How do passkeys address the high costs of SMS OTPs?

SMS OTPs are a costly authentication method for enterprises due to per-message fees, high usage volume, and operational overhead. Passkeys provide a cost-effective alternative by eliminating the need for SMS-based authentication. Here's how passkeys help:

• Passkeys operate over the internet without relying on telecommunications networks.
• This eliminates the recurring costs of sending SMS OTPs for logins, sign-ups, and account recovery.

• SMS-based systems are vulnerable to artificially inflated traffic (AIT), where attackers generate fake OTP requests to increase costs.
• Passkeys are immune to such attacks, significantly reducing fraudulent expenses.

• Passkeys offer faster and simpler authentication processes using biometrics or device-based PINs.
• This reduces the reliance on SMS OTPs and improves user experience, encouraging adoption of the cost-saving alternative.

• Passkeys eliminate issues related to failed SMS delivery (e.g., due to carrier restrictions or cross-border challenges), reducing the number of support tickets.
• Fewer recovery calls and support interventions lead to lower operational costs.

By transitioning to passkeys, enterprises can save up to 90% of their SMS OTP-related costs. This not only reduces financial strain but also enhances security and user experience.