Passkeys vs. Passwords: Why Businesses Are Making the Switch

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Passwords have long been one of the biggest security risks for businesses. Employees often reuse them across multiple accounts, create weak passwords, or unknowingly enter them into convincing phishing websites.

That’s why passkeys are quickly becoming the future of secure authentication. Instead of relying on a password, passkeys let users sign in with the same fingerprint, facial recognition, or PIN they already use to unlock their phone or computer. Because there’s no password to enter, there’s nothing for cybercriminals to steal, guess, or trick users into revealing.

In this article, we’ll explain what passkeys are, how they improve cybersecurity, and whether your business should start using them.

How Do Passkeys Work?

A passkey replaces your traditional password with the built-in security features of your device.

Rather than typing a password, you verify your identity using a fingerprint, facial scan, or PIN.

When you create a passkey for a website or application, your device generates two cryptographic keys:

• A private key that stays securely stored on your device and never leaves it.
• A public key that’s stored by the website or service.

When you sign in, the website sends a unique challenge to your device. Your private key securely verifies that challenge after you confirm your identity with your fingerprint, face, or PIN. Since no password is ever transmitted or stored, attackers have nothing valuable to intercept.

This technology is based on the FIDO (Fast Identity Online) standard and is supported by Apple, Google, and Microsoft.

Why Passkeys Are More Secure Than Passwords

Traditional passwords rely on shared secrets between you and a website. Unfortunately, those secrets are exactly what attackers target.

Passkeys eliminate that weakness entirely.

They Protect Against Phishing

A passkey only works with the legitimate website where it was originally created.

Even if an employee lands on a convincing fake login page, the passkey simply won’t authenticate. Since there’s no password to type, attackers can’t steal login credentials through phishing attacks.

They Reduce the Impact of Data Breaches

When websites use passkeys, they only store your public key, not your private key.

If that website experiences a data breach, hackers can’t steal passwords because none exist. The public key alone cannot be used to access your account.

They Eliminate Weak and Reused Passwords

Every passkey is automatically unique to a specific website or application.

Users don’t have to create, remember, or reuse passwords, significantly reducing one of the most common causes of compromised accounts.

While traditional multi-factor authentication methods like SMS codes or push notifications improve security, attackers have found ways to bypass many of those methods through social engineering. Passkeys offer much stronger protection.

Where Can You Use Passkeys Today?

Passkey support has expanded rapidly across major technology platforms.

You can already use passkeys with:

• Microsoft accounts
• Google accounts
• Apple IDs
• Many password managers
• Financial institutions
• An increasing number of business applications

Because Apple, Google, and Microsoft have built passkey support directly into their operating systems and browsers, most modern smartphones, tablets, and computers are already capable of using them.

There are two primary types of passkeys:

Synced Passkeys

These are securely backed up to your Apple, Google, or Microsoft account. If you replace or lose your device, your passkeys remain available across your trusted devices.

Device-Bound Passkeys

These remain stored on a single physical device, such as a hardware security key. They’re commonly used for highly sensitive or regulated environments where maximum security is required.

Should Your Business Start Using Passkeys?

For most organizations, the answer is yes.

The good news is that you don’t need to replace every password overnight. Many businesses successfully introduce passkeys gradually while continuing to support traditional logins during the transition.

If your business uses Microsoft 365, passkeys are already available through Microsoft Entra. You can learn more about deploying them in Microsoft’s official Entra documentation. Employees can authenticate using:

• Microsoft Authenticator
• A hardware security key
• Their supported computer or mobile device

Google Workspace also supports passkey authentication.

Passkeys don’t just improve security, they also speed up the login process. Microsoft reports that signing in with a synced passkey typically takes only a few seconds, compared to well over a minute when using a password combined with traditional multi-factor authentication.

A practical rollout plan includes:

1. Enable passkeys first for administrators, executives, finance personnel, and other high-risk users.
2. Allow employees to register passkeys while keeping passwords available during the transition.
3. Ensure users register a backup device or hardware security key to prevent lockouts if a device is lost.

An experienced IT provider can help deploy passkeys across your organization while minimizing disruptions for employees.

Things to Consider Before Deploying Passkeys

Although passkeys offer significant security advantages, planning ahead is important.

Prepare for Account Recovery

If someone only has one device registered and loses it, recovering access can become more difficult.

Encourage employees to register multiple trusted devices or use synced passkeys so they always have a recovery option.

Some Applications Still Require Passwords

Not every software vendor supports passkeys yet.

Many businesses will operate with both passwords and passkeys until older applications catch up.

Plan for Shared Devices

Because passkeys are tied to an individual and their device, organizations that rely on shared workstations or shared accounts should establish authentication policies before deployment. To learn more, contact Twintel today.