The world of authentication is changing fast. Passwords, which have long been the cornerstone of digital security, are finally being replaced with more secure and user-friendly technologies. Two terms that often come up in this context are FIDO2 and passkeys. While they’re related, they’re not exactly the same thing. In this blog post, we’ll clarify the difference between FIDO2 and passkeys, and explain why it matters.
What Is FIDO2?
FIDO2 is an open authentication standard developed by the FIDO Alliance in collaboration with the World Wide Web Consortium (W3C). It consists of two main components:
- WebAuthn (Web Authentication API) – A W3C standard supported by modern browsers that allows websites to register and authenticate users using public key cryptography instead of passwords.
- CTAP (Client-to-Authenticator Protocol) – A protocol that enables external devices (like security keys or smartphones) to act as authenticators.
Together, WebAuthn and CTAP make up FIDO2. The core idea is that the user’s credentials are stored securely on a device (like a phone or a security key), and never leave that device. Authentication uses public/private key cryptography, making it phishing-resistant and far more secure than traditional passwords.
What Are Passkeys?
Passkeys are a user-friendly implementation of the FIDO2 standard. They are designed to make passwordless authentication intuitive and accessible to everyday users.
Passkeys are:
- Credential objects stored securely on your devices (like your phone or computer).
- Synced across devices using cloud services like iCloud Keychain (Apple), Google Password Manager, or Microsoft Authenticator.
- Automatically available across your ecosystem without requiring you to manually transfer keys.
In simple terms:
FIDO2 is the protocol. Passkeys are the product experience built on top of it.
Key Differences
| Feature | FIDO2 | Passkeys |
|---|---|---|
| Standard or Product | Open standard (WebAuthn + CTAP) | Productized experience built on FIDO2 |
| User Experience | Often requires hardware keys or setup | Seamless login via Face ID, fingerprint, or device PIN |
| Sync Across Devices | Not part of the FIDO2 spec | Yes (via platform ecosystems like Apple, Google, Microsoft) |
| Target Users | Developers, security professionals, enterprises | Everyday users, consumers |
| Example | Login using a YubiKey | Login using Face ID on iPhone or fingerprint on Android |
Hardware Tokens Remain a First-Class Option
While passkeys emphasize convenience and device-based login (like Face ID or fingerprint), FIDO2 was designed from the ground up to support a broad range of authenticators—including hardware tokens.
Hardware security keys such as YubiKeys, Feitian, SoloKeys, and others are fully compliant with the FIDO2 and WebAuthn standards. These devices offer:
- High-assurance authentication with tamper-resistant hardware
- Protection against phishing and man-in-the-middle attacks
- Cross-platform compatibility, including support for desktops, laptops, and mobile devices
- Offline capability—ideal for air-gapped or regulated environments
For organizations in sectors like banking, government, or healthcare, where device integrity and compliance are critical, hardware tokens continue to be a reliable and secure choice.
Flexible Deployment Models
FIDO2’s strength lies in its flexibility:
You can deploy a hybrid authentication strategy where passkeys are used for most consumer scenarios, while hardware tokens are reserved for privileged accounts, staff with elevated permissions, or environments with strict security requirements.
This unified approach gives businesses the best of both worlds—consumer-grade usability and enterprise-grade security—within the same authentication ecosystem.
The Impact on Banking
The banking industry stands to benefit significantly from the adoption of FIDO2 and passkeys. In an environment where security, compliance, and user trust are critical, passkeys offer:
- Stronger protection against fraud and phishing attacks
- Faster, frictionless logins across digital channels
- Reduced reliance on SMS one-time passwords (OTPs), which are vulnerable to SIM swapping and social engineering
- Improved customer experience, particularly on mobile and multi-device journeys
As regulators and customers increasingly expect both security and convenience, passkey adoption will become a competitive differentiator for banks and financial institutions.
Why This Matters
Understanding the distinction between FIDO2 and passkeys is helpful when evaluating authentication strategies. FIDO2 is the technical foundation that enables secure, passwordless login. Passkeys are how that foundation is being brought to the mainstream.
Tech giants are rapidly rolling out support for passkeys to reduce reliance on passwords. Apple, Google, and Microsoft are aligned on this approach — making passkeys the most promising step forward for secure, simple authentication.
Final Thoughts
FIDO2 and passkeys are not competing technologies — they’re two sides of the same coin. FIDO2 provides the secure protocol, and passkeys provide the usability that will drive widespread adoption.
If you’re building apps, websites, or authentication systems, supporting passkeys means you’re already supporting FIDO2 under the hood — and you’re helping make the internet safer for everyone.
