Passkeys vs. other authentication methods: what’s the difference?

Passkeys vs. other authentication methods: what’s the difference?

Are you still using the same password from high school? Join the club: up to 51% of passwords are reused. And while you might think that hackers can’t decode your locker combination from ninth grade or guess the name of your first pet, chances are your password credentials are pretty predictable. 

At a time when weak passwords are responsible for over 80% of data breaches, those slight variations of your and your customer’s long-time credentials put your entire organization at risk. 

Fortunately, we’re not in high school anymore, and passwordless authentication methods have been available for quite some time. Passkeys, a passwordless method that eliminates reliance on rinse-and-repeat credential combinations, are now on the rise. Here’s what you need to know about passkey vs. password authentication.

Different methods of authentication

Just about every network, organization, server, system, and website in the world now requires some form of authentication, like a password, for access. Though these methods were designed to protect resources and sensitive data, HYPR's 2024 State of Passwordless Identity Assurance study found that 69% of companies were ultimately breached through authentication processes during the twelve months leading up to the report. 

As technology and fraud schemes have progressed, experts have sought new means of authentication that can safeguard consumers and corporations alike. Today, you’ll find several passwordless authentication processes intended to facilitate safer access. 

Take a look at the most popular methods of authentication and how they’ve evolved over time. 

Passwords and PINs 

Passwords and personal identification numbers (PINs) are the oldest and most commonly used authentication methods, but they’re far from the most secure or reliable. Referred to as a type of knowledge-based authentication, passwords require users to remember a specific combination of letters, numbers, and symbols, plus their unique usernames, to receive authentication access. 

Despite their prevalence, passwords are notoriously problematic. Nearly 30% of help desk costs are password related, mainly because consumers frequently forget their character combinations. Likewise, passwords are easy to guess or crack and are vulnerable to phishing and other scams. 

So, it’s no surprise that passwordless authentication methods have been on the rise over the past several years. Passwordless methods have been designed to replace traditional knowledge-based authentication with ownership or possession-based methods of verification, enhancing consumer and corporate security by leveraging newer technologies for authentication access.

Token-based authentication

Token-based authentication (TBA) is a type of single sign-on (SSO) passwordless authentication method that allows users to log in to accounts using a physical device, such as a smartphone, laptop, or smart card. Users verify a set of login credentials, like a username and password, with an identity provider (IdP), and the IdP issues a security token to grant access to authorized resources.

With token-based authentication, users verify their access credentials once for a predetermined amount of time—such as 24 hours—so they can log in to their account without constantly entering a password or PIN.

Tokens make it difficult for hackers to gain unauthorized entry to user accounts, as they would need both physical access to a token and the user’s unique credentials for authentication. However, users must also be responsible for keeping track of their tokens or risk being locked out of their accounts. 

Certificate-based authentication

Certificate-based authentication (CBA) is similar to TBA, but it uses digital certificates to confirm user credentials in lieu of tokens. Digital certificates are electronic papers created with cryptography or coded information. They store what are called private keys, which are mathematically linked to the public keys stored on the account’s server, to grant user access.

Certificate-based authentication has been used by government agencies and other high-security organizations for decades, as it’s highly resistant to phishing and simplifies temporary network access for users like part-time contractors. However, it can be costly and time consuming to deploy. 

Two-factor and multifactor authentication

Two-factor (2FA) first arrived on the scene in 1995 when it was invented and patented by AT&T to protect user accounts. As the name might suggest, 2FA requires users to provide at least one additional authentication factor beyond a standard passcode or PIN. 

Multifactor authentication (MFA) is similar to 2FA but requires two or more factors. Additional factors often include out-of-band authentication, which requires the second factor to be on a different channel from the original device. For instance, verifying smartphone entry via a laptop.

The most common additional authentication factors include a one-time password (OTP) or magic link sent to the user via SMS or email (more on this below). While these methods work to reduce the success of phishing schemes, none are immune to hackers and could add friction to the user experience. 

SMS OTP 

Short Message Service, better known as SMS text messages, is one of the leading passwordless authentication methods. To verify account access, a service sends an OTP—or single-use credentials—via SMS for a user to log in with. In some cases, a user is asked to generate an OTP using an out-of-band method, such as a smartphone application.

SMS OTP has been the go-to passwordless method for decades, and for good reason: it’s the only truly ubiquitous form of 2FA. After all, the vast majority of Americans (97%, to be exact) now own a cell phone, making SMS OTP a simple method of verifying accounts. However, OTPs delivered over SMS are vulnerable to cyberattacks, including phishing, SIM swapping, and message interception.

Email OTPs and magic links

Like SMS OTPs, one-time passwords can also be delivered via email. Aside from OTPs, many industries use email to deliver magic links. Magic links are a type of passwordless authentication method that allows users to log in by entering the email address they used to sign up for the account, and then clicking the link that’s sent to that email address to verify their identity. 

Email OTPs and magic links simplify account access for users and can be used as a method of 2FA or MFA to better protect user information. However, while many industries rely on email-based authentication, it’s also prone to cyberattacks and much easier to hack than other methods.

