What Is Passwordless Authentication & How Does It Work?

The age of passwords is over.

Nearly half of organizations experienced data breaches in 2024, and 87% of those breaches were tied to identity vulnerabilities. It’s clear passwords and other legacy methods are proving too easy for attackers to exploit, especially as AI-driven threats continue to evolve.

That’s why more organizations are asking: What is passwordless authentication, and can it actually deliver a better way to manage access?

Unlike traditional logins, passwordless authentication removes the need to remember or enter a password. It replaces that step with secure alternatives like passkeys, smart cards or mobile credentials.

Understanding how passwordless authentication works is key to adopting a more secure and user-friendly approach to identity verification.

Key takeaways:    

• Passwordless authentication verifies identity without requiring a traditional password by using secure alternatives like passkeys, smart cards or mobile credentials.
• It offers major benefits across industries, including stronger security, a better user experience and improved compliance with regulations like HIPAA and GDPR.
• Industries like healthcare, enterprise and manufacturing are leading the shift to passwordless due to the need for fast, secure access.

How does passwordless authentication work?

Passwordless authentication is a method of verifying identity without requiring a user to enter a traditional password. Instead, it relies on more secure and convenient methods such as biometrics, smart cards or mobile credentials.

These methods verify identity based on something the user has (like a badge or smart card) or is (like a fingerprint or Face ID), rather than something the user knows (like a password or PIN).

Here’s how passwordless authentication typically works:

• The user initiates a login to a device, application or workstation.
• Instead of a password, the system prompts for an alternative form of authentication. This could be a biometric scan, a mobile device verification or a tap of a smart card on an RFID reader.
• The system verifies the user’s identity using encrypted or token-based credentials.
• Once verified, the user gains secure access — no passwords required.

Security standards like FIDO2 enable passwordless workflows by supporting encrypted key exchanges and binding credentials to specific devices.
 

4 benefits of passwordless authentication

Passwordless authentication doesn’t just eliminate the headache of managing passwords. It strengthens security, simplifies access and supports compliance across a wide range of industries.

1. Stronger security
   Removing passwords from the equation helps eliminate a common target for attackers. Without shared secrets to steal or guess, threat actors have fewer ways to breach your systems. Methods like smart cards, passkeys and mobile authentication reduce exposure to identity-based threats. In fact, 68% of organizations cite preventing password-based attacks as the top reason for adopting passwordless or FIDO-based authenticators.
2. A better user experience
   With passwordless authentication, users can access devices and applications with a simple tap or scan, without the need to remember or reset complex passwords. This is especially valuable in fast-paced environments like hospitals or manufacturing floors, where swift, easy access to areas and equipment is vital.
3. Reduced IT workload
   Password resets are among the most common help desk requests. Eliminating passwords means fewer tickets and interruptions, enabling IT teams to spend more time on strategic tasks. In fact, 77% of enterprises said passkeys have had a moderate to strong impact on reducing help desk calls.
4. Compliance support
   Many industries have strict data access and privacy requirements. Passwordless authentication supports compliance with standards like HIPAA, GDPR and FIPS by strengthening access controls and providing audit trails.

Where passwordless authentication works best

Some environments demand fast, secure access without added complexity. Passwordless authentication is a natural fit in industries where compliance, user efficiency and security go hand-in-hand.

• Healthcare: Clinicians can use RFID-enabled badge taps to access electronic health records quickly and securely, supporting HIPAA compliance while keeping focus on patient care.
• Enterprise: Employees can tap in with smart cards or mobile credentials to streamline single sign-on (SSO) access across workstations and business applications.
• Manufacturing: Workers can use smart cards to clock in or access machinery, improving security and operational flow.
• Government: Federal employees and contractors can use smart cards or mobile credentials to securely access facilities and digital systems.

Make the move to passwordless authentication

As identity threats grow more sophisticated, traditional passwords are no longer enough to protect users or systems. Passwordless authentication offers a more secure and efficient way forward, reducing friction, improving compliance and closing the gaps left by outdated login methods.

Whether you’re looking to strengthen access in clinical settings, on the manufacturing floor or across a distributed enterprise, adopting passwordless technology doesn’t have to mean starting from scratch.

Solutions like our WAVE ID® readers and ConvergeID™ passwordless platform enable phased deployment of modern authentication—without disrupting your existing workflows.

Contact us to learn how rf IDEAS can help you make the transition to passwordless authentication.