Microsoft is eliminating passwords for new accounts, prioritizing passkeys, push notifications, and security keys instead. This default passwordless option simplifies the sign-in process and improves security. Existing accounts can still use passwords but are encouraged to switch. Microsoft cites a 98% success rate for passkey logins versus 32% for password-based accounts, with nearly a million passkeys registered daily. The company has rebranded "World Password Day" to "World Passkey Day" to reflect this shift.

Prepared by Jonathan Pierce and reviewed by editorial team.