Anyone setting up a new Microsoft account will soon find they’re encouraged to use a passkey during the sign-up process.

Microsoft introduced passkey support across most of its consumer apps last year, allowing users to sign into their accounts without the need for 2FA methods or remembering long passwords. A year later, it’s removing passwords as the default and encouraging all new signups to use passkeys.

PCMag attempted to sign up for a new Microsoft account on May 2, but it still asked for a password at the time of publication. Microsoft hasn’t shared an exact timeframe for when the change will take place, but you should expect it to happen in the coming days.

This is the first time a new account can be entirely passwordless. Previously, it had to have one alongside your passkey.

In a blog post, Microsoft says 98% of passkey attempts to log in are successful, while passwords are only at 32%. Microsoft is also introducing what it calls a “streamlined” sign-in experience for all accounts that “prioritizes passwordless methods for sign-in and sign-up.” It means some UX design changes to highlight passkey functionality.


More

HYPR: The State of Passwordless Identity Assurance 2026

Crucial Insights Into Identity Threats, Technologies and Trends The sixth annual 2026 State of Passwordless…

Read More →

Computing: Passwordless authentication gaining popularity, Computing research finds

Half of UK IT leaders polled say their organisation is now using passkeys. Passkeys are…

Read More →

Finextra: Deep Dive: Mastercard Verifiable Intent vs Visa Trusted Agent Protocol

Agentic commerce breaks a core assumption of online payments, that a human is directly clicking…

Read More →


123317 Next

Subscribe to the FIDO newsletter

Stay Connected, Stay Engaged

Receive the latest news, events, research and implementation guidance from the FIDO Alliance. Learn about digital identity and fast, phishing-resistant authentication with passkeys.