---
url: 'https://www.corbado.com/faq/how-can-enterprises-measure-roi-of-passkeys'
title: 'How can enterprises measure the ROI of adopting passkeys?'
description: 'Discover how enterprises can calculate the return on investment (ROI) of adopting passkeys for authentication.'
lang: 'en'
keywords: 'measuring passkey ROI, cost savings with passkeys, passkeys return on investment'
---

# How can enterprises measure the ROI of adopting passkeys?

## How Can Enterprises Measure the ROI of Adopting Passkeys?

Enterprises can evaluate the return on investment (ROI) of adopting passkeys by analyzing
both the cost savings and the long-term benefits. Here’s a step-by-step guide to
calculating ROI:

### 1. Cost Savings

- **Reduced SMS OTP Expenses**: Calculate the reduction in
  [SMS authentication costs](https://www.corbado.com/faq/sms-traffic-pumping-impact), which can decrease by up to
  **90%** with passkeys.
- **Lower Account Recovery Costs**: Measure savings from reduced customer support tickets
  related to [password resets](https://www.corbado.com/faq/passkeys-reduce-password-resets-otp-costs) or failed
  SMS deliveries.
- **Fraud Prevention**: Quantify the financial impact of reduced
  [phishing](https://www.corbado.com/glossary/phishing) and [credential stuffing](https://www.corbado.com/glossary/credential-stuffing)
  attacks, which passkeys mitigate.

### 2. Operational Efficiency

- **Fewer Support Interventions**: Assess the decrease in support team workload for
  account recovery and troubleshooting authentication issues.
- **Faster Logins**: Evaluate the time saved in user authentication, especially for large
  user bases, and its impact on productivity and user satisfaction.

### 3. Increased User Retention and Conversion

- **Improved UX**: Enhanced login experiences lead to higher user retention rates,
  reducing churn and increasing revenue.
- **Seamless Onboarding**: A simplified authentication process can boost new user sign-up
  rates, directly contributing to growth.

### 4. Regulatory Compliance Benefits

Avoid penalties and fines by meeting
[cybersecurity regulations](https://www.corbado.com/blog/cyber-security-compliance) such as
[NIST](https://www.corbado.com/blog/nist-passkeys), **GDPR**, and Essential Eight, which mandate strong
authentication methods like passkeys.

### 5. Long-Term Financial Gains

- **Customer Trust and Loyalty**: Improved security and UX build trust, resulting in
  long-term customer loyalty and increased lifetime value.
- **Scalability and Adaptability**: Passkeys integrate seamlessly with evolving
  technologies, reducing future migration costs.

### Calculating ROI

To calculate ROI:

1. Add the total savings (e.g., reduced SMS costs, fewer support interventions).
2. Include revenue gains from increased user retention and conversion.
3. Subtract the initial implementation cost of passkeys.
4. Divide the net benefit by the implementation cost to determine ROI.

## Read the full article