E-Commerce Authentication: 2026 Benchmark + Best Practices

E-commerce login is broken. Cart abandonment rates sit at 70% and a significant chunk traces back to password friction nobody bothers to measure.

We audited 50 leading B2C brands across the US, UK, Europe and Australia. The results: 18 brands now support passkeys, Amazon has enrolled 320 million users and the rest are stuck on passwords, magic links and expensive SMS codes.

This report documents who's winning, who's falling behind and what the data says about where e-commerce authentication is heading.

Six forces are reshaping how B2C brands handle login:

1. Consumer expectations shaped by Big Tech
2. Rise of FedCM
3. Economic impact of conversion optimization
4. Evolution of fraud and security threats
5. Regulatory pressure in key markets
6. Rise of express checkout orchestration

Consumers in 2026 arrive at e-commerce sites with authentication expectations shaped by Big Tech platforms. Consumers unlock their phones dozens of times daily, mostly using biometrics like Face ID, Touch ID or fingerprint scanning. This has created a fundamental expectation: authentication should be instant, invisible and biometric.

The average internet user manages approximately 168 passwords, yet most reuse the same handful across accounts. Research from Baymard Institute shows that 19% of users abandon checkout when forced to create an account, with forgotten passwords being a major contributor to this friction.

Consumers now trust biometric authentication more than passwords. They understand intuitively that their face or fingerprint is unique, while passwords can be guessed or stolen. This trust, built through billions of successful smartphone unlocks, makes consumers actively seek biometric options when available.

Modern consumers shop across an average of 3.5 devices. When Apple introduced credential syncing via iCloud Keychain and Google followed with its Password Manager synchronization, it set a new baseline expectation: "If I save this on my phone, it should work on my laptop."

Google's FedCM API forces browsers to mediate social logins and change implementations. This is pushing brands toward first-party authentication like passkeys, which don't depend on third-party cookies like in traditional social logins.

Every millisecond of delay and every cognitive hurdle introduced during checkout correlates directly with cart abandonment.

The hidden costs of the password-based model are huge:

• Support Costs: Industry data from Forrester suggests that up to 50% of IT helpdesk tickets are related to password resets. For B2C brands, this translates to millions in expenditure.
• Cart Abandonment: When a returning user is prompted for a password they've forgotten, they abandon at 70.19% according to Baymard Institute.
• SMS Fees: For brands using SMS OTPs for 2FA, telephony costs are significant. "SMS pumping" attacks can drain budgets rapidly.

Passkeys reverse these economic drains. Google's research shows passkey authentication takes 14.9 seconds versus 30.4 seconds for passwords - roughly 2x faster. The FIDO Alliance's 2025 Passkey Index reports a 73% decrease in login time compared to traditional MFA. Early adopters like Kayak reported sign-in time reductions of approximately 50% along with fewer support tickets.

Credential stuffing attacks have become industrialized. According to Akamai's 2024 research, bots compose 42% of overall web traffic, with Imperva reporting that retail experiences 33% bad bot traffic. Account takeovers cost retailers thousands per incident - for a mid-sized retailer experiencing 100 ATOs monthly, this represents millions in annual losses.

Passkeys eliminate common ATO vectors including credential stuffing and phishing since there's no shared secret to steal. SIM swapping and SS7 protocol exploits have made SMS-based 2FA increasingly vulnerable - NIST has explicitly deprecated SMS as a secure authentication method.

While the US market lacks comprehensive e-commerce authentication regulation, key international markets have implemented strict requirements. The Strong Customer Authentication requirements under PSD2 mandate two-factor authentication for online payments over €30. Retailers operating in Europe must implement compliant authentication or face transaction declines. GDPR in Europe, CCPA in California and emerging privacy laws globally are making password databases a liability.

Express checkouts (e.g. Apple Pay, Google Pay, Amazon Pay, PayPal, Shop Pay) are not only payment methods but identity proxies. When a user selects Apple Pay, they bypass the retailer's entire data entry form - billing address, shipping address and contact info are pulled directly from the digital wallet. This "express" layer sits above the traditional checkout flow, often appearing on the Product Detail Page (PDP) or the Cart page.

