For decades, passwords have acted as the primary barrier to unauthorized access. However, a more secure and efficient approach has emerged: passwordless authentication.
Compared to traditional passwords, passwordless authentication offers a safer, more user-friendly way to access systems and applications. This is especially useful as data breaches become more common and threaten to expose sensitive information.
Why the shift? Passwords are inherently flawed. Many users rely on weak passwords or reuse the same credentials across multiple accounts, leaving them vulnerable to breaches. And phishing attacks, where malicious actors trick users into revealing their passwords, are alarmingly common.
Consider these staggering statistics:
To avoid this, more and more organizations are adopting passwordless authentication. Read on to explore what passwordless authentication is, its benefits and its relevance across industries.
What Is Passwordless Authentication?
Passwordless authentication is an approach to secure access that doesn’t rely on traditional passwords. Instead, it uses alternative methods like FIDO, PKI or biometrics that are significantly more secure and convenient.
Unlike traditional methods, passwordless authentication ensures users don’t have to remember or manage passwords. This reduces the risk of credential-based attacks and enhances the overall security posture of organizations. For example, employees can use fingerprint scanners to log into workstations or secure areas.
Types of Passwordless Authentication
As organizations move toward enhancing security and user convenience, passwordless authentication has gained traction as reliable alternatives to traditional passwords.
Here are four passwordless methods that cater to various security requirements and user experiences.
1. FIDO
Built on the FIDO2 standard, Fast Identity Online (FIDO) credentials or passkeys leverage public key cryptography for passwordless authentication on desktops, websites and applications.
Organizations can choose how and where passkeys are deployed — they can be integrated as passkeys in users’ mobile phones, as security keys and smart cards, or as integrated platform authenticators when available.
2. PKI
Public key infrastructure (PKI) relies on a pair of cryptographic keys to protect authentication. In this system, the public key is shared openly, while the private key stays secure and hidden.
A network of trusted certificate authorities (CAs) manages and issues digital certificates, which confirm the identities of users, devices or organizations. During authentication, the public key checks a digital signature created with the private key, ensuring the authenticity of the entity trying to access the system.
As with FIDO, these cryptographic keys can also be stored in security keys and smart cards.
3. Biometrics
Biometrics use unique physical traits such as fingerprints, facial recognition or voice patterns to verify identity.
Devices like smartphones, laptops and specialized scanners commonly use biometric methods to provide a seamless and highly secure log-in experience. This approach is especially popular for personal devices and high-security environments.
4. Push Notifications
Push notifications deliver actionable alerts to a registered device, prompting users to approve or deny log-in attempts.
By ensuring that only pre-authorized devices receive these notifications, this method combines simplicity with robust security, making it an excellent choice for remote access, cloud services and enterprise applications.
Industries That Are Prioritizing Passwordless Authentication
Passwordless authentication enhances security and user experience while addressing sector-specific challenges. Here are eight major industries where passwordless authentication is becoming more commonplace.
1. Finance & Banking
Fintech companies and banks rely heavily on secure authentication methods to protect financial data and prevent cyberattacks.
Mobile banking apps frequently use biometrics, such as fingerprint or facial recognition, or push notifications to authorize transactions. These methods protect sensitive customer information and provide a frictionless user experience, which helps reduce the risk of phishing and fraud.
2. Healthcare
Hospitals are another key adopter of passwordless authentication, particularly in environments with shared workstations.
For instance, doctors and nurses often use biometric log-ins to quickly and securely access electronic health records (EHRs). This approach ensures compliance with regulations like HIPAA while protecting sensitive health data.
3. Technology & IT
Software development and IT consulting companies employ passwordless authentication to secure their intellectual property and critical systems.
Developers, for example, often use hardware security keys to access code repositories and other sensitive resources. As a result, passwordless authentication ensures robust protection against unauthorized access.
4. Retail & eCommerce
Retail stores and eCommerce platforms use passwordless authentication to enhance the customer experience while preventing account takeover fraud.
Customers often log into online stores using OTPs for easier access without compromising security. By safeguarding user data during transactions, retailers can build customer trust and loyalty.
5. Government & Defense
Government agencies and defense departments prioritize national security, and passwordless methods like smart cards and biometrics are commonly used to grant employees access to classified systems and data. These methods ensure that only authorized personnel can access critical resources, providing strong protection against espionage and data breaches.
