Passkeys: Should You Build or Buy?
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Passkeys are the future of authentication, eliminating passwords while improving security and user experience. However, companies looking to implement passkeys face a critical decision: build an in-house solution or rely on a passkey vendor. This guide breaks down the pros and cons of each approach, highlighting key considerations for businesses in banking, e-commerce, government services, and beyond.
Why Passkeys Are the New Standard
Passwords are outdated. They are insecure, easily compromised through phishing, and cause unnecessary friction for users. Passkeys - built on the FIDO2/WebAuthn standard - replace passwords with cryptographic authentication, offering a seamless and secure login experience.
Major platforms like Google, Apple, and Facebook have already integrated passkeys, driving widespread adoption. Businesses that want to stay ahead must consider how to implement passkeys effectively.
The Challenges of Building Your Own Passkey Solution
At first glance, implementing passkeys in-house seems feasible - after all, FIDO2 is an open standard, and there are existing WebAuthn libraries. However, as many companies have discovered, the real challenges emerge after the first successful login.
Key obstacles include:
- Edge Cases & User Errors - Passkey authentication needs to handle scenarios like lost devices, expired credentials, and fallback authentication.
- Security & Compliance - Regulatory requirements (e.g., GDPR, PSD2, HIPAA) necessitate enterprise-grade security measures beyond what open-source libraries provide.
- Multi-Platform Support - Users expect seamless passkey authentication across desktop, mobile, and different browsers.
- Long-Term Maintenance - Keeping up with evolving WebAuthn standards, OS updates, and security patches requires ongoing development effort.
Why Buying a Passkey Solution Can Be the Smarter Choice
For many organizations, working with a passkey vendor significantly reduces implementation complexity and risk. A managed solution offers:
- Pre-Built Compliance & Security - Vendors ensure passkey authentication meets industry security standards and is updated automatically.
- Higher Adoption Rates - Optimized user onboarding flows and built-in UI nudges help drive adoption.
- Reduced Total Cost of Ownership (TCO) - A vendor-managed solution can be cheaper than hiring a dedicated team to maintain an in-house system.
Evaluating the Right Approach for Your Business
The decision between building vs. buying depends on several factors, including technical expertise, compliance requirements, and deployment scale. Here’s a simplified framework to help assess your situation:
✅ Build in-house if:
- Your organization has extensive authentication expertise and dedicated engineering resources.
- You require deep customization beyond what existing passkey solutions provide.
- You are comfortable with long-term maintenance responsibilities.
✅ Buy from a passkey vendor if:
- You want a faster and more cost-effective implementation.
- Security, compliance, and high adoption rates are critical.
- Your team lacks WebAuthn expertise, and you prefer a proven, scalable solution.
Industry Insights: How Leading Companies Implement Passkeys
Many businesses have already made the shift to passkey authentication. Here’s how different industries approach the build vs. buy decision:
- Banking & FinTech → Banks like Revolut and UBank use vendor solutions for compliance and security at scale.
- E-Commerce & Retail → Amazon and Shopify have embraced passkeys to reduce cart abandonment and fraud.
- Public Sector & Government → VicRoads successfully implemented passkeys to enhance citizen authentication.
- Healthcare & Insurance → Providers prioritize passkeys for secure patient data access and fraud prevention.
The Bottom Line: Adoption Matters More Than Implementation
Regardless of whether you build or buy, passkey adoption is the #1 success factor. Without strong user adoption, a passkey rollout will fail to deliver ROI. Organizations must prioritize seamless UX, education, and phased rollout strategies to drive meaningful adoption.
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