Passkeys represent a fundamental shift: the private key is protected in the device's secure enclave and bound to the specific domain (e.g. amazon.com), making phishing mathematically impossible. Users authenticate with the same biometric they use to unlock their phone. For deeper technical comparisons, see our guides on passkeys vs 2FA and passkeys vs password managers.

A well-designed e-commerce login page balances security with conversion. Key principles:

• Single primary action: One clear CTA (passkey or password field), not multiple competing options
• Email-first identifier: Detect existing accounts before showing auth options
• Progressive disclosure: Show social login options secondary, not competing with primary flow
• Trust signals: Display SSL certificate badge and security messaging for online shopping verification
• Mobile-first design: 70%+ of e-commerce traffic is mobile; optimize tap targets and biometric prompts
• Error recovery: Clear messaging for failed logins with direct path to password reset or passkey enrollment

E-commerce authentication certificates (SSL/TLS) remain foundational - they encrypt credentials in transit and display the padlock icon that signals trust. But SSL alone doesn't protect against credential stuffing or phishing. Modern e-commerce verification requires layered security: HTTPS + passkeys + device intelligence.

To provide a concrete assessment of the "State of the Nation" for e-commerce login, we conducted an audit of 50 leading B2C brands and marketplaces across four key geographic regions:

• North America
• Europe
• the United Kingdom and
• Asia-Pacific/Australia

Our methodology involved analyzing the login and checkout flows of each brand to identify the presence of five core authentication archetypes:

1. Legacy Standard: Password
2. Social Logins: Google, Facebook, Apple, etc.
3. Multi-Factor Authentication (MFA): SMS OTP, Authenticator Apps, Email OTP
4. Passkeys: Phishing-resistant, passwordless authentication

The following data presents a snapshot of the industry in 2026.

The following table provides a comprehensive view of checkout friction points, payment methods and session persistence strategies. This data reveals how brands balance conversion optimization (guest checkout, express payments) with data capture (account requirements, loyalty programs).

This section examines how different retail sectors approach authentication.

The sportswear sector is characterized by high brand loyalty, frequent repeat purchases and "hype" drops that require sophisticated bot mitigation.

Checkout Philosophy: Nike operates a "Member-First" ecosystem. The brand balances the exclusivity of sneaker releases (which require strict authentication via SNKRS) with the accessibility of general sportswear for the casual consumer. Despite being a digital innovator, Nike's login flow remains heavily dependent on standard passwords and social login. Their strategy relies on the "Nike Member" ecosystem to keep users logged in persistently via their apps (SNKRS, Nike App), effectively bypassing the login friction through long-lived sessions rather than improved authentication methods.

Guest Checkout & Account Detection: Nike allows guest checkout for standard merchandise. However, the policy contains a significant "soft" barrier related to shipping costs. Guest orders typically require a higher spend threshold (e.g. $75+) to qualify for free shipping, whereas logged-in Members often receive free shipping at lower thresholds or unconditionally. This pricing strategy effectively monetizes the friction of remaining a guest.

Regarding account detection, Nike's system is careful. If a user attempts to check out as a guest using an email address already associated with a Nike Member profile, the system will flag this "email already in use" state. The user is typically prompted to sign in to access their saved payment methods and shipping benefits. This prevents the creation of duplicate accounts and ensures that "Member Days" or exclusive access rights are correctly applied.

Checkout Philosophy: As a digitally native vertical brand (DNVB) operating on the Shopify Plus platform, Gymshark's checkout is optimized for mobile speed and high-velocity launches.

Guest Checkout & Account Detection: Guest checkout is standard and highly streamlined. The brand does not force account creation, understanding that impulse purchases during influencer-led drops are time-sensitive.

This sector is defined by low margins, high volume and high return rates. The checkout process is often designed to mitigate returns (by forcing accounts to track behavior) while maintaining the velocity required for "haul" culture.

Checkout Philosophy: ASOS represents a great case study in checkout psychology. Historically, ASOS famously removed the mandatory account creation barrier in 2010, which initially spiked conversions. However, recent iterations of their platform have swung back toward a "forced" model.

Guest Checkout & Account Detection: Current analysis indicates that ASOS has effectively deprecated true "Guest Checkout" in many regions. Users are almost invariably steered toward creating an account or signing in via social media. The "New to ASOS" flow functions as account creation during checkout.

