FIDO authentication forecast to surpass $565M by 2031 for security, UX, fraud prevention
A global increase in cyberattacks and data breaches have resulted in the growing adoption of solutions based on FIDO Alliance standards across governments and private sectors amid increasing requirements for secure and contactless methods as a crucial component in cross-border travel and access to digital services.
Entersekt expands authentication suite
Passwordless solutions such as on-device authentication via biometrics gained traction throughout the COVID-19 pandemic, and are designed to efficiently and securely fill security gaps while supporting remote workers organizations worldwide. Many companies are now adopting these, one of which, fintech solution provider Entersekt is expanding its authentication suite to include FIDO2 authentication to address customers’ security and customer experience needs.
In an estimated 80 percent of cases, password breaches are the problem; “eliminating passwords and replacing them with more secure and user-friendly solutions is critical,” says Entersekt’s SVP for Product, Christian Ali. Authenticating consumers’ identities and transactions typically relies on outdated, less secure solutions like passwords or OTPs, while more secure solutions often require a mobile app, says Ali.
Entersekt’s solution provides an alternative to both legacy methods and app-based authentication.
An implementation of the technology by German issuing processor PlusCard, carried out in partnership with Netcetera, is the first European FIDO-based alternative to app-based authentication, the companies say.
Major market growth projected
As such, the FIDO authentication market is set to see huge growth, driving demand in the BFSI (Banking, Financial Services and Insurance), government, and retail sectors. The market is meanwhile estimated to gain a CAGR of 10.7 percent to reach revenue of $565.38 million in 2031. The market was estimated at $188.17 million in 2020.
Though while FIDO standards aim to provide better online protection, analysts from Transparency Market Research say there is a need for more FIDO-supported sites that serve the cryptocurrency market, especially in developing economies such as India where more FIDO-enabled platforms and browsers should be openly available.
The Alliance has recently announced the full agenda for its upcoming Authenticate 2021 conference from October 18 to 20 which will analyze various case studies focusing on the Internet of Things, biometrics, and identity verification, and will be conducted by leading service providers, including eBay, Facebook, and Google.