Major technology companies are driving widespread adoption of passkeys as a more secure alternative to traditional passwords, with Microsoft leading the charge to eliminate passwords for over one billion users. Passkeys use public-key cryptography to generate two keys: a public key stored on service providers’ servers and a private key that remains on users’ devices.
Microsoft has emerged as a leader in passkey implementation, making significant updates to expand support across its ecosystem. The company’s commitment to eliminating passwords comes amid a reported 200 percent surge in cyberattacks. Recent Windows 11 updates have introduced third-party passkey support, while the company has announced plans to add native passkey support to Microsoft Authenticator by mid-2025.
Data shows that passkeys offer substantial improvements in both security and user experience. Users can authenticate three times faster with passkeys compared to traditional passwords, and eight times faster than password-plus-MFA combinations. The success rate for passkey authentication reaches 98 percent, significantly higher than the 32 percent success rate observed with password-based authentication.
The authentication process uses Web Authentication (WebAuthn) standards, developed through collaboration between the FIDO Alliance and W3C. When users attempt to log in, the service issues a challenge using the public key, which the device’s private key can respond to without exposing sensitive information. The system provides banking-grade security while simplifying the user experience through device PINs or biometric verification like FaceID or TouchID.
Microsoft’s implementation strategy includes positioning passkey sign-in as the default option and incorporating strategic prompts to encourage user enrollment. The company provides comprehensive guidance on passkey usage to facilitate adoption, building on its existing passwordless initiatives including Windows Hello biometric authentication.
Industry analysts project continued expansion of passkey adoption through 2025, particularly in the banking sector, where the enhanced security features meet regulatory compliance requirements while improving the end-user experience. Major financial institutions like the National Australia Bank have already announced plans to completely phase out traditional passwords in favor of biometric and passkey authentication methods.
Sources: Geekflare, Make Tech Easier, Mobile ID World, Security Boulevard, Geekflare
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