English   Deutsch   Русский   中文    

The end of the Social Login begins: FIDO Alliance, Samsung, and PayPal to redefine authentication

Mar 06, 2014 by Martin Kuppinger

Recently, the FIDO Alliance announced that PayPal and Samsung were enabling consumer payments with fingerprint authentication on the new Samsung Galaxy S5. My valued colleague Dave Kearns and I have written various posts about the FIDO Alliance and the impact we expect they will have on the market of strong authentication and BYOI (Bring Your Own Identity). Have a look here, here, and here.

What first reads like one of these unexciting press releases I receive in huge quantities daily is in fact about a groundbreaking paradigm shift that will have massive impact on device vendors, strong authentication technology providers, and - last but not least - on social networks.

FIDO is all about enabling users to rely on one personal digital identity, their “own identity” in BYOI, to access various services. Not only that, it is also about enabling BYOI with strong authentication and, finally, getting rid of username and password authentication. While the Samsung/PayPal case is the first large use case for the FIDO Alliance, this is just the beginning. Looking at the long list of members of the FIDO Alliance, others will follow. Users then can access various services, relying on strong authentication and a locally managed identity on their smartphone. In addition, Samsung will not remain the only device vendor delivering FIDO-enabled devices.

Obviously, that will affect many markets. Strong authentication vendors, device vendors, services acting as Identity Providers, etc.

It especially will have a massive impact on social networks. A significant part of their attractiveness is that many of these have become an Identity Provider, supporting the “social login”. This is part of the business model of social networks – users are bound to the networks and the social networks learn about user behavior, which is at the core of their business model. However, there is a downside to that from a marketing perspective, as I recently explained. Aside from that, social logins commonly lack support for strong authentication.

When the FIDO Alliance success continues, the need for social logins – the most common way for BYOI –will disappear. Why should users rely on social logins when they have a more secure way to authenticate, built into their devices of choice? With the beginning of the end of social logins, an important part of the business model of social networks start to crumble away. And that is the real big news behind the recent announcement of FIDO Alliance.

Google+

top
Author info

Martin Kuppinger
Founder and Principal Analyst
Profile | All posts
KuppingerCole Blog
By:
KuppingerCole Select
Register now for KuppingerCole Select and get your free 30-day access to a great selection of KuppingerCole research materials and to live trainings.
Register now
Spotlight
Operational Technology / Industry 4.0
Industry 4.0 is the German government’s strategy to promote the computerization of the manufacturing industry. This strategy foresees that industrial production in the future will be based on highly flexible mass production processes that allow rich customization of products.
KuppingerCole Services
KuppingerCole offers clients a wide range of reports, consulting options and events enabling aimed at providing companies and organizations with a clear understanding of both technology and markets.
Links
 KuppingerCole News

 KuppingerCole on Facebook

 KuppingerCole on Twitter

 KuppingerCole on Google+

 KuppingerCole on YouTube

 KuppingerCole at LinkedIn

 Our group at LinkedIn

 Our group at Xing
Imprint       General Terms and Conditions       Terms of Use       Privacy policy
© 2003-2015 KuppingerCole