July 3, 2025
by Shimrit Tzur-David / July 3, 2025
Passwordless authentication isn’t just a futuristic idea anymore; it’s becoming essential for enterprise security in a world where passwords remain the weakest link.
With 2.1 billion stolen credentials in 2024 alone, compromised passwords remain one of the most exploited vulnerabilities in cyberattacks. Despite years of warnings, many enterprises still rely on passwords as their primary line of defense, missing the opportunity to upgrade to modern solutions built for today's threats.
But the landscape has shifted. Regulatory compliance pressures, rising phishing attacks, and the growing adoption of hybrid work environments have forced organizations to rethink their approach. Passwordless authentication software has emerged as a secure, scalable alternative, eliminating passwords entirely by replacing them with device trust, biometrics, and cryptographic credentials.
Passwordless authentication is a login method that removes passwords and uses biometrics, one-time codes, or trusted devices to verify identity. Users authenticate with fingerprint scans, face recognition, email links, or security keys. Passwordless systems increase security by reducing password theft and phishing risks.
Some organizations have layered in multi-factor authentication (MFA), these solutions often keep passwords at the core, limiting their effectiveness against modern threats. This guide explores why passwordless authentication matters now more than ever, how it works, the leading solutions in the market, and how enterprises can implement it across complex IT environments.
Passwordless authentication went from being a niche alternative pursued by forward-thinking businesses to something everyone was talking about.
Here are a few commonly used passwordless authentication methods people often choose from:
A one-time code is sent to a registered mobile device or email address. Businesses typically deploy this to authenticate their customers (B2C). It is less commonly used for enterprise authentication, i.e., to authenticate employees.
This passwordless authentication method has become the norm for authenticating users to their mobile devices, with popular implementations of the technology in Apple Face ID and fingerprint authentication ubiquitously available on even the cheapest mobile devices. Biometrics is primarily used to authenticate the user to the device itself using biometric multifactor system designs.
Dedicated hardware security tokens typically store a Public Key Infrastructure (PKI) credential. In recent years, FIDO-compliant devices such as YubiKeys have grown in popularity as a high-assurance user authentication alternative to passwords. These devices offer a good level of security, as they are hard to forge and require physical possession, but they are also rather expensive and cumbersome for users to carry around and use.
This credential (i.e. a PKI client authentication certificate pinned to a personal computer) is mostly used to authenticate employee workstations to business networks and resources. Here again, FIDO-compliant solutions are gaining popularity, with the most notable example being Microsoft Windows Hello for Business. Windows Hello is available on newer versions of Windows and combines a FIDO-compliant credential with a user PIN or biometric print to unlock access to the credential.
Combining multiple forms of authentication for identity proofing results in multi-factor authentication (MFA). Historically, MFA was used to improve the security of password-based authentication. Using a password (something you know) together with a dedicated key fob or registered mobile device (something you have) would provide multiple factors of authentication that are harder to phish, crack, or hack and, therefore, provide a higher level of assurance.
| Feature | Passwordless authentication | Traditional MFA |
| User Input | Biometric, device possession | Password + OTP or security token |
| Phishing Resistance | High | Moderate |
| User Experience | Seamless, quick | Often cumbersome |
| Forgotten Credentials | Rare (biometrics/device-based) | Common |
| Cost to Maintain | Lower (fewer resets/helpdesk calls) | Higher (more user support needed) |
| Security Strength | Very high (no shared secrets) | Moderate (password remains a weak link) |
| Compatibility with Legacy Apps | Moderate to High (varies by vendor) | High |
Today, it is possible to use multiple factors of authentication without passwords as one of the factors, resulting in passwordless MFA. The most commonly used authentication factors for passwordless MFA are the user’s registered mobile device, together with a user PIN or fingerprint provided via the device’s built-in fingerprint sensor.
So, what should an enterprise be looking at when searching for the right authentication solution? There are many considerations when buying a new user authentication solution, but the three most important ones are:
Choosing the right passwordless authentication solution isn’t just about adopting the latest technology; it’s about finding a platform that fits your enterprise’s full range of user needs, technical constraints, and compliance requirements. Here’s what to evaluate before you deploy.
