The future of authentication, some experts predict passkeys will make passwords obsolete. Experts also predicted the paperless office, flying cars and jetpacks. Not so fast.
Passkeys are the latest darlings of cybersecurity, but where is their place in the authentication journey? Passkeys use cryptographic keys and biometrics instead of usernames and passwords to verify identities at login. Tech giants like Apple, Google and Microsoft are promoting passkeys as a safer, more user-friendly next-generation authentication method. Businesses including PayPal, Uber, Amazon, Home Depot, Shopify and others have announced plans to provide retail customers with alternative “passwordless” passkey sign-ins.
But there’s a catch: while passkeys promise simplicity, they aren’t practical in a collaborative working environment.Passwords remain essential for flexibility, system compatibility and access control .
This article explores why passwords outperform passkeys in real-world security-focused business operations, especially when paired with a robust password manager like Passpack.
Passkey Technology Explained
Passkeys work by creating a unique public and private key pair for each account. The public key is registered with the service’s server. The private key is stored securely in a user’s computer, smartphone, tablet or password manager app that supports passkey technology.
When logging into an app or website, its server sends a “challenge” which is “signed” by the user’s device. If the digital signatures match access is granted without exchanging a password. The process inherently requires multi-factor authentication (MFA) such as a biometric fingerprint or face scan or a PIN to release the private key, which is how the system verifies the authorized user is in possession of the device.
There are no random character strings to memorize, no manual keying errors, and no lost, expired or duplicate passwords. Passkeys are highly resistant to phishing attacks and virtually impossible to steal as two unique keys plus a biometric must be compromised. Passkeys are secure, convenient and provide near-effortless logins once the key pairs are established.
There doesn’t seem to be any reasons not to adopt passkeys. Or are there?
5 Reasons Why Passwords Are Still Better Than Passkeys in 2025
1. Passwords are universal; passkeys aren’t
Out of the millions of websites operating around the globe today, only a very small percentage currently offer passkey authentication. Both sides, the service and the user’s device, must support passkeys and it requires compatible devices, browsers, and synced ecosystems such as iCloud or Google Password Manager. Passkey acceptance is growing but far from ubiquitous.
Passkeys are convenient for individuals when one user repeatedly connects to one service from one device. It validates that user for that session. But that’s usually not the case in business when teams of employees connect to multiple systems simultaneously and access needs to be managed and auditable. Further, a third-party passkey provider is required to enable passkeys to be used across different devices and operating systems like Apple and Google.
Passwords, by contrast, are universally compatible with:
- Legacy and modern enterprise software applications in hybrid IT environments
- Remote desktop and server logins
- Cross-platform cloud and SaaS tools
- Websites and eCommerce systems
- Shared team accounts and collaborative environments
Bottom Line: Passwords work everywhere passkeys don’t and do not burden businesses with additional layers of technology and costs.
2. Passwords are manageable, sharable and auditable; passkeys are not
For companies, managing access control across multiple users is critical. Collaboration in team-based environments requires credential sharing, access to common resources, role-based permissions, and comprehensive activity reporting for auditing – issues that rarely surface in single-user or personal credential management scenarios.
Passkeys store the private key on the user’s device and therefore cannot easily be rotated or audited, making compliance a challenge. It also makes the process heavily device dependent. The trigger to release the private key is usually linked to user biometrics, making them virtually impossible to share. Each user must have their own unique passkey, meaning there are hundreds or thousands of entry points into each service or website that must be tracked and deactivated manually when someone leaves the organization.
Passwords, when managed through a secure platform like Passpack, allow IT admins to:
- Enforce strong password creation and management policies consistently across all users
- Share credentials securely among team members with role-based access controls to limit permissions (Principle of Least Privilege, or PoLP)
- Set a single password for all users to access a service, reducing the attack surface
- Instantly revoke user permissions for secure off-boarding
- Modify or rotate passwords as needed through centralized credential management
- Track user histories and provide granular reporting for auditing and compliance purposes (SOC 2, ISO 27001, HIPAA, etc.)
Bottom Line: Passwords are dynamic, passkeys are static. Passwords provide collaborative visibility, flexibility and control over protected resource access without creating device dependency on a grand scale.
3. Passwords are transparent and recoverable; passkeys not so much
Passwords are straightforward. Users can view them as needed, change them at will, obfuscate them, set periods for rotation/expiration, and back them up in case they are lost or forgotten.
