Microsoft has taken a bold step toward eliminating traditional passwords by making passwordless authentication the default option for all new Microsoft accounts.
Starting May 2025, users creating new Microsoft accounts will no longer be prompted to create conventional passwords. Instead, they will be directed to use more secure authentication methods like passkeys, push notifications, and security keys.
This major shift comes after Microsoft's long-term efforts to move away from password-based security. The company has already been supporting passwordless Windows logins and allowing existing users to remove passwords from their accounts.
The tech giant has also unveiled a redesigned sign-in interface, streamlining the login process for passwordless and passkey-first experiences. While existing account holders can keep their passwords, they have the option to switch to passwordless authentication through their account settings.
Microsoft reports impressive adoption rates for passkey authentication, with nearly one million passkeys being registered daily. The success rate for passkey logins stands at 98 percent, compared to just 32 percent for traditional password-based logins.
To mark this transition, Microsoft has renamed "World Password Day" to "World Passkey Day" and committed to expanding passkey implementation throughout the coming year. This initiative builds on the company's previous integration of passkeys into consumer accounts last year.
The move represents Microsoft's strongest push yet toward a passwordless future, prioritizing more secure and user-friendly authentication methods for its global user base.