Guide: How to Add Passkeys to Enterprise Systems

Introduction: The Evolution of Consumer Authentication

For years, enterprises faced the challenging trade-off between security and user experience in consumer authentication. Traditional multi-factor authentication (MFA) methods, like passwords combined with SMS-based one-time passcodes (OTPs), often compromised on one to improve the other. Passkeys, however, are reshaping authentication by offering a user-friendly, phishing-resistant solution for large-scale consumer deployments.

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The Need for Passkeys in Large-Scale Deployments

Organizations with vast user bases — ranging from government services to financial institutions and healthcare providers — are increasingly adopting passkeys to ensure a secure and seamless user experience. These sectors are heavily regulated and require robust security mechanisms without sacrificing user convenience. Introducing passkeys into existing consumer authentication systems can address key pain points such as phishing, high SMS costs, and inefficient account recovery.

Key Challenges in Traditional MFA Systems

1. Phishing Vulnerabilities

MFA systems relying on SMS OTPs are prone to phishing attacks, where attackers trick users into entering their passwords and OTPs on fake websites. This risk has persisted despite the use of traditional MFA methods, and passkeys offer a secure solution by eliminating shared secrets vulnerable to interception.

2. High SMS Costs

Large-scale deployments face significant operational costs due to the reliance on SMS-based OTPs. With millions of users, SMS fees can add up quickly, making this method costly and less practical over time.

3. Account Recovery Difficulties

Recovery of accounts linked to phone numbers can be complex when users change numbers, leading to increased customer support costs and operational challenges. Passkeys, integrated with cloud services, provide a more reliable and secure recovery method that reduces these issues.

How Passkeys Solve MFA Challenges

Phishing Resistance

Passkeys are bound to specific domains, ensuring they cannot be used on phishing websites. This security is further enhanced by public-key cryptography, which ensures that only the public key is stored on the server, while the private key remains secure on the user’s device.

Cost Efficiency

By eliminating the need for SMS OTPs, passkeys help organizations significantly cut down on operational costs. This shift not only reduces fees but also mitigates the risk of SMS fraud, which can further inflate costs.

Streamlined Account Recovery

With passkeys, recovery becomes more efficient as users are less likely to lose access to their credentials. Cloud synchronization across devices provides a seamless recovery process, reducing customer support demand and associated costs.

Best Practices for Passkey Implementation

To ensure a successful transition to passkeys, organizations should follow a structured multi-step approach:

• Initial Planning & Device Compatibility: Analyze device readiness to ensure users can adopt passkeys without issues. Most modern devices already support passkeys.
• Stakeholder Engagement: Collaboration across internal departments, from compliance to product teams, is essential to ensure a smooth rollout.
• UX Design: Creating intuitive authentication flows that cater to both tech-savvy and less experienced users is key to boosting adoption.
• Integration with Existing Systems: Passkeys can be integrated into existing authentication infrastructures with minimal disruption. A gradual rollout strategy ensures a smooth transition, beginning with newer devices.

Conclusion

For a deeper dive into how to introduce passkeys into a large-scale B2C system and ensure maximum adoption, find out more on our blog.