Microsoft Authenticator Ditches Password Storage: What It Means and What You Should Do Next

Introduction: A New Chapter in Password Security

Microsoft is officially phasing out password management features in its Authenticator app, signaling a major shift toward a passwordless future. For years, Microsoft Authenticator served as a handy tool for both multi-factor authentication and basic password storage. But now, with the rise of more secure and seamless technologies like passkeys, the company is steering users toward stronger, more modern digital identity systems.

This change is more than a feature retirement — it’s part of a broader industry-wide pivot away from traditional passwords. If you’re among the many who relied on Microsoft Authenticator to manage logins, you’ll need to act fast before key functionality disappears. Here’s what you need to know.

Microsoft’s Move Away from Passwords

Microsoft has announced that the password manager feature in its Authenticator app will be discontinued in a phased approach across three months:

June: Users can no longer add or import new passwords in the app.
July: The app loses the ability to autofill passwords.

August: Saved passwords will become completely inaccessible.

Despite this, Microsoft Authenticator will continue to serve its primary function—generating time-based one-time passwords (TOTP) for multi-factor authentication (MFA). It simply won’t act as a vault for passwords anymore.

So, what should users do?

Microsoft suggests migrating saved passwords to the Microsoft Edge browser, which syncs with your Microsoft account. It also nudges users to audit and delete outdated or unused credentials in the process.

But the company isn’t just pushing users toward Edge. It’s advocating for the adoption of passkeys, a new form of login that’s more secure and user-friendly. Passkeys rely on biometric authentication (fingerprint, facial recognition), PINs, or physical security keys—methods that are harder to compromise than traditional passwords.

While syncing passkeys across devices—especially across platforms—can still be a challenge, tools like Authenticator itself (now doubling as a passkey provider) or other third-party password managers can bridge the gap.

Microsoft has provided a detailed guide on how to register passkeys within the Authenticator app on Android or iOS. Users can also choose third-party apps to manage passkeys for better cross-device compatibility.

What Undercode Say:

This is not just a product update — it’s a wake-up call for the password-dependent masses. Microsoft’s decision to retire password management in Authenticator is a calculated push to get users off legacy security methods and into more futureproof, phishing-resistant alternatives.

Why now? Password breaches remain one of the top cybersecurity threats globally. By eliminating storage and autofill for passwords within Authenticator, Microsoft reduces the attack surface on one of its most widely-used security tools. It’s not just about promoting better habits—it’s about eliminating poor ones by force.

While Microsoft recommends Edge for password autofill, that’s only a stopgap. The real goal is to push users toward passkeys, which function like cryptographic keys stored on your device. They’re tied to your physical presence (via biometrics or PINs) and can’t easily be phished or reused on other platforms — a major win for digital safety.

For enterprises, this shift could simplify IT security management. No more password reset requests, fewer phishing risks, and smoother onboarding/offboarding processes. For users, passkeys promise less cognitive load (no remembering 20-character gibberish passwords) and fewer interruptions.

But let’s not overlook the elephant in the room: interoperability. Passkeys are still maturing, and syncing them between ecosystems (say, Windows and iOS) can be clunky. Until cross-platform syncing becomes frictionless, some users might face headaches during the transition.

Another consideration: privacy-conscious users may not want to hand over even more of their authentication process to big tech ecosystems like Apple, Google, or Microsoft. There’s also concern that centralized biometric access might eventually be leveraged for targeted surveillance or behavioral tracking.

Still, Microsoft is setting a precedent here—and

The bottom line? The password as we know it is dying, and Microsoft is putting another nail in its coffin. If you haven’t already begun experimenting with passkeys, now is the time.

🔍 Fact Checker Results:

✅ Microsoft confirmed phased retirement of password features via official support documentation.
✅ Passkeys are already supported in Authenticator for Microsoft accounts.
✅ Users can migrate stored credentials to Microsoft Edge or other password managers.

📊 Prediction:

By mid-2026, most mainstream platforms—especially those under Microsoft, Apple, and Google—will phase out password-based login for general users, replacing them with passkeys by default. Authenticator will evolve into a universal passkey manager, and Microsoft Edge will become more tightly integrated with both passwordless login and biometric verification tools. Expect major enterprises and SaaS platforms to mandate passkey-based login flows as a baseline security measure by late 2025.

References:

Reported By: www.zdnet.com
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