Microsoft Makes Passkeys the Default for New Accounts, Enabling Passwordless Login for 15 Billion Users
A year after introducing passkey support for consumer accounts, Microsoft is taking a major step toward a passwordless future by setting passkeys as the default sign-in method for all new accounts.
“From now on, brand-new Microsoft accounts will be passwordless by default,” announced Microsoft executives Joy Chik and Vasu Jakkal. “New users will have multiple passwordless options for signing in and won’t need to create or remember a password. Existing users can also go passwordless by removing their password in account settings.”
The company has also streamlined the sign-up and login experience to prioritize passwordless options. The updated process automatically detects and selects the most secure sign-in method available for the user’s account. For instance, if both a password and a one-time code are options, users will be prompted to use the one-time code. Once logged in, they will be encouraged to set up a passkey for enhanced security.
This shift by Microsoft aligns with similar moves by Apple, Google, Amazon, and others, signaling a broader industry push toward eliminating traditional passwords. With password-related cyberattacks remaining a major threat, passkeys offer a more secure alternative that’s resistant to phishing and other forms of credential theft.
Microsoft first added passkey support to Windows 11 in September 2023, coinciding with Google’s rollout of passkeys as the default login method. Later, Microsoft upgraded Windows Hello to support the technology as well.
Passkeys work by using public/private key cryptography, replacing the need for passwords. When users register with a service, their device (such as a phone or PC) creates a key pair: a private key stored securely on the device and a public key shared with the service. To sign in, the device authenticates the user using biometrics—like fingerprint or facial recognition—then uses the private key to complete the login securely.
In October 2024, the FIDO Alliance, which backs the passkey standard, announced efforts to make passkeys and similar credentials easier to transfer across providers and improve interoperability between systems. As of December 2024, more than 15 billion user accounts support passkey logins.
The FIDO Alliance also recently formed a Payments Working Group (PWG) to explore how passkeys can be used for payment authentication. The group will develop guidelines for integrating FIDO-based passkey solutions with current payment systems, addressing the needs of modern digital commerce.
