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Daily Hackly > Blog > Tech & Digital Trends > Reasons Behind Microsoft’s Decision to Eliminate Passwords for New Accounts
Tech & Digital Trends

Reasons Behind Microsoft’s Decision to Eliminate Passwords for New Accounts

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Last updated: May 22, 2025 4:20 pm
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Reasons Behind Microsoft’s Decision to Eliminate Passwords for New Accounts
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Microsoft Moves Towards a Password-Free Future

Microsoft has made a significant advancement in its efforts to phase out passwords entirely by introducing a “passwordless by default” feature for new account registrations. Users setting up a new Microsoft account will be encouraged to adopt passkeys rather than traditional passwords.

Although Microsoft has offered password-free login options for both Windows 11 and Microsoft accounts for quite some time, 2024 saw an expansion of passkey functionality across devices running Windows, Android, and iOS. This groundbreaking shift is not arbitrary; the intention is to enhance the security of Microsoft accounts while rendering numerous phishing scams ineffective.

Advantages of Passkeys

Compared to traditional passwords paired with various two-factor authentication (2FA) methods, such as SMS codes or authenticator apps, passkeys offer greater ease of use and enhanced security. They are fundamentally more secure—being created through cryptography, stored securely on user devices, and automatically encrypted, which protects them from phishing attacks and other cyber threats. Unauthorized users who don’t possess access to your device cannot compromise your accounts.

Rather than having to devise a complicated password and remember it, users can effortlessly access their accounts via device-based passkeys utilizing biometric verification such as facial recognition or fingerprints, or simple credentials like PINs.

Default Passkeys for New Microsoft Accounts

Moving forward, all new Microsoft accounts will be configured to be “passwordless by default.” Upon the initial registration, users will need to provide their email address and verify it with a one-time code, eliminating the need for password creation and retention. After entering this code, they will be guided to add a passkey through biometrics or PIN. For subsequent logins, users can simply use the selected passkey to gain access.

Users do have the option to postpone the passkey setup; simply select Skip for now during the pop-up prompt. In this scenario, Microsoft will assign the most appropriate password-free login method for the account, which could either be a one-time code or an available passkey.

Current Microsoft account holders can manage their passkeys and remove passwords via the Settings application by navigating to Accounts > Passkeys. According to an announcement from Microsoft, the long-term goal is to eliminate support for passwords altogether.

Embracing a password-free approach marks a critical evolution in enhancing user safety and convenience in online platforms. The transition to passkeys stands as a testament to Microsoft’s commitment towards creating secure user experiences.

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