Enterprise adoption of passkeys is gaining significant momentum across the United States and United Kingdom, according to a new report from the FIDO Alliance. The research reveals that 87 percent of surveyed organizations have either deployed or are actively implementing passkey authentication solutions – a 14 percentage point increase since 2022.
The comprehensive study, titled “The State of Passkey Deployment in the Enterprise,” surveyed 400 decision-makers from companies with over 500 employees, building on earlier predictions of widespread passkey adoption in 2025.
Organizations are implementing passkeys through a mixed approach, with 82 percent deploying both device-bound and synced options. The primary drivers for adoption include improved user experience (57 percent), standards compliance (55 percent), and mitigating data breach risks (50 percent). This follows a broader industry trend, as demonstrated by Visa’s recent implementation of passkeys for online payment authorization.
The impact of passkey adoption has been substantial, with 90 percent of respondents reporting moderate to strong improvements in security. Additionally, 82 percent noted positive effects on user experience, while 77 percent observed a reduction in help desk calls. The technology has also contributed to improved employee productivity for 73 percent of organizations.
Following passkey implementation, organizations reported significant decreases in traditional authentication methods. Password usage dropped from 76 percent to 56 percent, while email one-time passwords declined from 55 percent to 39 percent. This shift represents a major evolution from earlier FIDO Alliance efforts to reduce password-based authentication.
However, challenges remain for organizations yet to adopt passkeys. The primary barriers include implementation complexity (43 percent), cost concerns (33 percent), and shared workstation usage (31 percent). Notably, only 4 percent of non-adopters express satisfaction with their current authentication methods.
Education and training have emerged as crucial factors in successful passkey deployment, with 90 percent of respondents emphasizing their importance. Most organizations (73 percent) use a combination of FIDO Alliance materials and internal documentation for user training.
The findings suggest that while passkey adoption is accelerating, continued education and support will be essential for broader enterprise implementation. FIDO Alliance CEO Andrew Shikiar detailed his organization’s passkey efforts in an appearance on the ID Talk podcast last year.
Source: FIDO Alliance
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February 27, 2025 – by Cass Kennedy
