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Overview

What is a password manager? A guide for businesses

A password manager creates, stores and fills in a different strong password for every account, so staff only have to remember one. For an organisation it also decides who can see each shared login and what happens when someone leaves. Here is what a password manager does at work, what the NCSC advises, and how the business plans of Keeper, 1Password, NordPass and LastPass fit together.

In short

A password manager stores passwords and passkeys in an encrypted vault and fills them in, so every account can have its own unique password. A business password manager adds an admin console, shared folders by team, policies and offboarding. The NCSC recommends "the use of password managers for secure storage wherever appropriate".

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What a password manager does

The NCSC's own definition is the simplest: "A password manager stores passwords safely for you, meaning that you can have unique passwords for each service as you won't need to remember them" (NCSC (opens in a new tab)). Its password policy guidance for organisations adds that "password managers can help users by generating and auto-filling passwords when required" (NCSC (opens in a new tab)).

Every password manager we cover does the same core jobs for each member of staff, under its own feature names:

What a password manager does
JobWhat it means for your staffWhat the vendors call it
CreateGenerates a long, random password for each new accountPassword generator (all four)
StoreKeeps passwords, passkeys and notes in an encrypted vaultVault (all four)
FillFills the login form in the browser or appAutofill; KeeperFill on Keeper
SyncMakes the vault available on work laptops, phones and browsersSync across devices
WarnFlags weak, reused or breached passwordsWatchtower (1Password), BreachWatch (Keeper add-on), Password Health and Data Breach Scanner (NordPass), security dashboard and dark web monitoring (LastPass)
ShareShares a login with colleagues without sending it in a messageShared vaults or folders, one-time or expiring links

The point of all this is reuse. If one website is breached and the same password was used elsewhere, every one of those accounts is exposed. A password manager makes a unique password for each account effortless, which is why the NCSC's 2017 answer to "Should I use a password manager?" was simply "Yes. Password managers are a good thing" (NCSC (opens in a new tab)).

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What a business password manager adds

A password manager for one person stops at the vault. A business password manager adds the controls an employer needs:

What a business password manager adds
ControlWhy it matters to an organisation
Admin consoleAdd starters, remove leavers and see who has access to which shared logins
Shared folders or vaults with permissionsFinance, marketing and IT each see only their own shared logins, with view or edit rights
Policies for everyoneRules such as password strength and multi-factor authentication on the vault apply to every user
Single sign-on and provisioningStaff unlock the vault with their Microsoft Entra ID, Google Workspace or Okta identity, and accounts follow your directory (plan dependent)
OffboardingShared credentials stay with the organisation when someone leaves
Activity logs and reportsEvidence for auditors, insurers and Cyber Essentials (opens in a new tab) of who opened, shared or changed a credential

LastPass describes the starting point for many teams: "Stop storing passwords in shared spreadsheets or docs" (LastPass (opens in a new tab)). Our password management software guide explains each of these features in more depth.

Browser-saved passwords or a dedicated password manager?

Most staff already save passwords in Google Password Manager, Microsoft Edge or Apple Passwords. The NCSC says using the one built into your browser or device is safe on your own devices, and its June 2025 blog sets out when a separate (third-party) manager makes more sense (NCSC, Trusting the tech (opens in a new tab)):

Browser-saved passwords or a dedicated password manager?
If this matters to your organisationNCSC guidance points to
Features such as secure notes or password sharingA third-party manager: browser-based ones "often lack the advanced features of standalone password managers"
A mix of devices and browsers (say Windows laptops, iPhones and Chrome)A third-party manager, which "can synchronise passwords even when you have a mix of different browsers and devices"
Avoiding being "locked in" to one vendorA reputable third-party manager

For a business, the bigger gap is control: browser-saved passwords belong to each person's own profile, with no shared folders, policies or leaver controls. Our guide to browser password managers for business sets out what Google Password Manager and Microsoft Edge cover at work, and how to switch password saving off once staff have moved.

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The four business password managers we cover

Keeper, 1Password, NordPass and LastPass each sell an entry plan for small teams, a main business plan and a top tier for larger organisations. Plan names below are as each vendor writes them; prices depend on seats and plan, so ask us for a quote.