Passkeys, on the other hand, live inside encrypted “secure enclaves” that users can’t easily access. One piece is stored locally, the other remotely. It might be easier to create a new passkey than periodically modify it.
If the device storing the access keychain is lost, crashes or is rendered inoperable by malware, recovery can be difficult or impossible without preconfigured backups of each key pair. Users could be locked out of all their services. And guess what? The backup is the username and password!
Bottom Line: With a password manager credentials are always encrypted, synchronized and easily recoverable no matter what happens to user hardware.
4. Passwords can be equally as secure as passkeys
Weak passwords are not the same as weak security. Passwords sometimes get a bad rap because vulnerabilities arise when credential creation choices are left to end users. Short, easily guessed and reused passwords are the hallmarks of passwords created by users who prioritize convenience over security, and that’s what leads to most data breaches.
When generated and stored properly with a password manager, passwords can be just as strong, if not stronger, than passkeys without sacrificing user convenience. Modern password managers like Passpack offer:
- Random password generators capable of creating up to 16-character strings consisting of numbers, upper and lowercase letters and symbols that take years to break
- Zero-knowledge architecture with data encryption for ironclad storage (not even Passpack can see user data)
- Secure, instant sharing of passwords, PINs, and notes among team members with MFA support for an additional level of protection
- Password health monitoring and automated breach alerts of compromised passwords
- The ability to access services without memorizing a password, just like passkeys
Bottom Line: With the right password manager app, passwords become a robust first line of defense against cyberthreats, not a vulnerability.
5. Passkeys have a place, but…
Passkeys are promising, but the technology is still maturing and in the early stages of adoption. Passkeys are best for individual users connecting to a secure service from their personal device, like calling for an Uber or logging into their PayPal account.
In business environments where efficient, secure and visible collaboration and access to systems, apps and data is critical, passwords – through the use of a password manager – meet the requirements. Conversely, passkeys have very limited applications in team-based business environments beyond login to the password manager itself.
Bottom Line: Passwords remain essential for continuity, compliance, and control.
A Balanced Future: Passwords + MFA + Passkeys
The most secure future for business entities of any size isn’t “passwordless” – it’s password-plus – a combination of access control systems that together substantially reduce the risk of a breach through compromised user credentials.
- Use strong passwords created by a random password generator
- Store credentials in a password manager app for universal access, secure sharing and administrative control
- Activate multi-factor authentication for an added layer of defense
- Use passkeys for specific purposes such as login to the password manager
This balanced approach gives businesses flexibility, compatibility, and resilience — without vendor lock. When all else fails, fall back to the reliable password. It can always be found, changed and recovered.
Passpack: Secure Passwords Made Simple
Passpack empowers teams and organizations to manage passwords safely through:
- Secure individual user vaults each protected by a unique encryption key
- Zero Knowledge architecture with end-to-end 256-bit encryption to protect passwords in transit and at rest/li>
- Multi-user access with centralized administrative control over individual permissions
- Random password generator for consistent enforcement of password complexity policies for length, strength, reuse and expiration
- Real-time password sharing and automatic rotation
- Scalability with support for an unlimited number of users, credentials, and teams
- Audit logs to track every user action for compliance reporting purposes.
- Instant offboarding with 100% revocation of permissions, no errors or omissions
Because the issue isn’t about using passwords – it’s about how people manage them. See how easy it is to make your passwords as secure as passkeys with a 28-day FREE trial of the Passpack Business Plan and keep your logins secure, simple and in compliance.
Frequently Asked Questions (FAQ)
What is a passkey?
A passkey uses cryptographic keys and biometrics instead of usernames and passwords to verify identity at login. Passkeys work by creating a unique public and private key pair for each account. The public key is registered with the service’s server, the private key is stored securely in a user’s device. When logging into a website, its server sends a “challenge” which is “signed” by the user’s device. If the digital signatures match access is granted. The process requires a biometric trigger to release the private key, which is how the system verifies the authorized user is in possession of the device.
Why haven’t passkeys caught on in business yet?
1. Businesses run proprietary software apps, systems and data sets that do not support passkey authentication. 2. Heterogenous IT environments make using passkeys across different devices and operating systems inefficient. 3. Passkeys are device-dependent, and devices owned by/in possession of end users make auditing and changes very difficult and time consuming.
Can passwords be as equally effective as passkeys?
Yes. When properly implemented and used in conjunction with a password manager, passwords can be as strong and convenient as passkeys without significant investment.