What Are Passkeys, and Should Your Business Use Them

Passkeys: The Beginning of the End for Passwords

Passwords have been one of the biggest security weaknesses in business for decades.

Employees reuse them across multiple accounts, store them in unsecured locations, create weak combinations that are easy to guess, or unknowingly enter them into convincing phishing websites. Even with security awareness training and multi factor authentication, passwords remain one of the most common ways attackers gain access to business systems.

That’s why major technology companies are moving toward a different approach: passkeys.

A passkey allows employees to sign in using the same fingerprint, face scan, or device PIN they already use every day. There is no password to remember, type, reset, or accidentally give away.

In this article, we’ll explain what passkeys are, why they’re significantly more secure than traditional passwords, and why businesses should begin planning for a passwordless future.

What Is a Passkey?

A passkey replaces the traditional password with cryptographic credentials stored securely on your device.

Instead of entering a username and password, you verify your identity using:

  • Your fingerprint
  • Facial recognition
  • A device PIN
  • Another built in authentication method

When a passkey is created, your device generates two digital keys:

  • A private key that remains securely stored on your device
  • A public key that is stored by the website or application

When you sign in, the website sends a challenge to your device. Your device uses the private key to verify the challenge, and after you confirm your identity with your fingerprint, face scan, or PIN, you’re signed in.

At no point is a password transmitted or stored because there isn’t one.

Passkeys are built on FIDO standards that are supported by Microsoft, Apple, Google, and many of the world’s largest technology providers.

Why Passkeys Are More Secure Than Passwords

Traditional passwords rely on a shared secret. Both you and the website must know the same password.

That shared secret is exactly what attackers target.

Passkeys eliminate that weakness entirely.

They Can’t Be Phished

One of the biggest advantages of passkeys is their resistance to phishing attacks.

A passkey is tied to the exact website or application it was created for. If a user accidentally visits a fake login page designed to mimic Microsoft 365, Google, or another service, the passkey simply won’t work.

There is nothing for the user to type, copy, or unknowingly give away.

Since phishing remains one of the leading causes of account compromise, this alone dramatically improves security.

There Is No Password to Steal

When companies experience data breaches, attackers often target databases containing usernames and passwords.

With passkeys, websites store only a public key, which is useless on its own.

Even if an attacker breached the service, there are no password lists to steal and reuse against other accounts.

No More Password Reuse

Most people reuse passwords despite knowing they shouldn’t.

The challenge isn’t understanding the risk. It’s remembering dozens or hundreds of unique passwords.

Passkeys remove that burden entirely.

Each passkey is automatically created, unique to the service being used, and never reused elsewhere.

This eliminates one of the most common security mistakes made by employees and consumers alike.

Nothing to Forget

Password resets consume an enormous amount of IT time and frustrate employees.

Passkeys reduce this issue because there are no complex passwords to memorize, rotate, or reset.

Users simply authenticate with the device they’re already using.

Where Passkeys Are Already Being Used

Passkey adoption has accelerated quickly.

Today, passkeys are supported by:

  • Microsoft accounts
  • Microsoft 365
  • Google accounts
  • Apple accounts
  • Many banking platforms
  • Password managers
  • Business applications
  • Cloud services

Apple, Google, and Microsoft have built passkey support directly into their operating systems, browsers, and mobile devices, making adoption significantly easier than previous authentication technologies.

Synced Passkeys

Most users will encounter synced passkeys.

These passkeys are securely backed up and synchronized through your:

  • Microsoft account
  • Apple account
  • Google account

If a device is lost or replaced, the passkey remains available across your other approved devices.

Device Bound Passkeys

Some organizations require an even higher level of security.

Device bound passkeys remain on a specific device and are not synchronized elsewhere. These are commonly used with hardware security keys and highly sensitive accounts where maximum security is required.

Should Your Business Start Using Passkeys?

For most organizations, the answer is yes.

The good news is that moving to passkeys doesn’t require an overnight transition.

In fact, the most successful deployments begin with a small group of users and gradually expand over time.

If your business uses Microsoft 365, passkeys are already supported through Microsoft Entra. Employees can authenticate using:

  • Microsoft Authenticator
  • Security keys
  • Supported Windows devices
  • Mobile devices that support passkeys

Google Workspace supports passkeys as well, making adoption possible for many organizations without purchasing additional software.

A Practical Rollout Strategy

A phased approach works best.

Start With High Risk Accounts

Begin with users that represent the greatest risk if compromised:

  • Global administrators
  • IT administrators
  • Finance teams
  • Payroll staff
  • Executives
  • Employees authorized to move money

These accounts provide the greatest security return from passkey adoption.

Allow Employees to Use Both Methods Initially

Rather than eliminating passwords immediately, allow staff to add passkeys as an alternative sign in method.

This gives users time to become comfortable with the technology while reducing disruption.

Create Backup Methods

Every employee should have a recovery option.

Examples include:

  • A secondary registered device
  • A hardware security key
  • Additional approved authentication methods

Planning for lost devices before rollout prevents support issues later.

Things Businesses Should Consider

Passkeys offer major advantages, but they are not completely without challenges.

Account Recovery Still Matters

If someone loses the only device that contains their passkey and has no backup configured, regaining access can be more difficult.

Recovery planning should be part of every deployment.

Not Every Application Supports Passkeys Yet

While adoption is growing rapidly, some older software platforms still rely entirely on passwords.

Most businesses will operate a mix of password based and passkey enabled systems for the foreseeable future.

Shared Accounts Require Special Planning

Passkeys are designed for individual users.

Organizations that still rely on shared accounts, kiosks, or generic logins should review those workflows before moving to a fully passwordless environment.

Frequently Asked Questions

What is a passkey in simple terms?

A passkey lets you sign in using your fingerprint, face scan, or device PIN instead of a password. Your device proves your identity securely without transmitting a password.

Are passkeys safer than passwords?

Yes. Passkeys cannot be phished, there is no password to steal in a data breach, and users cannot accidentally reuse or create weak credentials.

What happens if I lose my phone or laptop?

If you’re using synced passkeys, they remain available through your Microsoft, Google, or Apple account on other approved devices. Having a backup device or recovery method is strongly recommended.

Does Microsoft 365 support passkeys?

Yes. Organizations using Microsoft Entra can enable passkeys for users through supported authentication methods such as Microsoft Authenticator, security keys, and compatible devices.

Do passkeys replace multi factor authentication?

In many cases, yes. A passkey combines something you have (your device) with something you know or are (your PIN, fingerprint, or facial recognition), providing multi factor authentication in a single step.

Final Thoughts

Passwords have served their purpose, but they’re increasingly becoming the weakest link in modern cybersecurity.

Passkeys provide a simpler experience for users while dramatically reducing the risks associated with phishing, credential theft, password reuse, and account takeover attacks.

Businesses don’t need to eliminate passwords overnight. However, organizations that begin implementing passkeys today will be better positioned for a future where traditional passwords become the exception rather than the standard.

For most companies, passkeys represent one of the easiest ways to improve both security and user experience at the same time.