TEL AVIV, Israel and BOSTON–(BUSINESS WIRE)–transmission security, the Identity Experience™ company, today announced the release of its new survey: “How Gen Z is shaping the future of passwordless. The report includes results from a survey of more than 600 Gen Zers in the US, ages 18-24, diving into everything from their password habits and login preferences online shopping behavior and device usage. The main takeaway from Transmit Security’s report is that Gen Z doesn’t tolerate bad login experiences. If it’s too difficult or complicated, you’ve probably already lost their business. They prefer cell phones and want both ease of use and security. This means businesses need to do more to protect their accounts while simplifying the login experience.
According to the survey, 85.3% of Gen Z participants use a mobile phone to make some or all of their online purchases, and 83.3% use a smartphone to log into their bank accounts and payment systems, 37% alone using their phones for online banking and payments.
Although this demographic is largely mobile-first consumers, nearly 58.2% failed to register on a website because the process was too complex. More than 50% of Gen Zers have left a website and 49.5% have abandoned an online purchase, all because they forgot their password. These statistics are alarming, especially considering that Gen Z is “the most commercialized group of children, teens, and young adults in modern history,” according to eMarketer. In fact, analysts estimate that Gen Z already has a collective spending power of nearly $150 billion.
Reports indicate that the economic powerhouse of Gen Z is growing fastest across the globe, with profits expected to reach $33 trillion by 2030, accounting for more than 25% of all global income. With so much buying power, Gen Z is a key demographic for brands, but many companies are losing out because they fail to provide seamless signup and login experiences.
One of the most startling findings is that one in three Gen Zers has more than one mobile phone number. With 62% of survey participants saying an OTP (one-time passcode) SMS never arrived, even after clicking ‘Send Again’, OTPs are likely to be sent to another phone linked to the account. This leads to losses and loss of income. The only way to solve this problem and eliminate friction is to get rid of OTP SMS altogether.
With almost 80% admitting to having used the “Forgot Password” option in the past few months, and more than 50% confirming that they reuse the same password for different accounts, traditional passwords don’t quite work. just not with that demographic. Instead, Gen Z and enterprises will greatly benefit from offering a passwordless authentication experience that completely eliminates passwords from the entire customer journey.
“Gen Z are not only digital natives, they have grown up with the world in their hands, constantly connected on a mobile phone or tablet. Our findings confirm that they want it all: online experiences that are fast, easy and We also discovered that many are reckless with their passwords, so companies need to protect their accounts for them,” said Mickey Boodaei, CEO and co-founder of Transmit Security.
“The data shows that Gen Z is ready for passwordless authentication, and only BindID allows them to log in from any device, on any channel. They’ve been using fingerprints or face ID to unlock their phones for years. Gen Z is just waiting for companies to catch up,” Boodaei added.
Download Transmit Security »How Gen Z is shaping the future of passwordlessreport now to see the full survey results.
About transmission security:
Transmit Security is on a mission to revolutionize the identity experience market. From onboarding to authentication to intelligent authorization for customers and staff across all channels, our technology reduces all forms of identity attrition and saves businesses substantial costs. Across the world, large enterprises are standardizing transmission security to introduce innovative digital identity journeys. Customers include six of the seven largest financial institutions in the United States, two of the largest merchants in the United States, and numerous financial organizations, merchants, and online service providers in Europe, Asia, and Latin America.
For more information, please visit www.transmitsecurity.com.