The four business password managers we cover
Password managerBusiness plansOur guide
1PasswordTeams Starter Pack, 1Password Business, Enterprise Password Manager1Password Business
KeeperBusiness Starter, Business, EnterpriseKeeper for business
LastPassTeams, Business, Business MaxLastPass for business
NordPassTeams, Business, EnterpriseNordPass for business

We can quote and supply all four for your business, with the plan and terms confirmed at quote. Our password manager comparison and guide to choosing a business password manager set the business plans side by side, and how we compare explains where our facts come from.

Passkeys and password managers

Passkeys are replacing passwords on more and more sites. In April 2026 the NCSC said passkeys "should now be consumers' first choice of login across all digital services", and that where a service does not support them, people should "use a password manager to create stronger passwords and keep using two-step verification" (NCSC (opens in a new tab)).

A password manager is also where passkeys live. The NCSC's passkeys page explains that the password manager on a device is "more accurately called a 'credential manager' as it manages more than just passwords" (NCSC (opens in a new tab)). The FIDO Alliance names third-party apps such as 1Password among the passkey providers that store and sync passkeys (FIDO Alliance (opens in a new tab)), and the vendors describe their business support:

  • 1Password: "lets you create, use, and share passkeys", with shared vaults making passkeys available to colleagues (1Password (opens in a new tab))
  • NordPass: business users store "passkeys, notes, payment card details, and other important information in their own encrypted, private vault" (NordPass (opens in a new tab))
  • Keeper and LastPass: both list passkey storage alongside passwords in the vault

So a password manager does not become redundant with passkeys; it holds both while sites make the switch. See passkeys for business for how to adopt them alongside passwords.

Keeping the vault secure across your organisation

A password manager concentrates logins in one place, so the accounts protecting it deserve care. The NCSC is realistic: password managers "are attractive targets in themselves" (NCSC (opens in a new tab)). In a business, the admin console lets you set the safeguards once for everyone:

  1. Choose a reputable provider. The NCSC's advice is to "pick a reputable company with a strong security track record" (NCSC (opens in a new tab))
  2. Enforce multi-factor authentication on the vault, or have staff unlock it through single sign-on with your identity provider's own multi-factor authentication
  3. Set the account recovery route and the offboarding policy in the admin console before you invite staff
  4. Write the rules down. Our business password policy guide covers what goes in the vault and how to share

Our guide are password managers safe for business? looks at how each of the four protects the vault.

How we help with business password managers

We can quote Keeper, 1Password, NordPass and LastPass for your business, so we can recommend the one that fits rather than the only one we sell.

  • Help you choose: we compare the plans against your identity platform (Microsoft Entra ID, Google Workspace or Okta), your team size and how you share credentials
  • Set-up: we can help you connect single sign-on and user provisioning, set policies and create shared folders or vaults for each team
  • Moving in: we help you import passwords from browsers, spreadsheets or another password manager
  • Licensing in one place: licences can be billed monthly, with the plan and terms confirmed at quote

We work with businesses, schools, charities and public sector organisations. Contact us to talk it through.

Frequently asked questions

Does my business need a password manager?

If staff share logins or keep passwords in browsers or spreadsheets, a business password manager is the simplest fix. The NCSC's password policy guidance for organisations says "The NCSC recommend the use of password managers for secure storage wherever appropriate", and Cyber Essentials v3.3 names a password manager as an example of usable secure storage for passwords.

What is the difference between a password manager and a business password manager?

A password manager is the vault and app a person uses to save and fill passwords. A business password manager adds an admin console, shared folders with permissions, policies for every user, sign-in and provisioning from your identity provider, activity logs and a way to keep shared credentials when someone leaves.

Are password managers safe for business use?

The NCSC says "Password managers are a good thing" and that they are also attractive targets, so choose a reputable provider and enforce multi-factor authentication on the vault. Keeper, 1Password, NordPass and LastPass each describe a zero-knowledge design. See are password managers safe for business?

Can a password manager store passkeys?

Yes. The NCSC calls the password manager a "credential manager" because it keeps passkeys as well as passwords. Keeper, 1Password, NordPass and LastPass all store passkeys, and a password manager is still needed for the many sites that only offer passwords.

Which password manager should my business use?

That depends on your identity platform, team size and how you share credentials. We can quote Keeper, 1Password, NordPass and LastPass for your business. Start with our guide to choosing a business password manager or contact us for free advice.

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