---
url: 'https://www.corbado.com/faq/passkeys-cost-savings-enterprise-security'
title: 'How do passkeys contribute to cost savings in enterprises?'
description: 'Learn how passkeys reduce costs in enterprise security by eliminating SMS OTPs, minimizing support needs, and reducing account recovery expenses.'
lang: 'en'
keywords: 'passkey cost savings, enterprise security savings, reduce SMS costs passkeys, cost-efficient authentication'
---

# How do passkeys contribute to cost savings in enterprises?

## How Do Passkeys Contribute to Cost Savings in Enterprise Security?

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.

### Key Areas of Cost Savings

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](https://www.corbado.com/faq/sms-based-authentication-explained), leading to
      substantial savings, especially in
      [large-scale](https://www.corbado.com/blog/introducing-passkeys-large-scale-overview) 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](https://www.corbado.com/glossary/phishing)-resistant nature reduces the likelihood of
      credential-based attacks like [phishing](https://www.corbado.com/glossary/phishing) or
      [credential stuffing](https://www.corbado.com/glossary/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.

### Example of ROI from Passkey Adoption

**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](https://www.corbado.com/blog/passkey-implementation-cost-fte): $500,000
  (one-time).
- Savings: Immediate reduction in SMS expenses and ROI achieved within the first year.

### Long-Term Benefits

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.

## Read the full article