This strict account enforcement allows ASOS to manage their "Premier Delivery" subscription and track serial returners. Account detection is absolute. You cannot proceed with an existing email without authenticating. If an email matches, the user is blocked from proceeding until they log in.

Checkout Philosophy: Shein is an aggressive, data-first platform. The checkout flow is designed to gamify the shopping experience (points, coupons), which strictly requires a persistent identity.

Guest Checkout & Account Detection: Shein generally does not allow guest checkout in most markets. Instead, users are hit with a registration wall immediately upon checkout. Because the user is forced to authenticate or register before reaching the payment stage, account detection happens upstream at the login/registration gate. This allows Shein to serve personalized recommendations and coupons aggressively, which are tied to the user profile.

Checkout Philosophy: As Europe's leading fashion platform, Zalando operates with a focus on trust and regional payment preferences, specifically the German preference for "Rechnung" (Invoice). Zalando, facing the strict requirements of SCA for its payment processing, has implemented a robust MFA system.

Guest Checkout & Account Detection: Zalando generally requires an account. The business model relies heavily on "Invoice" payments (buy now, pay later via bank transfer), which requires a verified identity and credit check, making anonymous guest checkout operationally difficult.

If a user attempts to check out, they are funneled into a login/registration flow. Account detection is immediate; the system checks the email and prompts for a password if the user exists.

This sector relies on high replenishment rates (repeat purchases) and personalized recommendations, driving a need for account retention.

Checkout Philosophy: Sephora's "Beauty Insider" program is the core of its business, yet the retailer maintains a high-functioning guest checkout to capture casual shoppers.

Guest Checkout & Account Detection: Sephora offers a clear "Checkout as Guest" option.

If a user enters an email associated with a Beauty Insider account during guest checkout, Sephora often prompts the user to sign in to earn points. However, they generally allow the user to proceed as a guest if they refuse, prioritizing the sale over the data point, though this means missing out on loyalty rewards.

Post-purchase, Sephora excels at the "Claim Account" flow, asking guest users to create a password to save the order they just placed.

This sector often involves high-ticket items (furniture, mattresses) or recurring needs (pet food, meal kits), influencing checkout design.

Checkout Philosophy: Wayfair sells high-ticket, logistical-heavy items (furniture), which necessitates precise tracking and communication.

Guest Checkout & Account Detection: Wayfair historically does not offer a traditional guest checkout. The flow typically asks for an email address first.

This section examines how major retailers and innovative brands are pioneering new authentication approaches.

Amazon's implementation of passkeys is the single most significant development in e-commerce authentication this decade. With over 320 million customers enrolled, Amazon has moved beyond the pilot phase into mass adoption. Their implementation is instructive: passkeys are now the default sign-in option on mobile for enrolled users. The UX flow is designed to be unobtrusive, nudging users within the "Login & Security" settings rather than interrupting the checkout flow.

However, Amazon's scale also highlights the challenges of legacy debt. The platform's backend complexity is evident in its "redundant verification" steps - users have reported being asked for an OTP even after a successful passkey login, a redundancy that negates the frictionless promise of passkeys. Furthermore, the initial lack of support for native apps (like Prime Video) created a disjointed experience, proving that even for tech giants, unifying identity across web and native platforms is a formidable engineering challenge.

Walmart has followed Amazon's lead but with a distinct emphasis on privacy communication. Their passkey rollout explicitly clarifies that biometric data (face scans, fingerprints) is stored only on the user's device and never transmitted to Walmart's servers. This messaging is crucial in the US market, where consumer trust in data handling is fragile. Walmart also differentiates between "Buyer" and "Seller" authentication. While buyers get the friction-free passkey experience, the "Walmart Seller Center" enforces strict 2-step verification using authenticator apps or SMS. This bifurcation acknowledges the different risk profiles: a buyer account takeover leads to fraudulent purchases, but a seller account takeover can lead to massive supply chain fraud and payout theft.

Coupang operates in a unique regulatory environment where online anonymity is virtually non-existent. Their login system is tightly coupled with mobile phone numbers and often requires verification against the Alien Registration Card (ARC) or resident ID. This high-friction setup is accepted by consumers because it is the national norm and effectively eliminates anonymous fraud. However, it creates a massive barrier to entry for international customers or those without local documentation. After massive data breaches in 2025, Coupang has announced to launch passkeys in the first half of 2026.

