By Jose Caso

Passwords are a bane for every business that cares about security. Once seen as a reliable and secure way to authenticate users, passwords have long since outlived their usefulness, becoming more of a hindrance than a help. The relentless cycle of resetting them and the complex, hard-to-remember combinations that systems and sites insist on, have all added unnecessary business risk and made the user experience annoying and cumbersome. 

Password reuse is also rife across personal and corporate accounts—and with cybersecurity evolving faster than ever, businesses can’t afford to rely on ineffective methods. Passwords were showing their age—the time was ripe for passwordless authentication.

Why Passwordless, and Why Now?

A few key drivers are fueling this transition to passwordless solutions:

Phishing and Credential Theft

Phishing is often how bad actors get their foot in the door. Amplified by AI, phishing simply works, and it’s not going anywhere. Passwords are the first prize for fraudsters because one stolen set of credentials can give them full access to a system. However, you can’t phish a fingerprint. There’s nothing to steal or guess—it’s like upgrading from a padlock to a bank vault.

Password Reset and Breach Costs Are Climbing

If your IT team spends half its time helping people reset their passwords, you’re not alone. The costs start mounting, from lost productivity and helpdesk time to the fallout of security events caused by reused or weak passwords. Switching to passwordless authentication tightens security and cuts a ton of everyday headaches.

Regulatory Pressure is On

Anyone operating in a regulated industry (that’s most of us these days) will have noticed how the compliance bar keeps rising.  Mandates like GDPR, PCI-DSS, and the new NIS2 directive are making it clear: stronger authentication isn’t optional anymore, and passwords no longer make the cut.

Users Are Over It

Consumers today expect smooth, no-fuss digital experiences. According to the Thales Consumer Digital Trust Index 2025, passwords are a major source of friction. People tire of creating (and forgetting) complex logins and having to reset them, and are abandoning brands that make authentication an onerous process. If you’re still making customers jump through outdated password hoops, don’t be surprised when they bounce to someone offering a smoother process.

The Benefits for Businesses

The user benefits are clear, but why should businesses consider switching to passwordless solutions? Let’s take a look:

1. Improved Security: One main advantage of passwordless is that it shrinks the attack surfaces. Without passwords, threat actors have nothing to steal or phish. Biometrics and hardware-based tokens are far more difficult to compromise than a password, which can be guessed, brute-forced, or stolen through phishing or data breaches.
2. Better User Experience: Frustrating password resets become a thing of the past. No longer will users find themselves overwhelmed by personal compliance. Passwordless authentication lets employees, customers, and partners access systems faster and with none of the usual barriers. 
3. Cost Savings: Passwordless authentication helps save time and costs related to account recovery and IT support—users won’t have to wrestle with forgotten passwords or locked accounts, fewer helpdesk tickets, and less frustration overall
4. Scalability: Passwordless authentication is highly scalable and perfect for large or distributed teams. With more companies going hybrid and remote, being able to secure from anywhere isn’t a convenience—it’s a necessity. Passwordless authentication makes it easy to ensure people and systems without adding friction, even as teams grow.

Industry Adoption and Use Cases

Passwordless authentication is gaining popularity. 90% of SaaS providers now support passkeys, a login method that lets users sign in with their device’s unlock method—a fingerprint, PIN, or pattern—rather than having to use a password, by linking their account to a website or app. The convenience offered by passwordless solutions like passkeys is demonstrated by the level of user adoption: 53% have enabled passkeys on at least one of their accounts.

Here’s how different industries are benefiting from passwordless authentication: 

Banks and other financial entities were early adopters of passwordless authentication because they handle a lot of sensitive data and needed to protect themselves and their customers from fraud. Passwordless systems allow their customers to access their accounts securely and easily without the usual risks and hassles of managing and remembering passwords. 

Medical and healthcare practitioners need easy and safe access to Electronic Health Records (EHRs) so they can deliver patient care without delay. Passwordless solutions streamline this process and help them maintain robust security while limiting the need for frequent password changes.

Implementation Considerations

Moving to passwordless authentication offers significant security and user experience benefits—but it also requires thoughtful planning to ensure a smooth rollout. Key considerations include:

1. Seamless Integration with Existing IAM Systems

Passwordless authentication must be compatible with your current identity and access management (IAM) infrastructure. This includes supporting federation protocols, aligning with existing policies, and integrating with user directories and access controls. While some legacy systems may need upgrades, choosing a solution that fits within your architecture minimizes disruption and accelerates time to value.

2. Cross-Platform and BYOD Support

A modern authentication strategy must support diverse environments—including BYOD (Bring Your Own Device) scenarios—without compromising security. Passwordless solutions should function consistently across platforms (Windows, macOS, iOS, Android, etc.), browsers, and device types. This ensures that users can securely authenticate from any device, whether managed or personal, improving flexibility without introducing risk.

3. Support for Multiple Authentication Journeys

Not all users are the same—and your authentication flows shouldn’t be either. Support for multiple user authentication journeys is essential to address varying risk profiles, device types, and usage scenarios. Whether it’s biometric authentication on mobile, hardware tokens for contractors, or adaptive access for privileged users, the solution should offer a range of passwordless options tailored to user needs and roles.

It’s Time to Move Beyond Passwords

While the password isn’t dead, it must start putting its affairs in order. Passwordless authentication offers a more secure, user-friendly, and cost-effective way to address the authentication issues businesses face today. As more industries adopt this technology, the question isn’t if you should make the switch—it’s when.

Jose Caso, B2B IAM at Thales, is a seasoned product professional with over 15 years of experience in software development, product management, and product marketing. He specializes in aligning technical and business goals to deliver solutions that meet evolving client needs. With a background spanning physical security, cybersecurity, and enterprise solutions, Jose focuses on driving innovation that keeps businesses competitive in a dynamic market.