How do passkeys contribute to cost savings in enterprises?

Passkeys offer a cost-efficient alternative to traditional authentication methods by reducing operational expenses and security-related costs. Enterprises implementing passkeys can achieve significant savings while enhancing security and user experience.

1. Elimination of SMS OTP Costs:

   • Traditional multi-factor authentication (MFA) methods like SMS one-time passwords (OTPs) incur recurring costs for each message sent.
   • Passkeys eliminate the need for SMS-based authentication, leading to substantial savings, especially in large-scale deployments.

2. Reduced Support Costs:

   • Passkeys eliminate password-related issues such as resets or forgotten credentials, which are among the most common reasons for helpdesk requests.
   • Fewer support tickets translate into lower operational costs and improved efficiency.

3. Lower Account Recovery Expenses:

   • Passkeys reduce account recovery efforts by securely linking authentication to the user's device.
   • Automated processes for account access minimize the need for manual intervention.

4. Decreased Security Breach Costs:

   • Passkeys' phishing-resistant nature reduces the likelihood of credential-based attacks like phishing or credential stuffing.
   • Lower risk of breaches means fewer expenses related to incident response, legal penalties, and reputational damage.

5. Streamlined User Onboarding: With a simplified passkey setup process, onboarding new users becomes faster and more cost-effective.

Scenario: A company with 1 million users replaces SMS OTPs with passkeys.

• Annual SMS costs: $0.10 per OTP × 10 logins/user = $1,000,000/year.
• Passkey implementation cost: $500,000 (one-time).
• Savings: Immediate reduction in SMS expenses and ROI achieved within the first year.

Passkeys offer a scalable, cost-efficient solution for enterprises, enabling sustained savings over time. By reducing dependency on outdated methods and minimizing operational inefficiencies, passkeys deliver both financial and security advantages.

By adopting passkeys, enterprises not only enhance security but also realize substantial cost savings, making them an essential tool for modern authentication strategies.