Microsoft announced on May 1, 2025, that brand-new Microsoft accounts would be passwordless by default: new users could choose from passwordless sign-in methods without enrolling a password. The change applies to new accounts, not automatically to existing ones. Current account holders can keep a password or choose to remove it in their account settings.
What “passwordless by default” means
Microsoft’s announcement changes the sign-in setup for people creating new Microsoft accounts. Instead of requiring a password during account enrollment, Microsoft says new users will be offered passwordless options. The announcement does not establish that the rollout is identical in every region or confirm the current state of every account-creation flow.
Passwordless describes a set of sign-in methods, not one universal replacement credential. Microsoft describes passkeys that use a face, fingerprint, or PIN on a supported device. The Verge also identifies push notifications and hardware security keys as possible options. A physical security key is optional; the announcement does not require buying one. Microsoft’s May 1, 2025 announcement and The Verge’s coverage describe the available approaches.
What existing Microsoft account holders need to do
Nothing changes automatically for existing users under the announcement. If you already have a Microsoft account with a password, you may continue using it; Microsoft said existing users can go to their account settings and delete the password if they choose. The new-account default is not a requirement for existing account holders to remove theirs.
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How passwordless sign-in works
Passkeys
A passkey is a standards-based sign-in method designed to replace passwords and resist phishing. On a supported device, you authenticate with a face, fingerprint, or device PIN rather than typing an account password. The specific device and account setup determine which options are available.
Other available methods
Microsoft’s announcement and The Verge’s account of the options also mention push notifications and hardware security keys. The available method can depend on your setup; the announcement does not say every user will see every option.
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What the new sign-in experience does
Microsoft says its passwordless-preferred flow selects the best available sign-in method on an account rather than displaying every method at once. For example, if an account has both a password and a one-time code set up, Microsoft says it will offer the one-time code first, then prompt the signed-in user to enroll a passkey. In Microsoft’s experiments, this simplified experience reduced password use by over 20%; Microsoft reported that result, and the cited sources do not provide an independent replication.
Why Microsoft is making the change
Microsoft presents passkeys as easier and safer than passwords. Its May 2025 blog reported the following figures in support of broader passkey use:
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- More than 99% of people who sign into their Windows devices with a Microsoft account use Windows Hello.
- Microsoft reported 7,000 password attacks per second in 2024, more than double the 2023 rate, attributing the underlying information to its 2024 Digital Defense Report.
- Nearly one million passkeys were being registered each day.
- Microsoft reported about 98% sign-in success for passkeys versus 32% for password users, and said passkey sign-ins were eight times faster than password-plus-multifactor-authentication sign-ins.
- Microsoft quoted a FIDO Alliance figure that more than 15 billion user accounts can sign in using passkeys instead of passwords.
These are figures reported by Microsoft in its 2025 announcement, not independent measurements or guarantees for an individual user. The FIDO Alliance total is relayed by Microsoft; it is not independently sourced here. Microsoft’s announcement is available at Microsoft Security Blog.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Practical considerations before removing a password
If you are considering making an existing account passwordless, first check which sign-in methods are available for your account and devices and how you would recover access if a device were lost. Passkey availability, synchronization across devices, and recovery options depend on the service and setup. A hardware security key can be one option, but it is not necessary to use Microsoft’s new-account flow. For a method-by-method comparison, weigh phishing resistance and recovery, whether credentials sync or stay on a physical key, device and service support, and the fallback if a device is lost.
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