Passkey Login Optimization

Passkey Authentication Optimization 

Improving login success while reducing reliance on SMS OTP

Background

Passkey enables users to log in without entering passwords or OTP, using biometrics and device authentication.

Case

Passkey Adoption Designing a Passwordless Future

 

Challenge

Passwords are one of the biggest friction points in digital products.
They are hard to remember, easy to compromise, and costly to maintain.

  • At Paidy, this created two critical problems:

    • High friction during login → drop-off & failed authentication

    • Heavy reliance on SMS OTP → operational cost and poor UX

    The opportunity was clear:
    Replace passwords with a faster, more secure, and scalable authentication system

Key Insight

Passkeys are not just a feature — they require a mental model shift.

Users are used to passwords.
Introducing passkeys means changing behavior, not just UI.

The real challenge was:
How might we introduce a new authentication method without increasing confusion or drop-off?

Strategy

1. Introduce at the right moment

Instead of forcing users upfront, passkeys are introduced when users are already thinking about authentication.

2. Bridge the mental model gap

Passkeys are unfamiliar to most users.

Design approach:

  • Explain “what” and “why” clearly

  • Guide users step-by-step

  • Keep interaction aligned with familiar patterns

This follows passkey UX principles — connecting new concepts with familiar flows improves adoption

Key Design Decisions

  • Prioritized passkey after successful login (high intent moment)

  • Designed progressive onboarding instead of forced setup

  • Balanced security requirements with simplicity

  • Collaborated closely with engineering to align with platform constraints

Impact

  • +61% adoption of Passkey login

  • Reduced reliance on SMS OTP → cost savings

  • Faster login experience with lower friction

  • Improved success rate in authentication flows

Passkeys are proven to significantly improve login speed and success rates across products

What This Demonstrates

This project is not just about authentication — it shows how I:

  • Translate complex systems (security + WebAuthn) into simple UX

  • Drive behavioral change through design

  • Align business goals (cost, security) with user needs

  • Lead cross-functional decision-making across product and engineering

Understand Passkey performance and user behavior through data and market research to inform adoption strategy.

Example exploration across different devices (iOS, Android, Desktop) and identity touchpoints.

Post-launch data analysis shows Passkey adoption increased over 60%, while SMS usage decreased to 30%.