Microsoft begins default use of passkeys for new accounts
Let’s get straight to the point. As of May 1, 2024, Microsoft is replacing traditional password login with passkeys by default for all new accounts. That’s a big move. It’s a clear signal that the era of remembering complex character strings is winding down. Instead, users will sign in using something they already have or are, like their face, a fingerprint, or a device-based PIN. Microsoft isn’t just adding another option; they’re reshaping the login experience for new users to be streamlined, secure, and frictionless from the start.
Now, Microsoft has been offering alternative login methods for a while. Nothing really new there. But shifting to make passkeys the default is important. It’s about decisive simplification and better user experience. If you’re in the C-suite, this is less about individual convenience and more about systemic efficiency. Passkeys improve success rates at login, reduce lost time, shed help desk costs, and tighten access control, all of which directly affect scale, customer satisfaction, and security compliance.
Numbers back this. According to Microsoft President of Identity and Network Access, Joy Chik, and Corporate VP of Security Vasu Jakkal, users using passkeys are about three times more successful at signing in compared to traditional password users, 98% versus 32%. Not a marginal difference. That’s a signal that the system is doing its job better.
This shift also reflects a maturity in authentication technologies. Infrastructure is finally catching up to the expectations of modern users. For organizations onboarding at scale, employees, customers, or partners, this is the model to watch: secure by design, easy by default.
Microsoft isn’t doing this in isolation. They’re pushing a future standard where passwords become the fallback, not the foundation. For every CXO leading digital transformation, that’s worth taking seriously.
Microsoft underscores the security and user experience advantages of passkeys
Passwords have been failing us for a long time. They’re hard to remember, easy to steal, and nearly impossible to manage securely at scale. Microsoft gets this. That’s why they’re making passkeys the standard, not just because it’s more convenient, but because it actually works.
Here’s the core of it: passkeys replace something you know (your password) with something you are (your biometric) or something you have (your trusted device). It sounds simple. It works better. And it’s more resistant to phishing, one of the most common ways attackers gain unauthorized access. That alone takes a major chunk of risk off the table, especially in high-scale enterprise environments where a single breach can create cascading impact.
For large organizations, better security usually comes with more complexity. Passkeys lower both risk and effort. Microsoft reports that 99% of Windows users are already using Windows Hello, its biometric login system. So the infrastructure is in place. What this means for business leaders is clear: you’re not asking users to do anything unfamiliar. You’re simply making the secure choice the easy one.
From an IT operations standpoint, removing passwords reduces attack surfaces and associated maintenance overhead. From a customer experience perspective, fewer failed logins and elimination of password reset cycles translates to smoother onboarding, greater session continuity, and higher user satisfaction. These are measurable upgrades across user interaction and operational depth.
This is about adopting security and usability practices that are statistically better. Passkeys win on both fronts. The decision for leaders here isn’t whether passkeys are secure enough. That’s already clear. The decision is how fast your organization can standardize around this method and move forward.
Microsoft designs a gradual transition strategy
Microsoft isn’t forcing users to change overnight. For existing accounts, passwords still work, for now. However, the system is designed to actively guide users toward more secure alternatives. That’s crucial. Getting to passwordless isn’t just a product update, it’s a behavioral shift. And Microsoft is methodically managing that shift.
Here’s what’s happening. When a current user logs in with a password and a one-time code (like SMS or app-based authentication), Microsoft will prompt them to drop the password in favor of the passkey method. The system evaluates available authentication options and nudges users toward the most secure one, what the company calls “the best available method.” In most cases, that’s a PIN or biometric login, depending on the device.
This approach matters for enterprises managing legacy systems and mature user bases. You can’t afford to alienate your existing customers or internal teams with abrupt security transitions. Microsoft’s strategy respects continuity while guiding adoption forward. It’s responsive, not invasive. That’s the right pace to minimize disruption and avoid pushback.
For technology and security leaders, it’s also an opportunity to reduce reliance on fragile authentication systems over time. Each step away from traditional passwords reduces attack vectors, no brute-force breaches, no credential stuffing, no recovery cycles. But because the change is layered in, you maintain system usability while strengthening security behind the scenes.
This approach isn’t about flipping a switch. It’s about migrating user behavior and internal operations into a more secure future, without creating friction or failure points. Companies that replicate this tiered rollout model can strengthen trust while compressing long-term support costs and enhancing identity assurance across the board.
Industry collaboration via the FIDO alliance
Microsoft’s move toward default passkeys isn’t a standalone decision, it’s part of a broader alignment within the tech industry to eliminate passwords entirely. This shift is being driven in coordination with the FIDO (Fast Identity Online) Alliance and the World Wide Web Consortium, two organizations working to standardize modern, phishing-resistant authentication practices. These are active, global rollouts supported by platforms people and businesses use every day.
Alongside Microsoft, both Google and Apple have publicly committed to implementing FIDO-approved passkey support across their ecosystems. Google is rolling out these passkeys across Chrome, Android, and ChromeOS. Apple is building the same capabilities into its platforms, including macOS and iOS. Microsoft is integrating these standards through Windows Hello and its online account services. The result: consistent and secure user experiences across device manufacturers, browsers, and operating systems.
This matters for enterprise leaders. Fragmented authentication systems increase administrative burden and break user continuity. FIDO standards fix that. They create a shared framework that allows secure logins across major platforms, without passwords. That reduces the cost of user onboarding, cuts breach exposure, and eliminates the need to issue or manage credentials that are inherently weak.
Andrew Shikiar, Executive Director and Chief Marketing Officer of the FIDO Alliance, put it clearly: this new level of cross-platform passkey implementation “stands to usher in a new wave” of secure login capabilities, giving service providers a spectrum of deployment options focused on low-friction and high-trust authentication.
If your organization operates across multiple platforms or serves a global user base, this level of alignment makes integration faster, support simpler, and security stronger. The industry isn’t moving towards passwordless access, it’s already building it out. The question for executives now is whether your strategy assumes that future or still relies on tools that no longer scale effectively in the current threat landscape.
Key takeaways for decision-makers
- Microsoft sets passkeys as default for new accounts: Enterprises should expect a shift in user expectations, Microsoft’s default move to passkeys shows that secure, frictionless login is becoming baseline. New accounts skip passwords altogether, reducing user error and improving login success rates.
- Passkeys offer stronger security and better UX: Leaders should prioritize passwordless adoption to reduce phishing risks and improve user experience. With 99% of Windows users already on biometric systems, the infrastructure exists, the barrier now is leadership inertia, not technology readiness.
- Microsoft uses a phased rollout for existing users: Organizations planning authentication upgrades should consider a gradual transition strategy. Microsoft’s prompt-based approach eases users into stronger methods without disrupting existing workflows, minimizing resistance while upgrading overall security posture.
- FIDO-backed industry collaboration boosts adoption: Executives should align internal security roadmaps with FIDO standards, as major players like Microsoft, Google, and Apple have committed to system-wide passkey support. This cross-platform alignment reduces integration friction and accelerates safe, scalable authentication deployment.