The Iconic provides a cautionary tale about reactive security. Their rollout of MFA (SMS and Authenticator App) appears to have been a reactive measure following incidents of credential stuffing and fraudulent purchases. The consumer sentiment around this rollout was mixed. While users demanded security, the sudden introduction of friction was jarring. This highlights the danger of treating authentication as an afterthought: when security is applied as a "patch" rather than an architectural feature (like passkeys), it almost always comes at the cost of user experience.

VicRoads partnered with Corbado to achieve an 80%+ passkey activation rate on mobile devices. If citizens can easily adopt passkeys to renew a driver's license, the barrier for e-commerce adoption is purely imaginary. See our full VicRoads case study.

The following showcases how leading retailers have implemented passkey authentication.

Amazon's passkey rollout is the largest in e-commerce history, with over 320 million customers enrolled. Passkeys are now the default sign-in option on mobile.

eBay offers passkeys across web and mobile apps, integrating seamlessly with their existing Google, Facebook and Apple social login options.

Target rolled out passkeys as part of their Circle loyalty program modernization.

Best Buy implemented passkeys to reduce friction for high-value electronics purchases. The feature is prominently offered during account creation and in the "Account Settings" security section.

The Home Depot's passkey implementation offers a rather unusual passkey creation experience (see screenshot).

Costco offers passkeys alongside their traditional password and email OTP options. The membership-based model makes passkeys particularly valuable for reducing login friction for returning members.

Lululemon's passkey rollout targets their highly engaged mobile-first customer base. The athletic apparel brand uses passkeys to streamline repeat purchases and loyalty program access.

Uber Eats uses passkeys as the primary authentication method, making it one of the most aggressive passkey-first implementations in the market. This reduces SMS OTP costs at scale across millions of daily orders.

Apple's own retail store naturally showcases passkey authentication via Apple ID. The seamless integration with Face ID and Touch ID serves as a reference implementation for other retailers.

Allegro, Poland's largest e-commerce platform, offers passkeys alongside biometric authentication in their mobile app. This positions them as a passkey leader in the Central European market.

A critical insight from our research is the convergence of app and web experiences. Brands like Sephora and eBay are leading a trend where the distinction between "App Login" and "Web Login" is vanishing.

The WebAuthn standard (which passkeys are based on) now allows the same biometric experience from native apps to exist on the open web. B2C brands no longer need to force users to download a heavy native app just to get a frictionless login. This is a game-changer for Customer Acquisition Costs (CAC). Driving a user to a website is significantly cheaper than driving an app install. By implementing passkeys on the web, brands can offer the "premium" app-like experience to the casual web visitor, increasing the likelihood of that first conversion.

What this means for user retention with passkeys can be read in our article here.

A massive segment of B2C brands (Gymshark, Allbirds, Culture Kings) runs on Shopify. Shop Pay has trained millions of consumers to expect: Enter Email → Receive SMS code → Logged In. This relies heavily on SMS, which incurs costs and security risks. Shopify's active migration toward passkeys will likely happen invisibly: one day, the prompt will switch from "Enter the code" to "Scan your face," upgrading millions of B2C storefronts overnight.

The "Remember Me" checkbox is a standard feature across many analyzed shops. However, its function has evolved from a simple cookie to a sophisticated identity token:

• Traditional: Sets a persistent cookie (usually 30 days) that keeps the user logged in.
• Modern (Shopify/Shop Pay): For brands like Allbirds, Gymshark, Culture Kings and Glossier, "Remember Me" is effectively replaced or augmented by Shop Pay. When a user checks "Save my information for a faster checkout," they are opting into the Shop Pay network. Future visits to any Shopify store will trigger an SMS OTP (One-Time Password) for authentication, bypassing the need for a store-specific password. This is a federated "Remember Me" that transcends the individual retailer.
• Amazon Pay: Some retailers utilize Amazon Pay, which leverages the "Keep me signed in" functionality of the Amazon ecosystem, allowing users to inherit their Amazon session for payment.

The research highlights the dominance of Apple Pay, Google Pay and PayPal as universal "Express" options:

• Bypassing the Form: On mobile, selecting Apple Pay skips the address entry entirely.
• Implication: For retailers, this reduces the collection of auxiliary data (like phone numbers or birthdates) unless explicitly requested from the wallet provider. This is a trade-off: higher conversion (speed) for less rich customer data. However, the conversion lift from removing form fields on mobile devices is often considered worth the data sacrifice.

