Introduction

Traditionally, passwords have been used as one of the simplest means of securing access to the online accounts for decades already. Everybody understands what a password is and how it works: it is necessary to come up with one, to keep it secret, and use when entering your account.

However, the rapid digitalization of the modern world makes the above scheme less and less practical and user-friendly.

On the one hand, everybody uses dozens of various online resources today. Companies use cloud applications, remote working solutions, banking systems, customer management tools, business communication channels, and software dashboards. One individual needs to log into different online resources throughout the course of a day which results in a necessity to use different passwords to do that.

That becomes problematic because weak passwords are more vulnerable while strong ones are hard to memorize. Moreover, using the same password in order to log in multiple accounts can result in one compromised password being the reason of attacking all the other accounts.

There is a new trend emerging which is aimed at addressing the problem: passkeys.

Passkeys are passwords that allow for passwordless authentication of the user on the basis of public-key cryptography. The device owned by the user generates a cryptographic credential which proves his or her identity during the sign-in process. The private part of the passkey stays secure and protected by the device while the service keeps the public key.

This solution does not belong to the realm of enthusiasts anymore.

According to the statistics of FIDO Alliance of May 2026, an estimated 5 billion passkeys have been in use across the world at the time, while 75% of respondents have already set a passkey on their account. Its workforce research revealed that 68% of surveyed companies (employing 500 or more individuals) were already deploying, piloting, or rolling out passkeys for the purposes of employee authentication.

Are passwords gone forever then?

Not yet.

However, 2026 marks an important milestone on the path towards passwordless authentication. The concept becomes easier, easier to implement and increasingly useful both for regular users and for businesses.

This article will explain the concept of passkeys, their popularity, benefits and limitations, as well as implementation in the business.

What Is a Passkey?

The passkey is the type of digital credential that allows for user authentication without a need to submit a password.

At the core of its work lies a set of cryptographic keys.

There is a private one that is secured by the device or credential system, and a public one, which is tied to the online service.

In the process of signing in, the online service can challenge the device to prove that the user possesses the right credentials, but without disclosing them.

This is what fundamentally distinguishes the passkey from a password-based system.

In the latter, the user usually provides the secret in the process of authentication.

However, in case of the passkey, it is done using cryptographic proof.

According to FIDO, passkeys are the alternative to passwords based on public-key cryptography technology.

Why Are Passkeys Becoming Important in 2026?

There are several factors that are forcing authentication away from passwords.

First, there is the increase in the number of online services people use.

Second, there is the increase in the practice of phishing and credential theft.

Third, there is the increase in complexity in terms of business technology.

Employees might be working from various locations and accessing cloud applications via laptops, mobile devices, and other means. Businesses thus not only need to consider passwords but also identity, access management, device security, and account recovery.

Passkeys solve some of those problems by changing the fundamental sign-in process.

The numbers speak for themselves.

According to the research done in 2026 by the FIDO Alliance, 90% of consumers surveyed were aware of passkeys and 75% had enabled passkeys on at least one account. The same research revealed that 68% of surveyed organizations with at least 500 employees were using, piloting, or rolling out passkeys for workforce authentication.

These numbers don’t suggest that all accounts have become passwordless.

These numbers do indicate, however, that passkeys are no longer an obscure experimental technology.https://insightera.co/zero-trust-cybersecurity-small-businesses-2026/

How Passkeys Work

The specifics behind passkeys are a bit complex, but the actual experience from a user’s standpoint can be pretty simple.

Consider, for instance, that you register an account on a site which supports passkeys.

In place of asking for you to come up with a password, the service gives you a choice for a passkey instead.

You might be asked to prove who you are by using one of the following:

Fingerprint

Facial recognition

Device PIN

Some other method of local authentication supported by the service

Once the credential is established, the service can then perform cryptographic verification in subsequent logins.

Here’s the thing — your biometrics are not necessarily being transmitted to the website for purposes of authenticating you. What happens is that your device uses your biometrics to authenticate and access the passkey credential.

This is a critical point to understand.

Passkeys and Phishing

One of the most compelling cases made for passkeys is phishing protection.

Typically, traditional phishing involves trying to trick the user into putting in their username and password on a phishing page.

Credentials are then captured and reused elsewhere.

But this is not how passkeys work.

The authentication relies on cryptographic credentials which are linked to the actual service being accessed. This makes the classic “put in your password on a convincing-looking fake site” attack much harder to pull off.

In accordance with CISA, organizations are recommended to transition towards phishing-resistant multifactor authentication and recognize strong authentication as one of the cybersecurity practices.

It doesn’t mean that with passkeys no other forms of attack are possible.

The attacker can still go after users themselves, their devices, account recovery procedures, and the organization itself.

However, eliminating dependence on reusable passwords removes one potential vulnerability.

Passkeys Compared to Traditional Passwords

This distinction may be stated simply as follows:

Password

The user invents a secret.

The user remembers it.

The user types it into a login form.

The service authenticates it.

Passkey

The user’s device generates or protects a cryptographic credential.

The user authenticates locally.

The device proves possession of the credential.

The service authenticates the cryptographic response.

