What Is Passwordless Authentication: Is It Better Than OTP & 2FA?

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When I was a project manager, the company I was working with required me to have 11 unique passwords – or maybe it was 15. I can’t recall even one of them. When an associate asked me, “What is passwordless authentication?” I found a way to get rid of the sticky note I kept in my wallet.

I had no idea how it worked back then, so I’m happy to talk from a beginner’s perspective and share a few insights from the results of our testing of passwordless authentication tools.

We’ll also tackle key features that make it stand out among other security tools and some alternatives. So, just stick with me, and you’ll learn how safe this security tech is and how it compares to 2FA and OTP.

What is Passwordless Authentication?

With passwordless security, you can experience some significant advantages, like:

Have questions aside from “What is passwordless authentication?” You’re probably thinking of what to do when your token or biometrics fail. We’ll deal with that later on.

How Does Passwordless Authentication Work?

The traditional password system is simple. When you log in, you enter a pre-set word or string of characters, and the system checks if what you entered matches what’s stored in its database. Meanwhile, in passwordless authentication, you use something unique to you, like your face or fingerprint.

Source: Freepik

The process of passwordless login can be as simple as that of a traditional login, or maybe simpler. It has three steps:

That’s way simpler than remembering all your passwords or storing them on a piece of paper or an exposed document file. But why exactly would you need passwordless access?

What’s Wrong With a Traditional Password?

We’re in an era when we have to memorize credentials, whether for professional or personal use. This is where security fatigue occurs, a situation that the National Institute of Standards and Technology thinks leads to “risky computing behavior at work and in their personal lives.”

Security fatigue occurs when we have to remember too many credentials, such as passwords.

Source: Freepik

As a result, we might create easily guessable passwords or reuse the same password on multiple sites. By doing this, you’re exposing yourself to potential dangers. Let’s say a hacker accessed a website and stole the entire password database, including yours.

They could use the same password to try other websites or even more sensitive accounts, like mobile banks.

Aside from saving you from security fatigue, passwordless authentication lets you minimize these other risks associated with traditional digital security:

Simply put, passwordless authentication strengthens your security without sacrificing convenience. It’s also cost-effective for companies in the long run, as IT teams will be less likely to deal with external and internal breaches.

On top of that, a company can showcase its commitment to advanced security measures, boosting clients’ confidence.

What Are the Main Methods of Passwordless Authentication?

Here comes the exciting part. When I implemented token logins ten years ago, I actually requested my team to surrender them to me at the end of their shifts. That’s because tokens cost a lot back then.

Now, I’m happy to see that thousands of users have access to more passwordless security options. Later in this section, I’ll even show you a few of the best use cases for each of these and their main pros and cons.

Biometrics Login (Fingerprint, Face ID, etc.)

The first thing that came to mind when asked, “What is passwordless authentication?” was my fingerprint, as it was already implemented for premise access in our building back then. I immediately thought about how this technology could be extrapolated to digital platforms.

There are many other types of biometrics used in authentication, and these include:

However, fingerprint and facial scanners are the most common ones we see today. This is probably because they are easy to use, particularly on mobile devices.

A biometric system needs three components: a reader or scanner, software that can process collected biometric data, and a database that checks whether the data matches your credentials.

Possession Factors

Personally, this is a favorite because it’s the first passwordless method I tried. Back then, all we had to do was carry a hardware token, a small device in the form of a keyring, or a card that generates unique codes.

At first, we had to press a button on the token to display a new code. This went better as manufacturers started to create tokens that continuously changed codes.

Before tokens were even a thing, some big companies used to have proximity cards to access systems. While people don’t usually use these on devices these days, some offices still do for premise access and attendance.

OTPs and authenticator apps are now the most common possession factors that the general public has access to. Generally, OTPs involve SMS messages that contain the right code.

Authenticator apps function similarly to OTPs, but instead of SMS messages, your password resets every 30–60 seconds via an app. These two basically function as a way to limit the window of opportunity for malicious attacks.

Magic Links

It only gets even more convenient. With magic links, you provide the system proof of your identity, but this time, without a code. As you enter your credentials into the system, it triggers an automatic email sent to your registered email address.

This time, you just have to click the link to access your account. The great thing is that most of us always have immediate access to our emails.

As you can see, these are all easily doable via a mobile phone. But below’s a table to help you easily distinguish each of their strengths, weaknesses, and best use cases:

Is Passwordless Authentication Safe?

Generally, passwordless authentication is completely safe. It’s just that it’s not 100% immune to potential challenges that may arise while you’re using it. Below are such instances:

These instances of failure only mean that while passwordless authentication is safe, you’ll have to combine all of them to ensure that you’ll gain access whenever you need it.

Additionally, you should have a regular schedule for updating your security settings. This ensures your data is secure even if one method fails.

What Alternatives Are There to Passwordless Authentication?

While it received wide appreciation and use in the previous century, passwordless authentication is not the only option in the market. Similar to any type of security solution, it’s not a one-size-fits-all tool.

Check out the following alternatives to going passwordless:

Traditional Passwords

While using passwords as your only security measure has drawbacks, passwords remain the most common method of securing digital accounts. Many people are more familiar with this method, and developers find it easier to implement it on websites.

