Passwords are going out of fashion among younger generations around the world as passkeys enable faster and more secure logins without the hassle of remembering, new research shows.
New data from FIDO Alliance shows that password awareness has increased from 39% awareness in 2022 to 57% in 2024.
In addition, companies are losing revenue from the younger generations: 50% of people between 25 and 34 years old abandon at least one purchase per month because they have forgotten their password.
Young people want authentication alternatives
Recent findings from Googling claim passwords are four times easier to use than passwords, making them very attractive to young people who want to quickly log in or make a quick purchase. Passkeys are also phishing-resistant because they are stored on a local device such as a phone, meaning that an account protected by a passkey without that device cannot be accessed by a hacker. They also need the authentication app you use, as well as your chosen verification method, such as a fingerprint or facial scan.
Forgetting a password can quickly ruin an online experience, with more than half (56%) of those surveyed by the FIDO Alliance giving up using an online service because they forgot a password, with this number rising to two-thirds ( 66%) for those under the age of 35.
Password managers already take some of the burden off having to constantly remember passwords, but that doesn’t mean their use isn’t declining. In fact, by 2023, password use has declined daily, with biometric authentication now the most popular login method.
China and India are leading the key revolution, with adoption rates of 80% and 73% respectively, while Britain is third at 66%. The research also indicates that tech-savvy youth are becoming increasingly aware of the cyber threats that affect them personally. 54% of 18-24 year olds and 61% of 25-34 year olds see scams and suspicious messages becoming smarter and more targeted.
“Consumer expectations are changing, and this data should serve as a clear call to action for brands and organizations still dependent on outdated password systems,” said Andrew Shikiar, CEO of FIDO Alliance.
“Consumers are actively seeking and preferring passwordless alternatives when they are available, and brands that don’t adapt are losing patience, money and loyalty – especially among younger generations.”
“If consumers are aware of access keys, they use them. Excitingly, 20% of the world’s 100 largest websites and services already support password keys. As the industry accelerates its efforts to educate and make implementation as simple as possible, we urge more brands to partner with us to make access keys available to consumers. The pace of password implementation and use will continue to accelerate over the next twelve months, and we are committed to helping brands and consumers make this transition,” concludes Shikiar.