It can thus make for an improved user experience as well as a more secure authentication process.https://fidoalliance.org/passkeys/

Passkeys versus Multifactor Authentication

Passkeys and multifactor authentication are not the same things.

Multifactor authentication adds several forms of verification.

Such as:

Password + authentication code

Or

Password + security key

Passkeys are quite a different way because they do not include passwords in the process of verification at all.

The main thing is that not all forms of multifactor authentication can resist phishing attacks.

In particular, CISA suggests that organizations use phishing-resistant multifactor authentication whenever it is possible for them.

Also, it says that security keys and other similar methods are safer compared to other ways including codes received via SMS.

Thus, passkeys are a step on the way to better authentication, and not just an alternative to passwords.

The Advantages of Passkeys

1. Improved Resistance to Password Stealing

Regular passwords can be stolen via phishing, credential stuffing, malware, or social engineering attacks.

Passkeys decrease dependence on the use of reusable secrets.

This may make some forms of account takeover harder.

2. More Convenient Login

A person will not have to memorize one more complex password.

The sign-in process will usually include biometric confirmation or entering a PIN code for the device depending on its type and service.

3. Less Password Reuse

Password reuse is a problem.

Individuals commonly resort to credential reuse since it is hard to remember several dozen of passwords.

Passkeys minimize such behavior since the authentication process does not depend on any shared secret.

4. Fewer Password Reset Tasks

Enterprises spend time handling forgotten passwords, account recovery, and credential resets.

Lowering the usage of regular passwords can possibly decrease such tasks.

The FIDO Alliance research conducted before among businesses found that there were advantages from passkeys adoption in the areas of security, user experience, productivity, and cost savings.

5. Improved User Experience

Security is frequently criticized for creating friction.

Passkeys seek to improve both aspects.

One will have to use device-based authentication rather than type in a complex password.

Challenges with Passkeys

Passkeys are great, but they are not flawless.

1. Device Dependence

A user can get used to logging in to his or her accounts using a specific device.

In case that device is lost, damaged, or updated, recovery of an account becomes crucial.

Therefore, a good passkey implementation requires account recovery strategies.

2. Account Recovery Remains Important

Password-less logins do not mean that identity management issues can be ignored.

A person can lose the device.

A person can lose access to accounts.

A person can upgrade his or her phone or computer.

Thus, a company should develop an account recovery strategy instead of concentrating exclusively on the login process.

3. Uniform Adoption of Passkeys Is Impossible

Not all services have an equally advanced approach to passkeys.

There are some companies which have developed a strategy while other people may still use traditional systems which require passwords.

This means that a transition period becomes a necessity instead of immediate passwordless logins.

4. Organizational Complexity

Big enterprises can have multiple identity solutions, applications, contractors, legacy solutions, and complex access policies.

According to a survey done by the FIDO Alliance and HID in June 2026, there are a lot of enterprises which face fragmentation of their identity management, and 58% of those companies claimed that digital identity management became more complex over the past two years.

It is another indication of the fact that identity governance.

Passkeys: Are They Truly More Secure?

They provide many security benefits especially when it comes to protecting against phishing attacks and credential theft; however, the term “more secure” does not mean “impenetrable.”

Security is about the whole system.

A business organization may use robust authentication and yet experience issues like:

Insecure account recovery

Insecure device protection

Too many permissions

Software vulnerabilities

Social engineering

Inside threats

Insecure application architecture

Passkeys help resolve authentication issues.

Passkeys cannot replace other cybersecurity measures.

This is the reason why CISA keeps focusing on MFA, patch management, backups, access control, and user education along with enhanced authentication.

Concluding thoughts

While passwords have existed for decades, the digital age is far different from what it used to be.

The number of accounts is higher, many businesses rely on cloud-based services, remote work is a norm, and credential-based attacks are an important cybersecurity issue.

With passkeys, there is a completely new authentication paradigm.

Without making people memorize and create their passwords, passkeys rely on cryptographic credentials and device authentication.

This approach can make sign-in more convenient and mitigate some of the risks related to passwords.

Additionally, passkeys seem to reach considerable adoption levels.

In its 2026 research, the FIDO Alliance mentioned that billions of passkeys were in use by then, while many surveyed organizations tested and deployed passkeys for employee authentication.

However, passkeys are not a panacea to cybersecurity issues.

It is still important to implement access controls, have secure devices, train employees, update software, have data backups and carefully design account recovery procedures.

It is likely that the most successful companies will be those which will view passwordless authentication as a part of a bigger identity management strategy.

For individual users, the transition to the new authentication method can be gradual.

And for businesses, the most optimal thing would be to start using passkeys in the highest priority accounts, test out the process, set up the recovery procedure and then gradually expand the application.

Password may not disappear overnight, but the way we authenticate changes for sure.

Moving forward, online security will include the implementation of authentication methods that are hard to steal, convenient to use, and less reliant on memorized secrets.

Passkeys are one of the examples of such technologies.

Sources

Zero Trust Architecture and NIST’s guidelines on authentication provide a good background to identity-centric security, while CISA offers practical recommendations regarding phishing-resistant authentication.

The FIDO Alliance’s 2026 research provides the latest adoption statistics and workforce data mentioned above in the article.