6. Education
Educational institutions like universities and colleges use passwordless authentication to simplify access to online learning portals and protect academic data.
Students and staff often use biometric authentication to log in, which reduces the administrative burden of managing forgotten passwords while maintaining secure access to educational resources.
7. Manufacturing & Industrial
Manufacturers and factories need to protect operational technology systems. That’s why workers frequently use hardware tokens or smart cards to access secure systems and machinery. This helps to protect intellectual property and prevent unauthorized access to critical operations.
8. Legal & Professional Services
Law firms, accounting firms and other professional service companies use passwordless authentication to secure sensitive client files and comply with privacy regulations.
For instance, lawyers may use biometrics or push notifications to access case documents and communication platforms. This approach ensures client confidentiality while providing seamless access to critical resources.
Benefits & Advantages of Passwordless Authentication
Eliminating traditional passwords opens the door for organizations to:
- Enhance security — Passwordless methods like biometrics and FIDO credentials remove vulnerabilities associated with passwords, such as phishing and brute force attacks. These methods are harder to replicate and significantly reduce the risk of unauthorized access.
- Improve the user experience — Faster, frictionless log-ins reduce frustration from forgotten passwords while improving productivity
- Save money — No more passwords means organizations can drastically reduce the number of password-related support requests, decreasing help desk costs
Challenges & Considerations
While passwordless authentication offers numerous benefits, organizations should address a few key challenges and considerations before implementation:
- Adoption barriers include resistance from users to adopt new forms of authentication and the initial costs of new hardware or infrastructure. Clear communication, training and phased implementation can ease the transition.
- Integration with existing environments — Many organizations have established, complex infrastructures in place. Here, it is important to choose hybrid solutions that are easy to integrate and work with legacy systems.
- Accessibility can be a challenge for users without biometric-capable devices or smartphones. To meet diverse user needs and security requirements, organizations should offer a range of methods like physical access cards, smart cards and security keys.
Addressing these challenges requires strategic planning to ensure a smooth transition to passwordless authentication. Start with a comprehensive assessment of organizational needs, infrastructure and user base. You can do this by identifying the most suitable passwordless methods for your specific use cases. Then, look for a vendor that can supply your organization with the right passwordless authentication products.
The Future of Passwordless Authentication
The passwordless authentication market is set to grow from USD 18.82 billion in 2024 to USD 60.34 billion by 2032, with a compound annual growth rate (CAGR) of 15.7%. This growth trajectory underscores the increasing demand for secure authentication solutions across industries. Here are the key trends driving this expansion.
Passkeys: The Next-Generation Standard
Passkeys, championed by the FIDO Alliance, are emerging as the industry standard for passwordless authentication. Unlike traditional passwords, passkeys offer interoperability across devices and platforms, ensuring a consistent and frictionless user experience. Their design eliminates the need for users to remember or store passwords, drastically reducing the attack surface for cyber threats.
Enhanced Security for Modern Threats
By leveraging advanced technologies like public-key cryptography, biometrics and token-based authentication, organizations can significantly improve their security posture. These methods ensure that authentication factors cannot be easily stolen, shared or guessed, reducing the risk of unauthorized access to sensitive data and systems.
Improved User Experience
Passwordless authentication transforms the log-in experience by offering faster, more intuitive access. Whether logging in with a fingerprint, facial recognition or a hardware token, users benefit from a process that eliminates the frustration of forgotten passwords and frequent resets. This improved experience not only boosts user satisfaction but also enhances productivity by minimizing downtime caused by authentication delays.
Wider Industry Adoption
Tech giants such as Google, Apple and Microsoft are leading the charge in integrating passkey technology into their ecosystems. These companies are embedding passwordless solutions into operating systems, browsers and services, accelerating adoption across diverse industries.
With widespread support from influential players, passwordless authentication is becoming a viable and attractive option for businesses of all sizes. This adoption is expected to trickle down to smaller organizations as technology becomes more accessible and cost-effective.
Conclusion
Passwordless authentication is transforming digital security by removing the vulnerabilities of traditional passwords. Organizations can achieve enhanced security, streamlined user experiences and cost savings by leveraging methods like FIDO credentials and PKI. As adoption grows and technology evolves, passwordless authentication is poised to become the standard for secure, convenient access.
Ready to explore passwordless authentication for your organization? Use our ROI calculator to see how much you can save with passkeys.
