Microsoft goes passwordless by default on new accounts.

Microsoft Goes Passwordless by Default on New Accounts

In a significant move toward enhancing digital security and user convenience, Microsoft has announced that all new accounts will now be passwordless by default. This change marks a major step in the company’s broader vision to eliminate traditional passwords, which have long been a weak link in cybersecurity. Instead of passwords, Microsoft will encourage users to adopt more secure and user-friendly authentication methods like passkeys, biometrics, and authentication apps.

The Shift to a Passwordless Future

Passwords have historically been a primary method of securing online accounts, but they are also among the most vulnerable. Users often choose weak passwords, reuse them across multiple sites, or fall victim to phishing attacks. Microsoft’s data shows that password-based sign-ins have only a 32% success rate, with many users facing issues like forgotten credentials or account lockouts. In contrast, passwordless sign-ins boast a 98% success rate, showing clear advantages in usability and security.

Recognizing these challenges, Microsoft is now making passwordless authentication the default setting for newly created Microsoft accounts. This includes services like Outlook, OneDrive, Xbox, and others tied to the Microsoft ecosystem. Instead of creating a password, new users will be prompted to set up passkeys or sign in using Windows Hello, the Microsoft Authenticator app, or physical security keys.

What Are Passkeys?

Passkeys are a new type of credential that replaces traditional passwords with cryptographic key pairs. One key is stored securely on your device, while the other is held by the service provider. Authentication happens without transmitting secrets over the internet, significantly reducing the risk of phishing, brute-force attacks, and credential theft.

Passkeys are supported by major tech platforms, including Apple and Google, and are being integrated into various devices and browsers. Microsoft’s implementation means users can log in with biometrics like Face ID, fingerprint readers, or device PINs. This form of authentication is not only more secure but also offers a smoother and faster user experience.

Rebranding World Password Day

In a symbolic move to reflect the new direction, Microsoft is rebranding the annual

“World Password Day” as “World Passkey Day”.This change underscores the company’s commitment to promoting passwordless solutions and educating users about the benefits of newer authentication technologies.

According to Microsoft, approximately one million passkeys are being registered every day, illustrating the growing adoption of passwordless methods. The tech giant believes this shift is not just a security improvement, but also a usability win, as users spend less time managing passwords and more time accessing their accounts securely.

Existing Accounts and Transition Options

While this new policy applies to new Microsoft accounts, existing users are not being forced to abandon their passwords—at least not yet. However, Microsoft is actively encouraging all users to transition to passwordless sign-ins. The company offers step-by-step guidance through its account dashboard, allowing users to remove their passwords and configure passkeys or other authentication methods.

The new passwordless experience is supported by a redesigned sign-in interface, built with Microsoft’s Fluent 2 design language. This interface is optimized for mobile and desktop platforms, includes dark mode, and is designed to reduce friction and cognitive load during sign-in. The redesign is already rolling out to gaming apps and will expand to other Microsoft services in the near future.

A Safer, Simpler Future

By making new accounts passwordless by default, Microsoft is leading a broader industry trend toward more secure and user-centric authentication. The company's strategy aligns with global efforts to replace outdated password systems with more resilient solutions. For users, this transition means fewer hassles, greater security, and a more seamless digital experience.

As more services follow Microsoft’s lead, the days of remembering complex passwords could soon be a thing of the past—ushering in a safer and smarter internet for everyone.

Would you like help transitioning your Microsoft account to passwordless sign-in?