For decades, passwords have acted as the primary barrier to unauthorised access, says HID in a recent blog on its website. However, a more secure and efficient approach has emerged: passwordless authentication.

Compared to traditional passwords, passwordless authentication offers a safer, more user-friendly way to access systems and applications. This is especially useful as data breaches become more common and threaten to expose sensitive information.

Why the shift? Passwords are inherently flawed. Many users rely on weak passwords or reuse the same credentials across multiple accounts, leaving them vulnerable to breaches. And phishing attacks, where malicious actors trick users into revealing their passwords, are alarmingly common.

Consider these staggering statistics:

• The average person manages 255 total passwords — 87 for work purposes
• Weak, reused or stolen passwords accounted for 81% of confirmed breaches
• The average total cost of a data breach is $4.88 million

To avoid this, more and more organizations are adopting passwordless authentication. Read on to explore what passwordless authentication is, its benefits and its relevance across industries.

What Is passwordless authentication?

Passwordless authentication is an approach to secure access that doesn’t rely on traditional passwords. Instead, it uses alternative methods like FIDO, PKI or biometrics that are significantly more secure and convenient.

Unlike traditional methods, passwordless authentication ensures users don’t have to remember or manage passwords. This reduces the risk of credential-based attacks and enhances the overall security posture of organizations. For example, employees can use fingerprint scanners to log into workstations or secure areas.

Types of passwordless authentication

As organisations move toward enhancing security and user convenience, passwordless authentication has gained traction as reliable alternatives to traditional passwords.

Here are four passwordless methods that cater to various security requirements and user experiences.

1. FIDO

Built on the FIDO2 standard, Fast Identity Online (FIDO) credentials or passkeys leverage public key cryptography for passwordless authentication on desktops, websites and applications.

Organizations can choose how and where passkeys are deployed — they can be integrated as passkeys in users’ mobile phones, as security keys and smart cards, or as integrated platform authenticators when available.

2. PKI

Public key infrastructure (PKI) relies on a pair of cryptographic keys to protect authentication. In this system, the public key is shared openly, while the private key stays secure and hidden.

A network of trusted certificate authorities (CAs) manages and issues digital certificates, which confirm the identities of users, devices or organizations. During authentication, the public key checks a digital signature created with the private key, ensuring the authenticity of the entity trying to access the system. 

As with FIDO, these cryptographic keys can also be stored in security keys and smart cards.

3. Biometrics

Biometrics use unique physical traits such as fingerprints, facial recognition or voice patterns to verify identity.

Devices like smartphones, laptops and specialized scanners commonly use biometric methods to provide a seamless and highly secure log-in experience. This approach is especially popular for personal devices and high-security environments.

4. Push notifications

Push notifications deliver actionable alerts to a registered device, prompting users to approve or deny log-in attempts.

By ensuring that only pre-authorized devices receive these notifications, this method combines simplicity with robust security, making it an excellent choice for remote access, cloud services and enterprise applications.

Industries that are prioritising passwordless authentication

Passwordless authentication enhances security and user experience while addressing sector-specific challenges. Here are eight major industries where passwordless authentication is becoming more commonplace.

1. Finance & Banking

Fintech companies and banks rely heavily on secure authentication methods to protect financial data and prevent cyberattacks.

Mobile banking apps frequently use biometrics, such as fingerprint or facial recognition, or push notifications to authorise transactions. These methods protect sensitive customer information and provide a frictionless user experience, which helps reduce the risk of phishing and fraud.

2. Healthcare

Hospitals are another key adopter of passwordless authentication, particularly in environments with shared workstations.

For instance, doctors and nurses often use biometric log-ins to quickly and securely access electronic health records (EHRs). This approach ensures compliance with regulations like HIPAA while protecting sensitive health data.

3. Technology & IT

Software development and IT consulting companies employ passwordless authentication to secure their intellectual property and critical systems.

Developers, for example, often use hardware security keys to access code repositories and other sensitive resources. As a result, passwordless authentication ensures robust protection against unauthorized access.

4. Retail & eCommerce

Retail stores and eCommerce platforms use passwordless authentication to enhance the customer experience while preventing account takeover fraud.

Customers often log into online stores using OTPs for easier access without compromising security. By safeguarding user data during transactions, retailers can build customer trust and loyalty.

5. Government & defence

Government agencies and defense departments prioritize national security, and passwordless methods like smart cards and biometrics are commonly used to grant employees access to classified systems and data. These methods ensure that only authorized personnel can access critical resources, providing strong protection against espionage and data breaches.

6. Education

Educational institutions like universities and colleges use passwordless authentication to simplify access to online learning portals and protect academic data.

Students and staff often use biometric authentication to log in, which reduces the administrative burden of managing forgotten passwords while maintaining secure access to educational resources.

7. Manufacturing & industrial

Manufacturers and factories need to protect operational technology systems. That’s why workers frequently use hardware tokens or smart cards to access secure systems and machinery. This helps to protect intellectual property and prevent unauthorised access to critical operations.

8. Legal & professional services

Law firms, accounting firms and other professional service companies use passwordless authentication to secure sensitive client files and comply with privacy regulations.

For instance, lawyers may use biometrics or push notifications to access case documents and communication platforms. This approach ensures client confidentiality while providing seamless access to critical resources.

The blog also covers the benefits and advantages of passwordless authentication, the challenges and considerations, and the future of passwordless authentication, including market growth forecast, and more.

Click here for the full blog, where you can also use HID’s ROI calculator to see how much you can save with passkeys.

For more HID news, click here