The almost universal adoption of Buy Now Pay Later (BNPL), e.g. Klarna, Afterpay, Zip, Affirm, Koin or also PayPal with own offerings, indicates that checkout is no longer just about logistics. Instead it's seen as a financial instrument. The checkout form must now act as a credit application, identity verification and shipping manifesto simultaneously.

Understanding the nuances of guest checkout and express payment methods is crucial for e-commerce success. This section explores how different approaches impact conversion, data collection and customer lifetime value.

Guest checkout represents the ultimate friction reducer - no password, no account, just a transaction. However, our analysis reveals three distinct approaches:

Brands like Nike, Zara and Sephora offer true guest checkout where users can complete purchases with just an email address. The trade-off is clear: eliminating forced account creation prevents the 19% abandonment rate associated with it, but results in lower customer lifetime value due to fragmented data.

Shein, Wayfair and ASOS have largely eliminated guest checkout, forcing account creation before purchase. This strategy banks on product uniqueness or price advantage to overcome the friction. The result: better data integrity and loyalty program engagement, but higher cart abandonment for first-time buyers.

Retailers like Target and H&M employ a middle ground: guest checkout is available but heavily incentivized against through free shipping thresholds, loyalty points or member-only pricing. Post-purchase, they aggressively prompt guests to "claim" their order by creating a password.

Express checkout methods have evolved from simple payment accelerators to complete identity systems. Our research identifies four categories:

Present on 90% of analyzed sites, digital wallets bypass the entire checkout form. Research from Goldman Sachs indicates that Apple Pay can double online shoppers' conversion rates, while BigCommerce found that merchants offering Apple Pay or PayPal see checkout conversion rates increase from 52.9% to 58.9%. The key insight: these wallets carry not just payment credentials but complete shipping and billing information, eliminating 15-20 form fields.

Shop Pay (Shopify ecosystem) and PayPal act as identity providers across multiple merchants. Shop Pay's network effect is particularly powerful - once enrolled at any Shopify store, users can checkout with just an SMS OTP at millions of other stores. This creates a "guest checkout with memory" experience.

Key Statistics:

• Shop Pay conversion rates are 1.72x higher than regular checkout according to Shopify's research
• PayPal is trusted by 83% of UK consumers and 36% of European consumers prefer it over banks for integrated payment apps according to FCA and PYMNTS research

BNPL isn't just about payment flexibility - it's an authentication bypass. When selecting Klarna or Afterpay, users often authenticate with the BNPL provider, not the merchant. This creates interesting dynamics:

• Klarna requires phone number verification, creating a soft identity layer
• Afterpay uses email and SMS verification, building a cross-merchant profile
• Affirm performs soft credit checks, requiring more identity verification

The newest trend is direct checkout through social platforms. Instagram Checkout and TikTok Shop keep users within the social app, using the platform's existing authentication. This eliminates not just password friction but the entire concept of "visiting" an e-commerce site.

For B2C brands looking at the Amazon experience and wondering "How do we build this?", the answer is often complex. Building raw passkey support is difficult due to device fragmentation (Android vs. iOS, Chrome vs. Safari, desktop vs. mobile) and the complexity of managing fallback flows for users without biometric devices. But the bigger challenge isn't implementation - it's measuring what's actually happening in your authentication funnel.

Corbado acts as the analytics tool for this transition, bridging the gap between legacy systems and the passwordless future - with deep analytics to decrease drop-off from day one.

Most e-commerce brands have sophisticated checkout analytics but a complete blind spot at the login screen. Corbado's analytics layer provides granular visibility into every step of the authentication journey:

• Funnel Analytics: Track conversion rates at each authentication step - from "login page loaded" to "passkey prompt shown" to "biometric completed" to "session established." Identify exactly where users abandon the flow.
• Device-Level Insights: Understand which device/browser combinations have the highest drop-off rates. If Android Chrome users are failing at 3x the rate of iOS Safari, you'll know immediately.
• Error Attribution: When authentication fails, Corbado captures the specific failure reason (user cancelled, biometric timeout, credential not found, network error). This transforms vague "login issues" tickets into actionable data.

