeys come in, a passwordless authentication technology that’s changing the game in how individuals interact with websites.

By eliminating the use of traditional passwords, passkeys not only enhance security but also make the login process easier, leading to enhanced engagement and improved conversion rates.

This change is not merely theoretical. Google, Apple, and Microsoft, the tech giants, all support passkeys, integrating them into their ecosystems and advocating for a passwordless future.

But why do passkeys result in greater engagement, and what are the implications for companies wishing to optimize user experience? Let’s dissect it.

The Hidden Cost of Passwords

Before diving into the benefits of passkeys, one should understand the problem they are solving. Traditional passwords are a source of ongoing tension:

• Forgotten Passwords: A staggering 78% of users have reset a password over the last 90 days. Each reset is a potential lost user.
• Complexity Issues: Secure passwords are difficult to remember, so they get reused and create security holes.
• Slow Logins: Standard login flows take 10-15 seconds, introducing unnecessary friction into the user experience.

For companies, that friction means decreased conversion rates, elevated support costs, and a higher likelihood of cart abandonment. Today’s consumers anticipate frictionless experiences, if logging in is not convenient, they will not think twice about abandoning ship.

Passkeys: A Frictionless Alternative

Passkeys remedy these pain points by enabling users to sign in with biometric authentication (Face ID, fingerprint), device-based authentication, or passwordless authentication through a cloud key. The outcome is a split-second and ultra-secure sign-in experience.

Here’s why passkeys are a conversion and engagement game-changer:

Faster Access = Greater Engagement

When users can sign in with a simple tap rather than having to type in complicated passwords, they’re much more likely to finish their journey. That translates to more checkouts, more sign-ups, and ultimately, increased revenue.

Reduces Login Fatigue

Users have too many passwords. By providing passkeys, companies eliminate a huge mental burden, crafting experiences that are smooth and enjoyable.

Stronger Security Without Compromise

Unlike passwords, which can be phished or compromised in data breaches, passkeys are device-bound and secured by biometric authentication. This added security makes users feel more confident, so they remain logged in and interact more often.

Better Mobile Experience

Since mobile is closing in on desktop in most verticals, passkeys provide what an instant-gratification consumer base desires: instant, frictionless access. Gone are the days of battling autofill failures and badly typed passwords on a small screen.

Real-World Impact: Passkeys in Action

Large enterprises that have adopted passkeys indicate a large boost in customer experience.

For example, e-commerce sites that have adopted passkeys have recorded more purchases being made as a result of less friction during checkout.

Likewise, SaaS companies have had better customer retention since customers can log in seamlessly across all devices.

For companies looking to dive into the expanding universe of passwordless authentication, tools such as the passkeys directory provide an updated list of sites that have already implemented the technology.

By getting in front, companies can become leaders in their industries in both security and user experience.

The Future is Passwordless

The move beyond passwords is unavoidable. With Apple, Google, and Microsoft at the forefront, it is only a question of time before passkeys become ubiquitous.

Companies that get ahead of this trend now will have the benefit of being able to provide an easier, more secure experience for their users.

With less friction, greater security, and greater engagement, passkeys aren’t merely a technological improvement, they’re a business growth strategy.

Customer-centric brands always win, and implementing passkey authentication is one of the best decisions a business can make in 2025 and beyond.

Businesses aren’t even considering if they’ll use passkeys, it’s only a question of how quickly.