Passwords and passkeys sound like they would be exactly the same, but unbeknownst to many outside of the identity management space, they possess some profound differences.
Most business applications, services and tools require users to log in before they can be granted access. The methods for this verification can vary, with the most commonly used authentication method being the traditional password.
Passwords have historically been the primary method for verifying a user’s identity. However, as digital identity management has become more layered, and with cybercrime proliferating to worrying levels, these don’t offer sufficient protection on their own anymore. Passkeys, conversely, have emerged as an alternative solution, which many believe is superior to the standard username and password combination.
As enterprises scale their operations and their security requirements become more complex, it’s worth breaking down the differences between these two methods to ensure complete clarity. This helps organizations make more informed decisions about their identity management infrastructure and processes, and maintain a good security posture.
Modern Passwords at a Glance
Passwords have existed for a long time, primarily consisting of a user’s memorable word or phrase, numbers and symbols, that they use to verify their identity. As user authentication becomes a necessity for multiple different logins and applications, it’s common for users to reuse passwords, and it doesn’t help that they are invariably considered ‘weak’ nowadays.
Over the last few years, this has come to pose a cybersecurity challenge, even when managed through enterprise-level password management solutions. Passwords can be cracked if not complex enough, and are susceptible to phishing, brute-force and server-side cyber-attacks.
The human factor complicates password security further. Users frequently struggle with password fatigue, often leading to predictable behaviors such as rarely updating credentials or recycling passwords with minor changes. This behavior creates predictable patterns that attackers can exploit via calculated, sophisticated vectors, a problem demonstrated by Microsoft's identity attack data which shows that password-based attacks make up over 99% of daily identity attacks.
Statistically, password management is a costly endeavor. Medium-sized businesses with 5,000 employees can spend over $1 million every year on password-related issues, and IT support staff often spend approximately 30-50% of their time resetting credentials.
What Are Passkeys?
Passkeys are difficult to define simply, but they are fundamentally different. They are a new type of credential consisting of two separate cryptography keys (a public key registered with the application or website, and a private key stored locally on the user’s device). These keys must be paired to grant access.
When a user attempts to log in, their device proves possession of the private key without transmitting it across the network. The authentication process usually involves biometric verification through fingerprint or facial scanners, or device PINs, which can be as seamless as using an auto-generated password generation solution.
Since the private key never leaves the user’s device, and authentication relies on the alignment of specific domains, it’s harder to phish this process. Attackers can’t intercept or steal what’s never been transmitted, and passkeys can’t be replicated across fraudulent websites.
Differences Between Passkeys and Passwords
It should be easy to distinguish between these two solutions, but the essential differences are summarized below.
- Passwords are unique strings of alphanumerical characters, whereas passkeys are cryptographic keys generated by a specific system.
- Passkeys are individualized by default, while users decide how complex passwords are.
- Passwords are stored on servers or databases, while passkeys consist of one public, server-side key and a private key stored on the user’s device.
- Passkeys provide a dual-key authentication system, while passwords vary based on complexity.
- Users can change passwords but managing passkeys often requires special software.
Why the Choice Matters: Risk and Compliance
For organizations overseeing highly sensitive data and information, or balancing complex security requirements, the authentication method they choose directly affects their overall posture. Data breaches can spell disaster for companies, costing them dearly in damage to both their finances and reputations. Not only is the average cost of a data breach $4.4 million, based on the IBM Cost of a Data Breach Report 2025, but another recent study found that 75% of U.S. consumers would stop purchasing from a brand if it suffered a cyber incident. This loss of confidence correlates directly to a business’s bottom line. Organizations operating in highly regulated sectors like healthcare, finance and insurance are bound by stringent regulations on customer data protection.
When businesses share sensitive information with outsourced virtual assistants, managed service providers, distributed teams or sole contractors, robust access control policies become even more important. One breach can grant a malicious actor access to a plethora of connected systems and logins, so this must not be overlooked.
