What Are Passkeys? How to Replace Passwords at Work in 2026

What's happening: passkeys have gone mainstream. The FIDO Alliance, the industry group behind the standard, said in May 2026 that it estimates about 5 billion passkeys are now in use worldwide, and major platforms from Apple, Google and Microsoft support them by default.

Why it matters: stolen and reused passwords remain one of the most common ways attackers break into business accounts. Passkeys remove the password itself, which removes the thing attackers most want to steal.

What are passkeys, in plain English?

A passkey is a pair of digital keys created when you register with a website or app. One key is public and stored by the website. The other is private and stays locked on your device, protected by your fingerprint, face or PIN.

When you sign in, the website sends a challenge that only your private key can answer. Your device answers it after you unlock it. The website checks the answer with the public key and lets you in. No password is typed, sent or stored on the server.

Passkeys can sync across your devices through your password manager or your Apple, Google or Microsoft account, so a new phone does not mean starting over. They can also live on a physical security key for higher-risk accounts.

How do passkeys stop phishing?

Phishing works by tricking people into typing their password into a fake site. Passkeys make that trick fail for three reasons.

• They are tied to the real website: a passkey for yourbank.com simply will not work on yourbank-login.com.
• There is nothing to type: staff cannot hand over a passkey to a scammer over the phone or in a form.
• Servers hold only public keys: if a company's database is breached, attackers get nothing they can use to sign in.

Yes, but: passkeys do not stop every attack. Malware on an unlocked device, stolen session cookies and weak account recovery processes are still risks. Pair passkeys with device security and careful recovery rules.

Passkeys vs passwords vs two-factor codes

If you are not ready for passkeys everywhere, the next best step is app-based two-factor authentication. Our guide to setting up two-factor authentication for business walks through it.

How to replace passwords with passkeys at work

You do not need a big IT project. A small business can move to passkeys in stages.

1. Start with your most important accounts: email, your domain registrar, banking, payroll, your website admin and cloud storage. Most major services now offer passkeys in their security settings.
2. Choose where passkeys are stored: a business password manager that supports passkeys makes sharing and recovery easier than personal phone accounts.
3. Turn on passkeys in your identity provider: if you use Google Workspace or Microsoft 365, enable passkey or security-key sign-in for staff in the admin settings.
4. Set up at least two passkeys per person: for example, one on a laptop and one on a phone or hardware key, so a lost device does not lock anyone out.
5. Tighten account recovery: attackers target the "forgot password" path. Require identity checks before resetting access.
6. Remove passwords where possible: once everyone has passkeys, some services let you disable password sign-in altogether.

Are passkeys right for every business?

For most small and mid-sized businesses, yes. They reduce risk and save time. A few situations need extra planning:

• Shared devices: shops and clinics with shared terminals may need hardware security keys or individual logins.
• Older software: some legacy business apps still only support passwords. Keep strong unique passwords in a password manager for these.
• Customer-facing websites: if you run a site where customers log in, offering passkeys can reduce password-reset requests. Our small business website guide covers the basics of running your own site.

The big picture: security agencies and industry groups have pushed for years for phishing-resistant sign-in. Passkeys are the first version that is easy enough for everyday staff.

What to watch: more banks, government services and workplace apps are expected to make passkeys the default option. Expect "Sign in with a passkey" to become as familiar as "Sign in with Google".

Ready to go further? Our small business cybersecurity checklist covers backups, updates and staff training alongside passkeys.

The bottom line: Passkeys are the simplest big security upgrade a small business can make. Start with email and finance accounts this month, give everyone a backup passkey, and you will close the door on most phishing attacks.