---
url: 'https://www.corbado.com/blog/saas-companies-integrate-passkeys'
title: '6 Reasons Why SaaS Companies Should Integrate Passkeys'
description: 'This article highlights the benefits of passkeys for SaaS companies ranging from increasing security to improving user experience and conversion rates.'
lang: 'en'
author: 'Janina'
date: '2023-03-27T00:00:00.000Z'
lastModified: '2026-03-25T10:42:35.987Z'
keywords: 'SaaS'
category: 'Passkeys Strategy'
---

# 6 Reasons Why SaaS Companies Should Integrate Passkeys

## Key Facts

- Traditional **2FA activation rates** sit at only 12-15%, leaving most users unprotected.
  Passkeys are inherently 2FA by default, securing all accounts without requiring extra
  steps.
- Per Gartner Group, large businesses allocate nearly **50% of IT help desk budgets** to
  password resets, with each reset costing an average of USD 70 and taking 2-30 minutes to
  resolve.
- More than 46% of consumers avoid signing up due to security fears. Passkey biometric
  login can boost **sign-up conversion rates by up to 33%** by reducing friction while
  increasing trust.
- Passkeys synced via **ecosystem credential managers** like iCloud Keychain or Google
  Password Manager eliminate per-device re-enrollment, increasing user retention by 20%.

## 1. Introduction: Passkeys for SaaS

Just ask yourself: how often has this happened to you? You needed to access a website and
couldn't remember your password. Thus, you just chose not to login because also resetting
the old one and managing the new password didn't seem like viable options. Thats an
everyday example that demonstrates how important easy authentication is for any SaaS
company.

Passkeys are a new super tool that not only enhances security but also has the potential
to be one of the most effective growth hacks for any SaaS website or app. Passkeys will
become an increasingly important aspect when offering any form of customer login, and SaaS
companies are seeing their value as a secure and convenient solution to manage user
authentication. Whether you have a public customer sign-up or not, integrating passkeys
into your product can bring a range of benefits that improves your users' experience and
secures your business:

1. Enhance IT security prevent [phishing](https://www.corbado.com/glossary/phishing) attacks
2. Save money by avoiding password-based expenditures
3. Increase your sign-up rate
4. Provide the best customer experience possible
5. Increase your [customer retention](https://www.corbado.com/blog/passkeys-user-retention-keychain) rate
6. Be [future-ready](https://www.corbado.com/faq/are-passkeys-the-future) and gain a competitive advantage

Lets examine these advantages of passkeys for SaaS companies and why you should consider
integrating them soon.

## 2. Enhance IT security and prevent phishing attacks

First and foremost, passkeys are a form of 2-factor authentication
([2FA](https://www.corbado.com/blog/passkeys-vs-2fa-security) the device is the first factor and fingerprint /
face scan is the second factor) but means significantly less friction for the user, as the
second factor often isnt noticed. Unlike traditional passwords, which can be easily
guessed, forgotten or stolen creating the basis of almost all attack vectors , passkeys
are relying on public-key cryptography and are generated and stored on the user's device.
They are bound to the device or account and cannot be extracted or stolen. Providing the
users secure authentication is the top priority of a sign-up process and passkeys are one
of the most secure authentication methods today. They prevent not only
[phishing attacks](https://www.corbado.com/blog/3ds-authentication-failed) but all other password-based attacks,
like [credential stuffing](https://www.corbado.com/glossary/credential-stuffing) or brute force attacks as well.

Companies that already authenticate their users via
[Single Sign-On](https://www.corbado.com/blog/passkeys-single-sign-on-sso) (SSO) are often wondering if and how
they can benefit from passkeys as well. Passkeys alongside
[SSO](https://www.corbado.com/blog/passkeys-single-sign-on-sso) can provide a secure and easy login experience
for all users. With [SSO](https://www.corbado.com/blog/passkeys-single-sign-on-sso) solutions, the customers
themselves are responsible for account security. However, for all other accounts (e.g. for
smaller companies or freelancers), it is not sufficient to refer to a traditional
[2FA](https://www.corbado.com/blog/passkeys-vs-2fa-security) option as the [2FA](https://www.corbado.com/blog/passkeys-vs-2fa-security)
activation rate is only between 12-15% and thus very low. Passkeys are by default a form
of [2FA](https://www.corbado.com/blog/passkeys-vs-2fa-security) that is inherently active for all these users and
does not require to open another app or pull out an additional device.

## 3. Save money by avoiding password-based expenditures

Resetting a password may seem like an insignificant task but the compound effect of
thousands of resets can make a companys IT costs skyrocket and login
[conversion rates](https://www.corbado.com/blog/logins-impact-checkout-conversion) drop. According to a recent
study by the Gartner Group, large businesses allocate nearly 50% of IT help desk costs to
[password resets](https://www.corbado.com/faq/passkeys-reduce-password-resets-otp-costs) (if there is no
well-built self-service for
[password resets](https://www.corbado.com/faq/passkeys-reduce-password-resets-otp-costs)) and fix times range
from 2-30 minutes. On average, it costs an enterprise $70 for a single
[password reset](https://www.corbado.com/blog/password-reset-increase-customer-retention). This only concerns
organization-internal [password resets](https://www.corbado.com/faq/passkeys-reduce-password-resets-otp-costs) in
customer-facing logins, the costs can be even higher because of "lost" conversions. Simply
enabling passkeys will cut down on
[password reset](https://www.corbado.com/blog/password-reset-increase-customer-retention) requests since
customers no longer need to remember a password for each application. Organizations can
benefit significantly from this by reducing the cost of account lockouts and boost their
login rates.