A modern authentication solution must support all user authentication scenarios, or you risk leaving passwords in place for gaps. These gaps undermine your security goals and user experience.
Common enterprise use cases include:
Without complete coverage, you’ll either need to keep passwords as a fallback or deploy multiple authentication systems, both of which are expensive and frustrating for users.
Enterprises aren’t greenfield environments. Over time, IT ecosystems accumulate:
A strong passwordless solution should integrate seamlessly with this environment, avoiding costly rip-and-replace migrations. Look for platforms that:
In regulated industries like finance, healthcare, and government, compliance is non-negotiable. Passwordless solutions must support:
Beyond ticking regulatory boxes, your solution should provide audit trails, strong encryption, and identity-proofing mechanisms that withstand scrutiny from security teams and auditors.
Implementing passwordless authentication in a modern enterprise is more complex than flipping a switch. Enterprises operate in hybrid IT environments, where cloud applications, on-premises systems, legacy platforms, and remote endpoints coexist. A successful passwordless deployment requires a phased approach, balancing modern identity technologies with the realities of existing infrastructure.
Audit your environment to understand where and how users authenticate today. Identify systems that support modern protocols like FIDO2/WebAuthn, and flag legacy applications still dependent on passwords.
Roll out passwordless authentication where it will have the greatest security and user experience impact first:
Look for vendors that support hybrid environments, such as Microsoft Azure AD, Okta FastPass, Duo Passwordless, or Ping Identity. Ensure they integrate with your existing directories (e.g., Active Directory, Azure AD), SSO platforms, and legacy systems.
Many enterprises still rely on legacy apps that can’t support modern auth protocols. Select solutions that can bridge this gap — either by providing fallback credentials managed by the system or by using passwordless wrappers that deliver a seamless user experience.
Start with a pilot group, refine the rollout based on feedback, and expand gradually. Equip users with training and fallback options (e.g., recovery via mobile authenticator or hardware token) to ease adoption.
Track key metrics like login success rates, helpdesk calls, and security incident rates. Continuously refine authentication policies and remove passwords as confidence grows.
Passwordless authentication is one of those rare cases in life where the new solution is clearly superior in every aspect. Choosing it does not require making any trade-offs or weighing pros and cons. Passwordless authentication offers better security and a better user experience and is cheaper to own and operate than password-based authentication solutions.
Passwordless authentication offers a better user experience because users don’t need to recall and key in passwords. This means quicker logons and fewer failed attempts. Passwords are never forgotten or have to be reset, which means less downtime due to lost or forgotten passwords and less aggravation.
Replacing vulnerable passwords with a well-designed passwordless authentication solution actually improves security because passwordless is phishing-resistant and offers better protection against other forms of credential access attacks, including man-in-the-middle, keylogging, credential stuffing, password spraying, and others.
Passwordless authentication is cheaper to own and operate than passwords. Passwords require expensive management because they require supporting password management systems to enable users to perform periodic password refreshes and the occasional password reset.
Passwords also create a significant load on helpdesks when users forget their passwords or lose their authenticator and call the helpdesk for assistance in recovery. Further cost savings can be realized by shutting down phishing prevention programs, which educate users and protect them from phishing. Well-designed passwordless authentication is phishing-proof.
The number one challenge for businesses that decide to deploy passwordless authentication is usually their legacy systems and applications that were not designed for passwordless authentication. So while it is easy to buy into the vision of a passwordless workplace, getting there can be daunting when dealing with a heterogeneous IT environment that combines new and dated systems.
One approach is to deploy passwordless authentication only for systems and apps that support it. This generally translates into the deployment of passwordless authentication for cloud apps and sometimes also on newer operating systems (i.e., the latest versions of Windows 10). But going passwordless is really an all-or-nothing effort: you either get rid of passwords, or you don’t.
So, to successfully deploy passwordless authentication for users, it is usually not enough to decide that passwordless is a better, cheaper, more secure option. It is important to choose the technology that will help you deploy passwordless across an existing and heterogeneous IT environment and address all your authentication use cases.