Multi-Factor Authentication (MFA)

This feature asks users to provide two or more types of passwords or codes for them to gain access. Pair something you know, like a password, with biometrics, an authenticator app, or a token, and attackers would need to bypass three credentials.

That will be more difficult to hack and will give the system enough time to alert you should multiple failed attempts happen.

Single Sign-On (SSO)

SSO software lets users access different types of systems with only one set of credentials. While it can be used as a stand-alone tool, it can also be part of a bigger, more versatile tool like a password manager.

Security Questions

“Where did your parents meet?” That’s the first question I ever used as a backup method for forgotten passwords. However, there are still systems that allow users to use security questions as an alternative to passwords.

Similar to passwords, these questions also use knowledge-based authentication. You set the questions and answers while signing up for an account. When you log in, you’ll use the answers to verify your identity. While this can be compromised using social engineering, it’s still an added layer of security in combination with other tools.

Password Managers

A password manager is probably the best alternative to passwordless security. With it, you can practically combine all security measures in one app.

Compared to SSO, which also only requires you to remember one master password, these apps have additional features like credential organization and password checks. Want to learn more? We’ll discuss this type of software in the next section.

While there are several alternatives available, it’s crucial to consider which method best suits your specific needs and circumstances. Whether you opt for traditional methods or more advanced solutions like biometric passports or one of the top password managers, the key is finding a balance between convenience and security.

Password Managers — The Key Features

Year after year, we’ll have more networks, stores, and activities to access online via credentials, and we haven’t even mentioned work logins yet. That’s why it’s critical to learn about password managers’ features and how you can make the most out of them.

One of the most comprehensive solutions we’ve tested is NordPass, which lets you store as many unique passwords as you need. But what else do these tools have to offer?

Password Generators

Don’t have time to think of what to include in your password? You can’t think of something easy to remember, and you still have to follow formatting guidelines set by the system admin. With password generators, you can craft a series of characters that are in the right format and highly resistant to guessing attempts and cracking.

Tools are now able to use complex algorithms to write random characters. The result? A combination of letters (in upper and lower case), numbers, and symbols mixed in ways a human could never think of on their own.

Autofill and Password Sharing

Browsers aren’t usually private compared to mobile apps, especially when you’re using someone else’s computer. That’s when autofill comes in handy.

However, autofill is now also a thing with apps. With password managers having autofill, you won’t have to worry about typographical errors anymore.

Should a family member or a close friend ask you to share your access to platforms for education, streaming, or gaming, password managers let you do so without compromising on security. With solutions like NordPass, you can share your passwords via an encrypted message that can be decoded using the same platform.

The other method of doing this is via a secure link, which contains the shared password. Password managers only allow up to 24 hours or until the recipient accesses the password before automatically disabling the link.

Multi-Device Support

At work and at home, chances are you have to switch between devices, like your TV, laptop, and smartphone. Password managers let you do so without having to type your passwords on multiple devices. This feature is closely related to two essential processes: backup and sync.

With backup, you won’t have to worry about losing data on one device. Your data will not be permanently lost, as it’s stored on secure servers or another device.

Meanwhile, sync lets you easily log on to a system while switching from devices. Even better, this feature can provide real-time updates on any account changes.

Biometric and Hardware Support

Want to combine passwordless authentication with the other features on this list? Password managers let you do just that.

Solutions like NordPass support both biometrics and hardware, giving you the best of both worlds. Once you use this in combination with other security features, everything’s going to be more convenient, safe, and personalized.

Storage for Digital Valuables

Who says you can store only passwords in these managers? As these solutions are like a secure vault, they also use encryption capabilities to let you store more sensitive data like bank details. This makes bills and shopping less time-consuming tasks.

Aside from digital assets, you can also have your encrypted diary without sacrificing accessibility. This can contain everything from software license keys to private memos.

Honorable Mentions

While testing different password manager tools, we found some additional features that we’re sure you’ll love. While they may seem just nice to have extras, they actually add up to the security function of your password manager. Here are some notable ones:

The best thing about password managers is that they combine all of the features mentioned above, which were once stand-alone tools. Also, it’s worth mentioning that all of these powerful functionalities are available with NordPass, making it a comprehensive, go-to password manager.

Multi-Factor Authentication vs Passwordless Authentication

As I previously mentioned, MFA involves multiple factors, including a password, biometrics, and/or an OTP from an authenticator app or device. Passwordless logins, on the other hand, are almost the same as MFA except (like the name suggests) without the password.

Let’s have a quick side-by-side comparison of the two in terms of different factors:

Want the best of both solutions? It’s optimal that you opt for a password manager. Aside from passwordless methods and MFA, the extra features will definitely provide you with more convenience, security, and flexibility.

Final Thoughts

A forward-thinking security measure will always give you peace of mind and a return on investment; one example is password authentication. This method simplifies access to systems and devices, enhancing the user’s entire experience while improving security.

As there is no one-size-fits-all credential tool, it’s best to explore your alternatives, including MFA, OTPs, security questions, and SSOs.

One thing’s clear, though. Password managers provide a comprehensive solution by letting you access many password-protection features, unlimited password storage, and even digital valuables storage.

Let me ask you this: Why not take the leap today? You’ll soon find out that forgetting passwords and security fatigue are a thing of the past. With tools like NordPass, you’re securing your accounts and devices more while making the entire process convenient for yourself.

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