Do passkeys truly reduce password resets and OTP usage?

Does offering passkeys truly reduce password resets and OTP usage, generating substantial cost savings?#

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

How Passkeys Reduce Password Resets#

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.

Reducing OTP Reliance#

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.

Quantifiable Cost Savings#

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.

Read the full article#

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 →