The passwordless authentication market in 2025 is evolving quickly, with enterprise demand fueling rapid advancements in technology and adoption.
G2 shares honest reviews from IT teams who have switched to passwordless systems, making your decision easier. The best solutions provide enterprise-grade security, broad compatibility with hybrid IT environments, and seamless user experiences across devices and applications.
To be considered for the category, a product must:
Here’s a look at some of the top passwordless authentication solutions according to G2 Summer Reports 2025. Some reviews may be edited for clarity.
Microsoft Entra ID (formerly Azure Active Directory) is an enterprise identity and access management platform that offers passwordless authentication, single sign-on (SSO), and conditional access policies. It supports biometrics, FIDO2 security keys, and device trust to secure user logins across Microsoft 365, Azure, and thousands of integrated applications.
"My favorite is how it ties in so naturally to the Microsoft ecosystem — from Teams and SharePoint to Outlook and Azure. With Single Sign-On (SSO), all applications can be accessed securely by users through a single sign-in, and identities can be managed by administrators from a single point.
Conditional Access is probably the most helpful feature. It allows us to implement policies that vary based on location, device, or user risk. This allows us to have strong security without adding more hassle for users. Integration with MFA is also seamless and reliable.
The most significant benefits are identity management centralization, security, and scalability. It deals with hybrid environments very well — we can both on-premises and cloud identities manage. Besides, features like self-service password reset and group-based access reduce the workload for IT support."
- Microsoft Entra ID Review, Fidel F.
"There is a great deal to dislike. External Authentication Mechanisms don't support primary factors, so MSFT forces me to try and go Passwordless their way. Their implementation of passkeys is not appropriate for enterprise use; it appears more consumer-oriented. SAML integration is done through federation, which is not granular in the way Okta and every other SAML SSO is. In general, the product is painful to set up, use, and maintain. I haven't even started on the hybrid aspects with on-prem AD. It's like a sequel to a bad horror movie."
- Microsoft Entra ID Review, Chris W.
LastPass is a password manager and authentication platform offering secure password storage, autofill, and multi-factor authentication (MFA) for individuals and businesses. Its business plans include password sharing controls, dark web monitoring, and SSO integrations, helping teams manage credentials securely across apps and devices.
"I appreciate how user-friendly and convenient LastPass is! It makes it so much easier to manage and secure all my passwords in one place, without having to remember every login. Plus, the browser extension and mobile app work seamlessly, so I always have access to my information wherever I need it.
I also like how LastPass helps with generating strong passwords, giving me peace of mind that my accounts are safe. Overall, it’s a tool that makes digital life more secure and efficient!"
- LastPass Review, Krishen B.
"I have both a personal account and a business account. Switching between the 2 is a pain. Recently, I have had lots of issues with the plugin for Edge. I have switched to other browsers to avoid it."
- LastPass Review, Andrew L.
Keeper is a zero-knowledge password management and secrets vault solution for businesses and individuals. It enables secure password storage, privileged access management, and role-based access controls, with support for encrypted password sharing, MFA, and secure file storage.
"The ease of use, it's so intuitive and easy to navigate. When it comes to corporate-level usage, managing various users is a breeze, sharing passwords or credentials between users, and delegating levels of hierarchy is such a time saver with peace of mind included. We use it daily here in the company, and it ensures our business stays agile but safe. It's so easy to onboard new members as well. I would have never thought a password management app with a tough layer of security would be so easy to implement on our team."
- Keeper Review, Gabriel P.
"Occasional syncing issues between devices, which can be a bit frustrating when trying to access passwords on the go."
- Keeper Review, Jeovana D.
NordPass Business is a cloud-based password manager designed for organizations, providing encrypted password storage, role-based access controls, and secure password sharing across teams. It offers business-friendly features like directory integrations, activity logs, and data breach monitoring, with strong encryption and zero-knowledge architecture.