## 4. Increase your sign-up rate

According to a poll conducted in several international markets, more than 46% of consumers
avoided signing up for websites because they felt unsafe providing personal information.
Moreover, 79% of users do not trust a website anymore once a
[data breach](https://www.corbado.com/glossary/data-breach) is made public. Hence, especially with a public
customer sign-up, website visitors are far more likely to create an account if the
authentication process gives them a sense of security. Passkeys can increase the security
significantly without affecting the user experience. They are convenient since biometric
login is the fastest login method and most users are already familiar with the underlying
technologies such as [Face ID](https://www.corbado.com/faq/is-face-id-passkey), Touch ID or
[Windows Hello](https://www.corbado.com/glossary/windows-hello). Passkeys provide a solution that is superior in
terms of both convenience and security, which will increase the likelihood that a user
will create an account.

## 5. Provide the best customer experience possible

When creating sign-up forms, the main goal should be to stand out with your products user
experience at the first touchpoint at the sign-up / login. Thus, having a
[user-friendly authentication](https://www.corbado.com/faq/passkey-user-experience-benefits-non-technical-audience)
is key for the following experience. By making use of biometric data for authentication,
users can access the system without creating another password and instead leverage their
on-device authentication. This great customer experience and simplicity of creating new
accounts also pays off and can boost your
[conversion rates](https://www.corbado.com/blog/logins-impact-checkout-conversion) by up to 33%.

## 6. Increase your customer retention rate

Passkeys can also be used to enhance customer engagement and build brand loyalty. Users
are more likely to quit the website if the login process is too tedious. A passwordless
option perfectly ensures they can log in at any time without the hassle of managing
passwords or completing a multi-step authentication process. Especially, passkeys offer a
more convenient and efficient solution for managing user access, as users dont even have
to use email magic links or one-time passcodes. This approach can work equally well in
platforms like a [SaaS CRM](https://www.ringy.com/use-cases/saas), where quick and secure
access is essential for daily operations. By providing a significantly easier sign-up
process, a company's Net Promoter Score (NPS), which rates the likelihood of recommending
a product or service, can be increased for that company's product.

Moreover, passkeys are synced inside an ecosystem via an Apple
[iCloud KeyChain](https://www.corbado.com/glossary/icloud-keychain),
[Google Password Manager](https://www.corbado.com/blog/how-to-use-google-password-manager) or
[Microsoft account](https://www.corbado.com/blog/use-windows-11-without-windows-hello-microsoft-account).
Therefore, they are available on all devices using the same account which prevents the
repeated creation of a passkey for each device. This makes it much easier for users to
access a website and complete the tasks they need to, increasing user retention by 20 %.
The credential selection is shown alongside passwords only when the user's
[authenticator](https://www.corbado.com/glossary/authenticator) has a credential registered with the website or
app.

Another huge benefit of passkeys is their autofill functionality, which does not even
require to remember the username (e.g., email address) anymore. Enabling automatic prefill
of usernames and passkeys for any sign-up is a huge lever just think how often you visited
a site, but did not remember the email address you used when signing up.

## 7. Be future-ready and gain a competitive advantage

The digital leaders Apple, Google and Microsoft enforce passkeys as new login standard and
digital-first companies with huge development resources like
[PayPal](https://www.corbado.com/blog/paypal-passkeys), [eBay](https://www.corbado.com/blog/ebay-passkeys) or
[Kayak](https://www.corbado.com/blog/kayak-passkeys) already deploy passkeys to their customers. By being one of
the first to support the new login standard, your company is immediately
[future-ready](https://www.corbado.com/faq/are-passkeys-the-future) and provides a great USP when compared to
competitors. In the current market situation, it is all about optimizing your existing
processes and capturing potential customers (from competitors). Having a killer login with
passkeys can be a huge lever and shows that you as a company care about customer- and
data-centricity. A good way to implement passkeys in a SaaS and be
[future-ready](https://www.corbado.com/faq/are-passkeys-the-future) is also via
[SaaS AI development services](https://appkodes.com/ai-development-services/).

## 8. Conclusion

In conclusion, passkeys are an essential component for every modern product that handles
customer authentication and offers a range of benefits for SaaS companies. Whether you
provide a public sign-up or not, passkeys can help to improve user experience, enhance
security, and boost your [conversion rate](https://www.corbado.com/blog/logins-impact-checkout-conversion). They
are the most efficient and effective authentication method available and passkey
authentication solutions from [passkey providers](https://www.corbado.com/blog/passkey-providers), like Corbado,
can be tailored to your specific needs and requirements. Therefore, your company should
[transition to passkeys](https://www.corbado.com/blog/user-transition-passkeys-expert-strategies) authentication
as soon as possible.

## Frequently Asked Questions

### Why should a SaaS company adopt passkeys even if it already offers SSO login?

SSO covers enterprise accounts but smaller companies and freelancers still rely on
traditional 2FA, which has only a 12-15% activation rate. Passkeys are inherently active
2FA for every user and require no additional app or device, closing the security gap that
SSO alone cannot address.

### How do passkeys protect SaaS users from phishing and credential-based attacks?

Passkeys rely on public-key cryptography and are generated and stored on the user's
device, meaning they cannot be extracted or stolen. This approach prevents not only
phishing but also credential stuffing and brute force attacks, eliminating the attack
vectors that passwords create.

### What business case can I make internally for adding passkeys to our SaaS product?

79% of users stop trusting a website after a data breach is made public, directly damaging
sign-up rates and long-term retention. Additionally, major platforms like PayPal, eBay and
Kayak have already deployed passkeys, meaning early adoption signals competitive
differentiation and demonstrates a commitment to data-centricity.

### How does passkey autofill improve the login experience compared to traditional password managers?

Passkey autofill pre-fills both the username and the credential automatically, so users no
longer need to remember the email address they registered with. This removes a common
source of login abandonment and makes returning to a SaaS product frictionless across
sessions.