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Microsoft pushed passkeys further and made new accounts passwordless by default

In its May 1, 2025 security update, Microsoft said it was refining sign-in around passkeys, making new accounts passwordless by default, and steering users toward safer sign-in methods automatically.

Microsoft passkeys official article preview
Microsoft
May 1, 2025 4 min read

Microsoft pushed passkeys further and made new accounts passwordless by default

In its May 1, 2025 security update, Microsoft said it was refining sign-in around passkeys, making new accounts passwordless by default, and steering users toward safer sign-in methods automatically.

Microsoft framed the update around passkey adoption

The post marked the first World Passkey Day and said Microsoft joined the FIDO Alliance’s Passkey Pledge. It also repeated a striking usage figure: more than 99% of people who sign into their Windows devices with a Microsoft account already do so with Windows Hello.

That sets the tone for the whole piece. Microsoft is not presenting passkeys as a side option anymore; it is talking like the password era is already on its way out.

The numbers in the post were blunt

Microsoft says it saw 7,000 password attacks per second in the prior year. It also says it is now seeing nearly a million passkeys registered every day, that passkey users are successful about 98% of the time versus 32% for password users, and that passkey sign-ins are eight times faster than a password plus multifactor flow.

Those are big claims, but they are also very concrete. When a company starts publishing success-rate and speed comparisons like that, it usually means the internal adoption curve is already well underway.

Three product changes mattered most

Microsoft highlighted a redesigned sign-in experience, new accounts that are passwordless by default, and a passwordless-preferred flow that automatically picks the best available sign-in method on the account. If a user has a one-time code and a password, for example, Microsoft says it will guide that person toward the safer option first and then prompt passkey enrollment.

For anyone watching the future of login flows, this is the interesting part. The company is not just supporting passkeys; it is changing defaults so people drift toward them almost naturally.

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