Passwordless and Cardless Checkout: How Passkeys are Transforming Digital Payments

The challenge for financial institutions is finding the perfect balance between security and simplicity. It is within this landscape that Passkeys are gaining ground.

In e-commerce, every additional step can create a barrier to completing a purchase. Entering card details, remembering passwords, or inputting authentication codes slows down the checkout process and can increase cart abandonment rates.

A New Way to Authenticate Payments

Passkeys serve as an alternative to traditional authentication methods based on passwords and OTPs (One-Time Passwords). The technology leverages cryptographic credentials tied to the user’s device, enabling authentication through native features like facial recognition, fingerprint scanning, or a device PIN.

For the consumer, the process is much simpler: instead of typing a password or fetching an SMS code, they can verify their identity using the biometrics they already use on their device.

This experience can be applied to both Click to Pay flows and Card-on-File payments, adding a robust authentication layer without introducing unnecessary friction.

Less Friction, More Security

The main advantage of Passkeys lies in the combination of convenience and protection.

By eliminating the reliance on traditional passwords, the technology mitigates exposure to risks such as credential theft, phishing, and password reuse. Simultaneously, it keeps authentication seamlessly integrated into the user experience.

The result is a highly fluid payment journey where security occurs naturally, using features the consumer is already familiar with.

Passkeys for Financial Institutions

HST‘s Passkey solution is fully integrated into our Issuer SDK, allowing financial institutions to embed biometric authentication directly into their proprietary apps.

The solution leverages a unified interface across different payment networks and enables the seamless management of device-bound credentials.

As a result, Passkeys can form a core component of a multi-layered authentication strategy, complementing other security technologies deployed by the institution.

The Checkout is Evolving

Consumers already unlock their smartphones with their face or fingerprint. Bringing this seamless experience to the payment moment is a natural step in the evolution of digital channels.

For financial institutions, keeping pace with this shift means rethinking authentication as an integral part of the user experience, without compromising on security.

HST helps financial institutions evolve their digital payment ecosystems with solutions that bridge security, technology, and user experience.

Want to learn more about HST‘s Passkey solution?

Get in touch with our team and discover how to bring simpler, more secure authentication to your digital payments.