---
url: 'https://www.corbado.com/faq/how-do-passkeys-reduce-operational-costs'
title: 'How do passkeys reduce operational costs for organizations?'
description: 'Discover how passkeys help organizations reduce operational costs while improving security and user experience.'
lang: 'en'
keywords: ' passkeys reduce costs, operational savings with passkeys, passkeys vs SMS OTP costs, cost-effective authentication'
---

# How do passkeys reduce operational costs for organizations?

## How Do Passkeys Reduce Operational Costs for Organizations?

Passkeys are not only a secure and
[user-friendly authentication](https://www.corbado.com/faq/passkey-user-experience-benefits-non-technical-audience)
method but also a cost-effective solution for enterprises. Here’s how they reduce
operational costs:

### 1. Eliminating SMS OTP Expenses

- SMS OTPs come with per-message fees, especially for international users. Passkeys remove
  this dependency, reducing authentication costs significantly.
- Enterprises can save up to **90%** of SMS-related expenses by transitioning to passkeys.

### 2. Lowering Account Recovery Costs

- Traditional account recovery methods, such as phone or email verification, are
  labor-intensive and require support staff.
- Passkeys streamline recovery through automated cloud-based solutions, reducing the need
  for costly manual interventions.

### 3. Reducing Fraud Costs

- Passkeys are immune to common attack vectors like **phishing** and **credential
  stuffing**, which can lead to costly breaches.
- Eliminating these [vulnerabilities](https://www.corbado.com/glossary/vulnerability) reduces financial losses
  from fraud and data breaches.

### 4. Decreasing Customer Support Workload

- Issues like failed SMS deliveries or forgotten passwords generate support tickets,
  increasing operational overhead.
- Passkeys provide a seamless login experience, significantly reducing the volume of
  support requests.

### 5. Efficient Onboarding and Authentication

- Passkeys simplify the authentication process with device-based biometrics or PINs,
  speeding up user logins and reducing friction.
- This efficiency enhances user satisfaction while lowering abandonment rates, indirectly
  benefiting the organization’s bottom line.

### 6. Long-Term Cost Benefits

By adopting passkeys, organizations achieve a sustainable reduction in operational costs
while improving security, user experience, and compliance. This makes passkeys an ideal
investment for cost-conscious enterprises.

## Read the full article