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Passkeys are redefining authentication, offering a frictionless, highly secure alternative to passwords. Major enterprises, from e-commerce platforms to financial institutions, are adopting passkeys to improve user experience (UX), reduce costs, and eliminate password-based fraud. However, many implementations fail — not due to technical limitations but because of poor adoption strategies.
In this article, we break down why passkey implementations struggle and how to ensure a smooth transition to passwordless authentication.
Why Enterprises Are Adopting Passkeys
Passkeys provide several key benefits for enterprises:
- Improved UX and Higher Revenue — Passkeys reduce login friction, leading to higher conversion rates and customer retention, particularly for e-commerce and transaction-heavy businesses.
- Stronger Security with Lower Costs — Companies relying on SMS OTPs for authentication can significantly cut costs by replacing them with passkeys.
- Phishing-Resistant Authentication — Financial institutions and security-sensitive industries leverage passkeys to prevent credential-based attacks like phishing and credential stuffing.
Despite these benefits, a passkey rollout is not just about adding WebAuthn support — it requires a well-planned adoption strategy.
The Four Phases of a Successful Passkey Rollout
Phase 1: Implementation — Laying the Technical Foundation
The first step is integrating passkeys into your authentication system. However, enterprises face different challenges depending on their current infrastructure:
- Custom Authentication Systems — Require deep expertise in WebAuthn and device compatibility.
- Hybrid Systems (IDP Backend & Custom Frontend) — Need careful handling of frontend passkey logic to maintain compatibility across browsers.
- Fully Managed IDP Solutions (e.g., Okta, Auth0) — Require vendor support or third-party solutions to enable passkey authentication.
Phase 2: Adoption — The Key to Success
Merely enabling passkeys isn’t enough — getting users to adopt them is the real challenge. Enterprises often underestimate how deeply ingrained password habits are. To increase adoption rates, companies must:
- Educate Users — Clearly communicate the benefits of passkeys and guide users through enrollment.
- Optimize UX — Ensure frictionless onboarding with clear messaging and fallback options.
- Monitor Adoption Metrics — Track passkey adoption, fallback rates, and login behaviors to refine the experience.
Without strong adoption, passkeys remain an underutilized feature rather than a true password replacement.
Phase 3: Going Passwordless — Turning Off Passwords
Once passkeys reach a critical adoption rate, the next step is eliminating passwords altogether. This phase requires:
- Gradual Rollout — Phasing out passwords in low-risk scenarios first, ensuring a smooth transition.
- Regulatory Compliance — Aligning passwordless authentication strategies with industry regulations (e.g., PSD2).
- Security Controls — Managing passkey synchronization and enforcing multi-device authentication policies.
Phase 4: Automating Recovery — Preventing Lockouts
A common concern is what happens if users lose their passkeys. Enterprises must implement robust fallback and recovery methods, including:
- Cross-Device Recovery — Allowing users to regain access through trusted devices.
- Biometric Verification — Implementing selfie-based liveness checks for secure identity verification.
- Monitoring and Alerts — Detecting anomalous login attempts to prevent fraud.
A well-designed recovery strategy ensures that passkeys remain viable even in worst-case scenarios.
Why Most Passkey Implementations Fail
Many enterprises assume that simply enabling passkeys is enough. However, failure to plan for adoption, password removal, and fallback mechanisms leads to poor outcomes:
- Users stick to passwords — Without guidance, users continue defaulting to passwords, negating the benefits of passkeys.
- Costs remain high — Authentication expenses (e.g., SMS OTPs) persist if passkeys aren’t widely used.
- Security risks remain — Passkeys only improve security if they replace passwords entirely.
How to Ensure a Successful Passkey Strategy
Corbado simplifies the transition to passkeys with:
- Seamless Passkey Integration — Backend SDKs, frontend components, and IDP compatibility.
- Optimized User Experience — UX design tailored to drive passkey adoption.
- Analytics & Monitoring — Real-time tracking of adoption rates and fallback scenarios.
- Automated Recovery & Compliance — Secure fallback flows to maintain a frictionless experience.
A strategic approach to passkey adoption ensures high conversion rates, lower costs, and improved security.
Find out more about optimizing your passkey implementation here: Corbado Blog.
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