The "Passkey Intelligence" engine doesn't just detect device capability. It feeds a continuous optimization loop:

• A/B Testing Framework: Test different nudge placements, copy variations and timing strategies. Does prompting for passkey creation post-checkout convert better than post-login? Corbado's analytics will tell you.
• Cohort Analysis: Segment users by passkey adoption status and track downstream metrics: Do passkey users have higher repeat purchase rates? Lower cart abandonment? Higher average order value? These correlations justify further investment in passwordless.
• Real-Time Dashboards: Monitor authentication health during high-traffic events (Black Friday, product drops). See login success rates, average authentication time and passkey adoption in real-time.

Authentication doesn't exist in isolation - it's the gateway to your checkout funnel. Corbado's analytics connect the dots:

• Cross-Funnel Attribution: Link authentication method to checkout completion. If users who authenticate with passkeys complete checkout at 15% higher rates than password users, that's a direct revenue signal.
• Drop-off Recovery: Identify users who abandoned at the password reset step and target them with passkey enrollment campaigns. Turn your biggest friction point into an adoption opportunity.
• Session Quality Metrics: Track not just "did they log in" but "how long did it take" and "did they need fallback methods." Session quality correlates directly with purchase intent.

Position passkey analytics as an operations and observability investment rather than a pure product investment. When authentication issues arise - and they will - the ability to quickly identify root causes has immediate ROI:

• Incident Detection: Automated alerts when authentication success rates drop below thresholds. Catch issues before they become support ticket floods.
• Root Cause Analysis: Drill down from "logins are failing" to "iOS 17.2 users on Safari are seeing credential lookup failures" in minutes, not hours.
• Capacity Planning: Understand authentication load patterns to provision infrastructure appropriately. Avoid the catastrophic scenario of auth server failures during peak traffic.

The research is conclusive: the era of the password in e-commerce is drawing to a close. The convergence of regulatory pressure, technical obsolescence (third-party cookie deprecation, FedCM) and the sheer ROI of friction reduction is driving the market inextricably toward passkeys (as the most secure and user-friendly passwordless authentication method).

The "Authentication Matrix" reveals a split market. The "haves" - Amazon, eBay and forward-thinking smaller brands - are building a competitive moat based on user experience. They are eliminating the login barrier, making it easier for customers to spend money. The "have-nots" - still relying on clunky passwords, insecure magic links and expensive SMS codes - are bleeding conversion at the very first step of the funnel.

The e-commerce checkout landscape of 2026 is defined by a tension between identity and velocity. Retailers are moving away from the binary choice of "Guest vs. Account" toward a spectrum of identity solutions that attempt to have it both ways:

1. Identity Orchestration: Platforms like Shop Pay are winning by federating identity. They allow users to be "guests" to the brand but "known" to the network, providing the speed of guest checkout with the data integrity of a logged-in user.

2. Death of the Password: The adoption of passkeys by Target or Lululemon signals the end of the traditional login form. This technology solves the security-convenience paradox and will likely become the standard for "forced account" retailers.

3. Financial Integration: BNPL providers (Klarna, Afterpay) have transformed checkout into an identity layer. Users authenticate with the BNPL provider rather than the merchant, creating yet another federated authentication pathway that bypasses traditional login entirely.

The winners of 2026 will not be the brands with the strictest password policies, but those that make security invisible.

Strategic Recommendations for B2C Brands:

1. Don't wait for Fraud: Some brands learned the hard way that reactive security kills UX. Implementing passkeys proactively prevents fraud and improves UX simultaneously.

2. Audit your Flows for FedCM: Check if your social login implementation relies on legacy third-party cookie checks. If so, Google's FedCM updates will break your checkout flow in the coming months.

3. Invest in Authentication Observability: Most brands have sophisticated checkout analytics but zero visibility into login drop-off. Use Corbado's authentication analytics to measure where users abandon the login flow, which devices have the highest failure rates and how authentication method correlates with conversion. You can't optimize what you can't measure.

4. Adopt a Hybrid Strategy: You do not need to kill passwords today. Use Corbado to add passkeys as a parallel option alongside passwords. Watch your users naturally migrate to the easier method over time, reducing your reliance on legacy auth organically - while measuring every step of the transition.