Do passkeys truly reduce password resets and OTP usage?

Yes, adopting passkeys demonstrably reduces password resets and reliance on OTP (one-time password) methods, leading to substantial operational cost savings for enterprises.

Password resets are among the most frequent and costly helpdesk requests for enterprises. Passkeys directly mitigate this issue:

• Elimination of Passwords: Passkeys rely on biometric authentication or secure device-based credentials, eliminating the need for users to manage, forget, or reset traditional passwords.
• Fewer Helpdesk Calls: With fewer forgotten passwords, organizations report significantly reduced helpdesk volume, allowing IT support teams to focus on more critical tasks.

Traditional OTP methods incur considerable operational expenses due to SMS charges, email-based costs, or hardware token management. Passkeys dramatically reduce these recurring costs:

• Secure Single-Step Authentication: Passkeys provide phishing-resistant, one-step authentication without the need for additional OTP verification, significantly decreasing per-login expenses.
• Reduction of Ongoing Expenses: Enterprises that adopted passkeys—such as Amazon, Google, and Microsoft—experienced considerable decreases in OTP-related costs by eliminating the ongoing expenses associated with SMS and hardware tokens.

Enterprises adopting passkeys have demonstrated substantial cost savings:

• Significant reduction in IT helpdesk calls related to password resets (often by 40–60%).
• Major cuts in OTP operational costs, typically 50% or more, starting immediately after passkey implementation.

In conclusion, offering passkeys not only reduces password resets and OTP usage but translates directly into measurable and substantial cost savings, making passkeys a financially compelling authentication strategy.