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Can Passkeys Replace Third-Party Cookies?

The era of cookie-based personalization is being challenged by tighter data privacy regulations. To continue providing a seamless and personalized customer experience, companies are shifting their focus towards passkeys. These are digital credentials, linked to user accounts, that function across platforms like Apple, Google, and Microsoft. Passkeys promise to simplify logins, reduce password-related issues, enhance re-login rates, and contribute to sustained customer engagement.

Why Are Cookies Becoming Less Preferred?

Previously, B2C companies heavily relied on cookies for personalizing user experiences and facilitating e-commerce transactions. However, stricter data privacy regulations and tech giants like Apple and Google advocating for less reliance on cookies are pushing companies to find alternatives for customer engagement.

The Advent of Passkeys: A New Method for Re-engagement

As cookies face more restrictions, passkeys are emerging as an innovative way to maintain customer engagement. Stored in users' iCloud Keychain or compatible password manager, passkeys offer cross-device functionality, enabling seamless logins across different platforms. This makes them an attractive alternative to cookies.

1. Passkeys: Revolutionizing the Shopping Experience
Passkeys will ensure a frictionless shopping experience by enabling persistent shopping carts. Users will no longer worry about abandoned shopping carts or unfinished orders, as they can log in effortlessly across devices, significantly reducing cart abandonment rates. This is expected to revolutionize the user experience and improve overall customer satisfaction.

2. The Power of Passkeys in Customer Retention
Passkeys offer more than just convenience; they can also help retain customers. Even if users uninstall an app, their credentials remain synchronized in their keychain unless manually deleted, which is rare. This allows for quick and easy re-login, fostering stronger bonds between customers and brands and enhancing customer retention and loyalty.

3. One-Click Accounts: Streamlining User Sign-Up
With passkeys, account creation becomes a breeze. Users can quickly create accounts using their email addresses and Face ID, encouraging more sign-ups and reducing user churn associated with account creation.

4. Enhancing Re-Login Rates with Passkeys
Passkeys help streamline the login process, eliminating the need for users to remember passwords and reducing the likelihood of password resets. This simplicity increases re-login rates, making it easier for users to re-engage with a platform.

In the evolving digital landscape, the goal is to secure a passkey in your customer's keychain, even if you don't have an app. Passkeys are becoming the new norm for customer re-engagement.

With Corbado's authentication solution that leverages the power of passkeys, you can quickly adopt this technology without worrying about integration or cross-device issues. To discover the full scope of how passkeys can transform your business, check out the complete article on our blog.

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