Integration with PKI and Certificate-Based Authentication
Understanding how passkeys and passwords fit within an organization’s broader identity infrastructure unveils important considerations for enterprise-level deployment. Both methods can integrate with Public Key Infrastructure (PKI), but in distinct ways.
Passkeys naturally align with PKI principles, relying on cryptographic key pairs similar to those used in digital certificates. Organizations already using certificate-based authentication for secure communications or document verification will find passkeys complementary to their existing security architecture.
Password-based systems can integrate with PKI through protocols like SAML, OAuth 2.0, and OIDC, enabling single sign-on (SSO) processes. Certificate-based trust relationships can be cultivated between identity providers and service applications, allowing organizations to enforce centralized authentication policies across their estates.
For enterprises managing complex certificate ecosystems, the choice between passkeys and passwords intersects with questions about automated certificate provisioning, rotation, and revocation. Implementing passkeys requires similar considerations around lifecycle management, so it’s prudent to ask:
- How are keys provisioned to new devices?
- What happens when devices are lost or compromised?
- How do organizations maintain audit trails of authentication events?
Fundamental Factors to Consider
Passkeys are generally considered more secure than passwords, given that they don’t need to be memorized, manually created, or changed regularly. Modern password management protocols mandate minimum character lengths and requirements for each password to satisfy security hygiene and policies, to the point where not only is it nearly impossible for users to memorize, but it invariably needs to be changed regularly.
Passkeys are generated automatically using cryptography, splitting credentials into two key parts that don’t work in isolation. So in case an attacker somehow seized your public key, that proves useless without the corresponding private key.
Major companies like Google, Microsoft, Apple and Amazon are working in tandem with organizations like the FIDO Alliance to encourage greater passkey implementation across platforms, suggesting that leaders in this space view passkeys as inherently safer.
Where does this leave enterprise decision-makers evaluating their authentication strategies? Time and resources must be spent determining:
- Whether their customer and supplier base can effectively migrate from username-password combinations to passkey-based authentication
- Which applications can support passkeys
- A realistic migration timeline
- Whether their chosen authentication approach or approaches support relevant industry standards like GDPR, HIPAA, PCI-DSS, and other sector-specific frameworks
- A business’s incumbent risk exposure, breach history and threat level, via a third-party engagement with cybersecurity specialists
- An internal IT team’s capacity to manage whichever authentication system is deployed and whether additional resources are required
Taking the Next Logical Step for Enterprise Authentication
Authentication remains an evergreen necessity and obstacle for enterprises managing increasingly volatile and valuable data, and in growing quantities. The cyber threat landscape is, however, evolving at an unprecedented rate, meaning that organizations, regardless of their risk profile, must deploy robust protection methods if they are to uphold any kind of data integrity.
Passwords remain essential, but the movement to deploy passkeys en masse is gaining momentum, and it’s hard to dispel their worth as a baseline cybersecurity initiative. Organizations that consider, evaluate and plan widespread passkey implementation will be in a strong position to harness this technology as adoption accelerates, and more open-source technologies inevitably warrant them as a minimum method of access.
Authentication is, however, one component of an otherwise multi-layered security architecture. Consider how authentication integrates with and supports wider identity management, access control, certificate infrastructure and compliance requirements. Recognizing that security results from multiple layers of defense, rather than siloed functions, will be the most effective ethos to adopt.
For businesses managing digital identities at scale, the question is less about choosing between passkeys and passwords and more about developing authentication strategies that align with organizational risk tolerance, user needs, technical proficiency and compliance. Whether implementing passkeys, maintaining robust password management, or adopting a hybrid approach, the goal remains the same: secure access that protects both the organization and its users and customers must be the top priority.
Note: This blog article was written by a guest contributor for the purpose of offering a wider variety of content for our readers. The opinions expressed in this guest author article are solely those of the contributor and do not necessarily reflect those of GlobalSign.
