Report by FIDO Alliance & HID

The State of Physical and Digital Identity in the Enterprise

15 FINDINGSPublished Jun 15, 2026
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Key Findings

58% of enterprises say managing digital identity has become more complex over the past two years.

Identity ManagementDigital IdentityEnterprise

65% of organizations report high or expert technical familiarity with passkeys.

PasskeysTechnical Readiness

35% of organizations experience delays or failures revoking physical or logical access within 24 hours when an employee leaves, with such events occurring in the past two years.

Access ManagementIdentity SecurityAccess Revocation

48% of enterprises have consolidated budget control for physical and digital identity.

Identity ManagementEnterprisePhysical IdentityDigital Identity

13% of organizations have deployed passkeys at scale.

PasskeysAuthentication

59% of enterprises manage three or more distinct credential and authentication systems.

AuthenticationIdentity ManagementCredentialEnterprise

43% of Public Sector organizations experience access revocation failures.

Public SectorAccess ManagementIdentity SecurityAccess Revocation

94% of organizations claim they can revoke all physical and logical access within 24 hours of an employee leaving.

Identity SecurityAccess Management

70% of organizations experience at least one identity-related security incident.

Security IncidentsIdentity SecurityIdentity Security Incident

34% of Finance organizations operate fully separate reporting structures for physical and digital identity despite stringent regulatory access-control obligations.

FinanceRegulatory Identity ManagementPhysical IdentityDigital Identity

45% of organizations cite reducing phishing and credential-based breach risk as the leading driver for moving to passwordless authentication.

AuthenticationPhishingPasswordless

50% of enterprises have unified reporting ownership for physical and digital identity.

Identity ManagementEnterprisePhysical IdentityDigital Identity

20% of Public Sector credential revocations are performed manually, which is more than double the manual revocation rate in the IT/Technology sector.

Public SectorCredential ManagementIdentity SecurityCredential RevocationTechnology Sector

93% of organizations are at some stage of passkey adoption.

PasskeysAuthentication

44% of organizations cite reducing IT costs from password resets and help desk load as a key driver for moving to passwordless authentication.

AuthenticationIT CostsPasswordless