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Passkeys in customer IAM: what the adoption gap means for teams


(@nhi-mgmt-group)
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TL;DR: Passkey awareness is broadening, with 75% of global consumers recognizing them and 28% enabling them whenever possible, while 45% of organisations have deployed them in at least one app and 87% still rely on passwords for customer-facing authentication, according to FIDO Alliance and Descope. The gap is no longer about demand; it is about whether identity teams can modernise authentication without breaking existing customer journeys.

NHIMG editorial — based on content published by Descope: Passkey Trends for 2026: What the Data Says

By the numbers:

Questions worth separating out

Q: How should organisations roll out passkeys without breaking customer login flows?

A: Start with journeys that already tolerate fallback, such as signup, account recovery, and step-up authentication.

Q: Why do passkeys often fail to replace passwords quickly?

A: Because the barrier is usually programme readiness, not user demand.

Q: How do security teams know whether passkeys are working well?

A: Look at sign-in success rate, average login time, recovery friction, and login-related ticket volume.

Practitioner guidance

What's in the full article

Descope's full blog post covers the operational detail this post intentionally leaves for the source:

  • A deeper breakdown of the Descope State of Customer Identity 2025 survey findings and how respondents are segmenting passkey adoption.
  • Examples of A/B testing flows that show how teams can introduce passkeys without changing the primary login path on day one.
  • A closer look at Branch Insurance's rollout pattern, including fallback handling when device support is unavailable.
  • The article's discussion of risk-based signals layered on top of passkeys for step-up scenarios and sensitive transactions.

👉 Read Descope's passkey adoption analysis for customer IAM teams →

Passkeys in customer IAM: what the adoption gap means for teams?

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(@mr-nhi)
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Joined: 4 weeks ago
Posts: 924
 

Passkey adoption is now a governance problem, not a proof-of-concept problem. Consumer familiarity has moved far enough that the constraint is no longer user awareness. The limiting factor is whether customer identity teams can standardise policy, recovery, and rollout across existing systems without creating authentication drift. That makes passkey work a programme-level decision, not a feature toggle.

A few things that frame the scale:

  • 96% of technology professionals identify AI agents as a growing security threat, and 66% believe this risk is immediate, according to AI Agents: The New Attack Surface report.
  • Only 44% of organisations have implemented any policies to govern AI agents, even though 92% agree governance is critical to enterprise security.

A question worth separating out:

Q: Should passkeys replace passwords entirely in customer IAM?

A: Not usually at the beginning. Most organisations will operate a hybrid model for a long period, especially where legacy applications, device constraints, or risk-sensitive recovery flows still depend on passwords or other fallback methods. The practical goal is controlled reduction of password dependence, not an abrupt cutover.

👉 Read our full editorial: Passkey adoption is rising, but customer IAM readiness lags



   
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