Microsoft is implementing a comprehensive transition to passwordless authentication across its services, marking a significant evolution in its years-long push toward more secure authentication methods. The company has established a timeline that began with mandatory multifactor authentication (MFA) for the Azure portal, Microsoft Entra admin center, and Microsoft Intune admin center in October 2024.
The transition continues in 2025, with Microsoft removing password autofill capabilities from its Authenticator app in July. The company plans to complete its shift to passwordless authentication through a three-month period beginning in June 2025, during which the password manager will be removed. The change follows Microsoft’s announcement of native passkey support in Microsoft Authenticator, scheduled for implementation in mid-January 2025.
For new accounts, Microsoft has made passwordless sign-ins the default option, building on the company’s broader initiative with other tech giants through the FIDO Alliance. The updated account creation process requires users to provide an email address and receive a verification code, followed by passkey setup using biometric authentication or PIN, eliminating the need for traditional passwords.
Data from Microsoft indicates that passkeys are demonstrating superior performance compared to traditional authentication methods. The success rate for passkey login attempts stands at 98 percent, significantly higher than the 32 percent success rate for password-based accounts. Login times have also improved, with passkey authentication taking approximately 8 seconds compared to 69 seconds for traditional password and two-factor authentication. These results match similar findings from other organizations implementing passkey technology, including Zoho’s implementation showing six times faster login speeds.
Microsoft has updated its sign-in interfaces to prioritize passwordless methods, resulting in a reported 20 percent reduction in password usage during testing phases. Users of the Microsoft Authenticator app are being advised to export their saved passwords before July 2025, as the app will cease supporting autofill and stored payment features, with all saved passwords scheduled for permanent deletion by August 2025.
The passkey system requires devices equipped with biometric capabilities such as fingerprint scanners or facial recognition, or PIN setup. Microsoft Edge browser users can use its built-in password manager, which synchronizes saved passwords and addresses with Microsoft accounts for autofill functionality. The transition represents part of Microsoft’s broader strategy to replace traditional passwords with passkeys for over 1 billion users across its platforms, including Outlook, Xbox, and Microsoft 365.
