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Passkey Authentication Increasing, But Adoption Remains Slow

Passkey Authentication Increasing, But Adoption Remains Slow

Analyzing the Rise of Passkeys: Insights from Dashlane’s Latest Report

Passkeys are becoming an increasingly common feature in login interfaces, yet their widespread implementation remains limited, as highlighted by recent findings from Dashlane, a renowned credential security specialist. The company recently published its third annual Passkey Power 20 report, analyzing millions of aggregated and anonymized passkey authentications processed from July 2025 through June 2026.

The report reveals an encouraging trend: passkey authentications among Dashlane users have nearly doubled year over year. By 2026, these authentications reached approximately 2.5 million per month, indicating a growing acceptance of this technology among users. Furthermore, over half of Dashlane’s users (57%) now store at least one passkey, up from 40% in the previous year, signifying an upward trajectory in user engagement with this secure authentication method.

Despite these positive statistics, the adoption rate of passkeys remains low on major online platforms. According to the report, websites such as Google, PayPal, Amazon, and eBay still rely predominantly on traditional login methods, with passkeys accounting for only 28%, 18%, 17%, and 8% of logins, respectively. This discrepancy suggests that while users may be inclined to embrace passkey technology, many platforms are not fully utilizing its potential.

Passkeys present a robust solution against phishing scams. Unlike traditional passwords, which can be guessed or stolen, passkeys require users to log in using device PINs or biometric verification, such as facial recognition. This cryptographic technology links passkeys to legitimate websites, safeguarding users’ private keys, which remain securely stored on their devices. Consequently, even if a website were to be compromised, hackers would be unable to access the users’ private keys, significantly enhancing their security.

Institutions like Report Fraud have started advocating for passkeys as one of the most effective measures to counteract account takeover attacks. From a corporate perspective, the benefits of adopting passkeys are manifold. They not only help in protecting sensitive corporate data and systems but also alleviate the burden of password resets on IT support.

Dashlane has also noted a significant increase in the number of applications supporting passkey functionality. Among the leaders in volume of authentications, well-established companies such as HubSpot and Cisco Duo are paving the way. Additionally, new players have emerged in the top 20, including HR and payroll platforms such as isolved HCM and BambooHR, alongside major cloud services like AWS and Dropbox.

However, despite the increased support for passkeys, Dashlane emphasizes that there is a critical need to bridge the gap between support for passkey technology and its actual adoption rates. The company suggests several strategies to foster this transition:

  1. Visibility and Usability: Making passkeys prominent and convenient in existing workflows can enhance user engagement.
  2. Promotion of Speed: Market passkeys as a quicker alternative to traditional passwords, highlighting their higher completion rates.
  3. Reduction of Alternatives: Gradually phasing out traditional methods such as one-time passcodes and passwords can encourage users to adopt passkeys.
  4. Mandatory Adoption Deadlines: Setting a firm deadline for users to switch to passkeys can expedite the transition process.

However, developers aiming to mandate passkey adoption are few and far between. An example cited in the report is Japan’s LY Corporation, which has announced a deadline of spring 2027 for Yahoo Japan users to transition to passkeys.

Dashlane’s Chief Product Officer, Christophe Frenet, argues that the time has come for more companies to prioritize passkey implementation as the default method for user logins. "Despite sustained growth, we’re not on the other side yet," Frenet stated. "There’s still more work to be done to make passkeys easier to use, and more companies need to make a decisive shift from soft adoption to enforcing the change, ensuring that passkeys evolve into the primary authentication method rather than a secondary option, as is currently the case."

In conclusion, while the upward trend in passkey usage is promising, significant challenges remain in transforming this technology into a widespread standard. As Dashlane continues to advocate for the adoption of passkeys, it remains to be seen how quickly both consumers and businesses can make the transition, ultimately enhancing online security for users around the globe.

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