Passkeys are a new industry standard created by the FIDO Alliance and the World Wide Web Consortium that replace passwords with cryptographic key pairs, offering customers a simple and secure way to log in to PayPal based on technology that is resistant to phishing and designed so that there is no shared passkey data between platforms. The new PayPal log in option will first be available to iPhone, iPad, or Mac users on PayPal.com and will expand to additional platforms as those platforms add support for passkeys.
A founding member of the FIDO Alliance, PayPal is one of the first financial services companies to make passkeys widely available to its users. This cutting-edge security standard is significant as passkeys address one of the biggest security problems on the web, which is the weakness of password authentication.
According to the press release, over 2.6 billion records were hacked in 2017 and of these hacks, 81% are estimated to have been caused by password stealing and guessing. Many consumers recycle passwords across online services, which can not only be cumbersome but can also lead consumers to reuse the same, potentially vulnerable passwords across services. Passkeys are designed to replace passwords for an even more seamless and secure login experience with PayPal.
Passkeys will also help more consumers complete their purchases with PayPal, once PayPal users create a passkey, they won't have to remember their password, allowing them to check out with greater ease. According to a recent survey of US consumers, 44% of consumers have abandoned an online purchase because they forgot a password.
Creating and using a passkey with PayPal is an easy process on an Apple device. Once created, passkeys are synced with iCloud Keychain, ensuring a strong, private relationship between a customer and their device, and an easy sign-in experience for PayPal users with devices running iOS 16, iPadOS 16.1, or macOS Ventura.
Once existing customers log in to PayPal with a browser on desktop or mobile web using their existing PayPal credentials such as a username and password, they will have the option to ‘Create a passkey.’ Customers will then be prompted to authenticate with Apple Face ID or Touch ID. Then the passkey will be automatically created, and next time PayPal customers log in, they won't need to use or manage a password again.
If they have devices that don't support passkeys yet, users can still use an iPhone to log in with a PayPal passkey. They simply scan the QR code that will appear after they enter their PayPal User ID.
PayPal passkeys already started rolling out to customers in the US. Passkeys will become available in additional countries early in 2023, and on additional technology platforms as they add support for passkeys.
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