"NordPass makes it incredibly easy to store, share, and manage passwords across the team. The interface is clean and intuitive, which helped with fast adoption even for less tech-savvy members. The zero-knowledge architecture gives us peace of mind that our data stays secure. The ability to organize credentials into folders, set access permissions, and monitor usage adds a great layer of control from an admin perspective."
- NordPass Review, Shang T.
"There are a few small UX quirks, like occasional sync delays between devices or needing to refresh to see a newly added item. I’d also love deeper integrations with tools like Azure AD or more granular permission controls within shared folders. But these are minor compared to how well the tool works overall."
- NordPass Review, Ali K.
Salesforce Platform provides built-in authentication and user management tools to secure Salesforce apps and services. While it’s not a password manager, it supports SSO, MFA, OAuth2, and passwordless login options through integrations with Salesforce Identity and external identity providers like Microsoft Entra ID and Okta.
"Salesforce offers unmatched customization through its AppExchange, workflows, and automation tools. It's incredibly flexible and integrates well with external systems via APIs. The reporting and dashboard tools are also strong, enabling detailed performance tracking across teams."
- Salesforce Platform Review, Nabi R.
"The platform can be overwhelming at first due to its complexity and wide range of features. Some tasks require a steep learning curve or admin support, which can slow things down for new users."
- Salesforce Platform Review, Erika F.
Have more questions? Find the answers below.
Examples of passwordless authentication include fingerprint scans, face recognition, security keys (FIDO2), email magic links, SMS one-time passwords, and authenticator apps. These methods verify users without passwords by using biometrics, possession-based devices, or time-sensitive codes to confirm identity securely.
Passwordless authentication is safe when using strong methods like biometrics and hardware security keys. These methods resist phishing and credential theft better than passwords. Safety depends on secure device storage, encrypted data transmission, and multi-factor fallback options to prevent unauthorized access.
The main difference between passwordless authentication and MFA is that passwordless replaces passwords entirely, while MFA adds layers on top of a password. Passwordless uses biometrics or device-based verification alone. MFA combines a password with another factor, like a code or fingerprint, for added security.
Types of passwordless authentication methods include biometrics (fingerprints, facial recognition), hardware security keys (FIDO2, YubiKey), magic links sent by email, and one-time codes sent by SMS or authenticator apps. Each method confirms user identity without requiring a password.
The benefits of passwordless authentication include improved security, faster login, and better user experience. It reduces password theft and phishing risks. Challenges include device dependency, user onboarding complexity, and compatibility with legacy systems. Success depends on secure implementation and user education.
The main difference between passwordless authentication and SSO is that passwordless removes passwords from the login process, while SSO simplifies login by letting one password access multiple systems. Passwordless focuses on eliminating passwords entirely. SSO focuses on reducing repeated logins across services.
Legacy systems can support passwordless login with integration layers like identity providers, gateways, or adapters. These tools bridge old authentication protocols with modern passwordless methods. However, some legacy systems lack compatibility, requiring upgrades or middleware to enable passwordless access securely.
Passwordless authentication improves enterprise security by removing passwords, which are common attack targets. It reduces risks from phishing, credential theft, and password reuse. Using biometrics, security keys, and device verification strengthens access control. Enterprises gain stronger protection against unauthorized access and data breaches.
While many vendors offer passwordless features, truly eliminating passwords across an enterprise remains complex, especially in environments with legacy systems and diverse applications. To unlock the full benefits, organizations need solutions that support passwordless authentication wherever possible and deliver a seamless, secure experience where passwords still exist behind the scenes.
The end goal? Users never have to remember or enter passwords, dramatically reducing phishing risks and improving login flows. And where passwords persist, they’re secured, rotated, and managed by machines, not people.
For enterprises ready to take the next step, exploring leading Identity and Access Management (IAM) software can help build a passwordless foundation across your IT environment.
This article was originally published in 2020 and has been updated with content.
Shimrit is the CTO and Co-Founder of Secret Double Octopus. She holds an MSc and Ph.D. from the Hebrew University of Jerusalem in Computer Science, researching cryptography technologies and security systems. Shimrit also served as a product consultant for Check Point and Marvell Semiconductor.
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