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The popup has to explain WHY it is asking for an email address. Else, Average Joe is just going to assume you are a spam site asking for his email.

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After you click a button labeled sign in, the popup reads "[Your site] uses Persona instead of usernames to sign you in. To sign in with Persona, please enter your email address."

I'm not sure I can do better than that text -- do you have any suggestions?

Sure. How about adding "This does not require registration in advance." (Or "previous registration" or "a previous account" or whatever is clearest). The problem is users searching for "Create Account" instead of "Sign In" when there is no "Create Account".

Edit: Sorry, on review this post was tangential to the point to which you were responding (about why the email is needed). It was targeted more at the point about user confusion by the login process.

Plus the usual "We will never sell your email info" etc. etc.

Also, the "Learn More" blue text disappears on a gray background. That part needs to pop.

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