Biometric authentication

Biometric authentication refers to the automated recognition and verification of users through unique physical traits like fingerprints, facial structures, or eye characteristics. For instance, Apple utilizes Face ID and Touch ID, two types of biometric authentication, to identify users. 

Biometric authentication is often much faster, as it doesn’t require users to remember a password or take multiple steps to receive an OTP. It’s also harder (but not impossible) for attackers to spoof.

What is a passkey? 

All this talk about passwordless authentication brings us to the true champion of PIN-free account access: passkeys. Passkeys were developed as part of Web Authentication (WebAuthn), an open-source credential management API developed by the World Wide Web Consortium (W3C) and Fast Identity Online (FIDO) as a better alternative for securing sensitive information online. 

Instead of a username and password, WebAuthn uses public key cryptography to verify user identities. So how does a passkey work? First, a user’s device will create a unique pair of mathematically related keys to access a service, similar to CBA. One is called the public key, and it’s stored on the service’s server, and the other is called the private key. 

Private keys are securely stored on users’ devices. When a user attempts to log in to that service—or a service that’s related but uses an independent software system—the service will use the public key tied to the user’s account and verify it using the private key stored on the device. The private key is typically accessed via biometric authentication, like facial recognition, or a PIN. 

Because passkeys enable services and devices to verify user identities without any sensitive data or credentials changing hands, there are no details for phishers or cybercriminals to steal. Even if hackers access a public key, there’s no way for them to access an account without the private key.

With passkeys, users do not need to create a new credential for each service or new device. Rather, a user’s passkeys are available whenever they need them, even if they replace their device. Passkeys are currently used by major players in the tech space, including Adobe, Amazon, Apple, Google, Meta, Microsoft, and more. According to FIDO, passkeys result in sign-ins that are up to 75% faster. 

Passkey vs. password: the key differences 

Passkeys are often considered the answer to a password-less future. But what are the primary differences between passkeys and traditional password credentials? 

• Higher security: Passkeys are 20% more successful at reducing the risk of phishing than passwords (or passwords plus a second factor like SMS OTP). Compared to passwords, passkeys are more resistant to credential stuffing and other remote attacks and generally offer consumers and corporations greater security. 

• Better user experience: Passkeys offer a user experience that most consumers are already familiar with and use multiple times a day, like using facial recognition to verify their identity. Deploying a passwordless method that consumers recognize allows for an enhanced user experience and builds trust in your business.

• Simpler management: Passkeys enable service providers to eliminate the reliance on passwords for login and account recovery, using more accessible methods like SMS OTP instead. Because users don’t have to remember their password credentials for access, providers have fewer password resets and account recoveries to handle.  

• Advanced scalability: Passkeys do not require users to create a new set of credentials on each new service, platform, or application, whereas passwords are typically required for initial sign-ins. Because a user can maintain one private key across multiple accounts, it’s easier for them to engage with a provider’s related services or systems. 

• Varied implementation: Passwords are free to generate and use across applications, whereas passkeys require service providers to utilize developers for implementation. It’s often more efficient for businesses to opt for passwordless authentication through APIs like Twilio Verify, which verifies users over multiple channels at scale.

Benefits of passwordless authentication for business

When comparing passkey vs. password authentication, it’s impossible not to discuss the clear benefits that accompany passwordless authentication like passkeys. Passkeys eliminate password reuse, helping reduce the risk of phishing, credential stuffing, and subsequent data breaches.

Passkeys have also been proven to improve the speed and ease of authenticating employees and consumers, leading to streamlined internal workflows and superior customer experiences. Approximately 47% of consumers have abandoned an online purchase and 60% have given up accessing an online service because they forgot their password. Passkeys eliminate this issue. 

Faster, more secure, and more successful sign-ins enable better service delivery and less account recovery. This can explain why 89% of security professionals believe a passwordless approach provides the highest level of security, and passkeys are powering that path for businesses globally.

Not to mention, anyone can implement passkeys because they’re open source. And with solutions like Twilio Verify, businesses can create passkeys with fallback options to other channels—like SMS, email, and WhatsApp. So if a passkey fails, users can still deploy SMS OTP for account access. With Twilio Verify, it’s easier than ever to implement passwordless authentication for frictionless experiences. 

Drawbacks to passwordless authentication

There are very few drawbacks to passwordless authentication, especially when compared to traditional passwords. However, there are a few unique challenges. For instance, while passkeys are open source, it can be challenging to sync them between operating systems. That’s why it’s best to use an API like Twilio Verify to manage multichannel authentication at scale.

Likewise, there can be channel-specific drawbacks to passwordless authentication. SMS text messages, for instance, are more expensive to send. Plus, a user may not have the proper mobile plan to accept the SMS message. With a solution like Twilio Verify, providers can choose from several channels—including email and WhatsApp—to authenticate users with ease. 

Enable passwordless authentication with Twilio Verify Passkeys

Say goodbye to outdated credentials and time-consuming sign-in processes. With Twilio Verify, you can future-proof user authentication with multiple channels under one roof, beginning with SMS and email and exploring more advanced channels—like WhatsApp and push notifications—when you’re ready.

Sign up for a free trial today to get started, then move to a pay-as-you-go plan and only pay for each successful verification.