---
url: 'https://www.corbado.com/faq/passkeys-reduce-password-resets-otp-costs'
title: 'Do passkeys truly reduce password resets and OTP usage?'
description: 'Discover how offering passkeys significantly reduces password resets and OTP usage, directly translating into substantial operational cost savings.'
lang: 'en'
keywords: 'password resets, reduce OTP usage, enterprise passkey benefits, authentication cost reduction'
---

# Do passkeys truly reduce password resets and OTP usage?

## Does offering passkeys truly reduce password resets and OTP usage, generating substantial cost savings?

Yes, adopting passkeys demonstrably reduces **password resets** and reliance on OTP
(one-time password) methods, leading to substantial operational cost savings for
enterprises.

## How Passkeys Reduce Password Resets

Password resets are among the most frequent and costly helpdesk requests for enterprises.
Passkeys directly mitigate this issue:

- **Elimination of Passwords**: Passkeys rely on
  [biometric authentication](https://www.corbado.com/blog/passkeys-biometric-authentication) or secure
  device-based credentials, eliminating the need for users to manage, forget, or reset
  traditional passwords.
- **Fewer Helpdesk Calls**: With fewer forgotten passwords, organizations report
  significantly reduced helpdesk volume, allowing IT support teams to focus on more
  critical tasks.

## Reducing OTP Reliance

Traditional OTP methods incur considerable operational expenses due to SMS charges,
email-based costs, or hardware token management. Passkeys dramatically reduce these
recurring costs:

- **Secure Single-Step Authentication**: Passkeys provide
  [phishing](https://www.corbado.com/glossary/phishing)-resistant, one-step authentication without the need for
  additional OTP verification, significantly decreasing per-login expenses.
- **Reduction of Ongoing Expenses**: Enterprises that adopted passkeys—such as Amazon,
  Google, and Microsoft—experienced considerable decreases in OTP-related costs by
  eliminating the ongoing expenses associated with SMS and hardware tokens.

## Quantifiable Cost Savings

Enterprises adopting passkeys have demonstrated substantial cost savings:

- Significant reduction in IT helpdesk calls related to **password resets** (often by
  40–60%).
- Major cuts in OTP operational costs, typically 50% or more, starting immediately after
  passkey implementation.

In conclusion, offering passkeys not only reduces **password resets** and OTP usage but
translates directly into measurable and substantial cost savings, making passkeys a
financially compelling authentication strategy.

## Read the full article