How do passkeys reduce operational costs for organizations?

How Do Passkeys Reduce Operational Costs for Organizations?#

Passkeys are not only a secure and user-friendly authentication method but also a cost-effective solution for enterprises. Here’s how they reduce operational costs:

1. Eliminating SMS OTP Expenses#

• SMS OTPs come with per-message fees, especially for international users. Passkeys remove this dependency, reducing authentication costs significantly.
• Enterprises can save up to 90% of SMS-related expenses by transitioning to passkeys.

2. Lowering Account Recovery Costs#

• Traditional account recovery methods, such as phone or email verification, are labor-intensive and require support staff.
• Passkeys streamline recovery through automated cloud-based solutions, reducing the need for costly manual interventions.

3. Reducing Fraud Costs#

• Passkeys are immune to common attack vectors like phishing and credential stuffing, which can lead to costly breaches.
• Eliminating these vulnerabilities reduces financial losses from fraud and data breaches.

4. Decreasing Customer Support Workload#

• Issues like failed SMS deliveries or forgotten passwords generate support tickets, increasing operational overhead.
• Passkeys provide a seamless login experience, significantly reducing the volume of support requests.

5. Efficient Onboarding and Authentication#

• Passkeys simplify the authentication process with device-based biometrics or PINs, speeding up user logins and reducing friction.
• This efficiency enhances user satisfaction while lowering abandonment rates, indirectly benefiting the organization’s bottom line.

6. Long-Term Cost Benefits#

By adopting passkeys, organizations achieve a sustainable reduction in operational costs while improving security, user experience, and compliance. This makes passkeys an ideal investment for cost-conscious enterprises.

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About Corbado

Corbado is the Authentication Intelligence Platform for CIAM teams running consumer authentication at scale. We help you see what IDP logs and generic analytics tools can't: where passkeys, passwords, OTP, social login and fallback journeys succeed, stall or fail, which devices and browsers create friction, and when an OS update silently breaks login. Two products: Corbado Observe layers process mining and observability across authentication journeys. Corbado Connect adds managed passkeys with analytics built in alongside your IDP. VicRoads runs passkeys for 5M+ users with Corbado (+80% passkey activation). Talk to a Passkey Expert →