As part of this, new Microsoft accounts are password-less by default. How to set up a passkey with Microsoft Microsoft has said it will automatically prompt users to set up a passkey in Authenticator.

So, if you use Microsoft Authenticator to store passwords, you should have been — or will soon be — urged to set up a Microsoft passkey.

Using passkeys is a safer alternative to the risky password habits 49% of US adults use, according to CNET's password survey.