When we were at Plaid, we witnessed the shortcomings of passwords first-hand, both from a security and usability perspective. We saw how often users gave up when the authentication process was too hard, and for all the friction passwords introduce, they still leave users vulnerable to account takeover attacks.
User experience and security have both evolved over the past few decades, but authentication is stuck in the 1990s despite underpinning all of our online interactions.
That’s why Stytch was born – to make the next generation of authentication passwordless.
We believe in building tools and infrastructure that make it easier, faster, and safer to embed authentication into apps and websites. We’re making it easy to modernize your authentication flows and build great user experiences by adopting passwordless technologies.
The traditional approach to authentication ignores the significant downsides of passwords. 66 percent of users reuse passwords across different accounts, posing a significant security threat and creating larger breach liabilities. It’s no surprise that 81 percent of all internet breaches stem from weak or stolen passwords. At the same time, we’re constantly forgetting and resetting them. When users forget their password, about 75 percent give up and don’t complete the reset process. Similarly concerning, 46 percent of users report password authentication “frequently” or “very frequently” prevents them from completing an online transaction, costing businesses money and users.
Passwords are a headache for companies and users alike, but it doesn’t need to be this way. As the web continues to evolve, there’s a future in sight where authentication is blended into product experiences in a way that introduces the right amount of friction at the right point in time. The future of authentication will be more consumer-friendly, providing users with the ability to seamlessly move their data and credentials across the web while choosing the privacy settings that fit their needs. The evolution of the wallet in Web3 presents a compelling initial concept here, but there’s still significant work to be done to make this usable en masse for both developers and users alike. Stytch is building the future of authentication, whether that be for traditional Web 2 applications or a new generation of Web 3 applications.
Today, we have more than 3,500 developers building on the Stytch platform adding email magic links, SMS and WhatsApp passcodes, OAuth connections, one-click user invitations, and embeddable magic links into their user onboarding and login flows. In addition to these core passwordless features, we’ve seen companies of all sizes drawn to the simple developer experience and the flexibility offered by our API-first approach, including a few Fortune 500 companies that are using the product.
It’s still early days for Stytch and passwordless authentication; with the new funding, we’re going to focus on growing our product suite to accelerate the transition to a passwordless future We’re creating new possibilities when it comes to user engagement by enabling companies to weave authentication into their product experiences with new products like Embeddable Magic Links.
We are also excited to announce today our acquisition of Cotter, a leading no-code passwordless authentication platform backed by YC. We believe this combination can bring our vision of a passwordless world faster by making it even easier for developers to adopt passwordless technologies.
Julianna and Reed