Should our business use a password manager or passkeys?

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Last updated: 7 November 2026

The short answer

Yes to both. A business password manager lets staff use long, unique passwords without remembering them, and passkeys replace passwords with a phishing-resistant sign-in using your device biometrics or PIN. Use passkeys wherever a service offers them, a password manager for everything else, and keep multi-factor authentication on top.

Password manager vs passkey vs MFA

Password manager, passkey and MFA compared
Password manager Passkey MFA
What it is Encrypted vault of unique passwords Cryptographic key tied to your device A second proof of identity
Phishing-resistant Partly (autofill refuses fake sites) Yes Depends on method
Works everywhere Yes Growing Yes
Best use Every account that still needs a password Microsoft 365, Google, banks and apps that support it Always on top

No more reuse

One breached site no longer opens the others.

Phishing-proof

Passkeys only work on the real site, so a fake login page captures nothing.

Easier for staff

Less resetting, fewer sticky notes, faster sign-in.

Shared safely

Teams can share logins without sending passwords by email or chat.

How to roll it out

  • Pick one business password manager and make it the standard
  • Turn on passkeys for Microsoft 365 and other key accounts
  • Keep MFA on, with number matching rather than simple approve prompts
  • Store the manager recovery details somewhere safe, with two named admins

How ABCOM helps

We select and roll out the right tool, enforce MFA and Conditional Access, and train staff in short sessions. See What is MFA? and What is Conditional Access?

Quick answers

Are password managers safe?

Reputable business password managers encrypt vaults so that the provider cannot read them, and the NCSC recommends them. The risk is a weak master password or no MFA on the vault, so protect both.

Do passkeys replace passwords completely?

Not yet everywhere. Many services still need a password as a fallback, so use passkeys where offered and a password manager for the rest.

Want help choosing and rolling out a password manager or passkeys for your team?

Talk to ABCOM

Related answers and guides

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