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Microsoft is currently encouraging users to transition from traditional passwords to more secure authentication methods, such as passkeys and multi-factor authentication (MFA). For instance, a Microsoft account can be configured without a password, relying entirely on passkeys or MFA for login. Nevertheless, the majority of users still prefer signing in with conventional passwords.
To further this transition, Microsoft plans to revise its account registration process so that, by default, new accounts will no longer require the creation of a password. Instead, users will be prompted to select either a passkey or MFA as their primary authentication method. For those who still wish to use a password, Microsoft will offer the option to set one manually.
In preparation for this change, Microsoft will also enhance the login experience by defaulting to passkey and MFA authentication during sign-in, thereby bypassing the traditional password input field altogether.
Currently, Microsoft offers several sign-in options:
- Logging in with a traditional password, often followed by an additional layer of passkey or MFA verification
- Signing in directly using a passkey, with no further verification required
- Generating a login request via the Microsoft Authenticator app, also requiring no additional verification
Once these changes are implemented, accounts already linked with a passkey or Microsoft Authenticator will default to these methods. In such cases, users may no longer see a password prompt at all and can complete the login process within seconds.
Some Microsoft applications or systems may not yet support passkey or MFA-based sign-ins. In these instances, users will still need to authenticate using a password. However, this is not the Microsoft account password itself, but rather a specially generated app-specific password. These passwords are distinct from your main credentials and are created exclusively for use in legacy applications that lack modern authentication support.
In essence, removing your Microsoft account password has no adverse effect, as these special-use cases always require an app-specific password regardless. Should you encounter such a need, you can obtain an app-specific password here.
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