Microsoft says new accounts will be “passwordless by default”, asking people to use more secure methods like passkeys, push notifications, and security keys
The company is trying to get everyone to get rid of passwords, eventually.
Context & Ripple Effects
Microsoft has been building toward this change for years: it enabled password-free sign-in options in 2021 and later made passkeys available to consumer-account owners across Windows, Android, and iOS. The new-account setting turns that optional capability into the default onboarding path.
This matters because account creation is where authentication habits are established. Microsoft is using its consumer-account flow to normalize passkeys, authenticator prompts, and security keys rather than asking users to opt into them later.
First-order effects
- New Microsoft account holders will be guided into passwordless sign-in methods from the outset, changing the default setup experience for consumer accounts.
- Microsoft concentrates its authentication choices around passkeys, push notifications, and security keys, extending a path that began with password-free account access rather than introducing a separate system.
Second-order effects
- Users and support channels will need to handle more device-based sign-in and recovery journeys, making the quality of enrollment and fallback flows more consequential.
- The default raises the practical value of passkey-compatible devices, authenticators, and security keys for people who use Microsoft accounts across platforms.
Third-order effects
- If other large account providers similarly move passwordless methods from opt-in to default, passwords may increasingly become a compatibility and recovery layer rather than the primary credential.
- The shift reinforces an industry move toward authentication tied to devices and cryptographic credentials, while leaving account recovery as a central trust and usability challenge.
The trend: Major platforms are moving passwordless authentication from an optional security feature into the standard account-creation experience.