Of all the recent publications with regards to passkeys, FIDO2, WebAuthn, etc., finally there's one with a simple and concise summary of the benefits: > Strong credentials. Every passkey is strong. They’re never guessable, reused, or weak. > Safe from server leaks. Because servers only keep public keys, servers are less valuable targets for hackers. > Safe from phishing. Passkeys are intrinsically linked with the app…
The last one is a problem for a lot of use cases. Lots of sites have different domains (also for example when HBO max renamed to max). Plaid also relies on entering bank passwords on neobank sites and is widely used.
And for things like Plaid, I think banks are moving towards OAuth-style permissions, where you login to your bank and authorize the connection. Under the hood, Plaid or other app can connect to the bank with limited permissions using API authorization keys. It's a different problem, I think.