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Microsoft Entra (Identity)

Entra ID passwordless authentication

By Emil Björk · Microsoft ecosystem consultant, Gothenburg

The realistic options for going passwordless in Microsoft 365 — Authenticator, FIDO2, Windows Hello, and passkeys.

3 min read

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Passwords are the worst part of identity: weak, reused, phishable, expensive to support. Microsoft has been building toward passwordless for a decade and as of 2026 you can realistically run a Microsoft 365 tenant without users typing passwords at all.

Why passwordless

  • Phishing resistance — well-implemented passwordless methods cannot be phished.
  • Better UX — no remembering, no resets, no typing through a fingerprint scan.
  • Lower support cost — password reset tickets disappear.
  • Compliance — many frameworks now require phishing-resistant MFA for privileged users.

The realistic methods

Microsoft Authenticator (passwordless mode)

The Microsoft Authenticator app on iOS/Android supports passwordless sign-in: the user types their username, Authenticator pops a match-the-number prompt with location and app context, biometrics confirm, sign-in completes. This is the easiest passwordless option to roll out and is suitable for most users.

Number matching

The match-the-number prompt is called number matching, and it isn't unique to passwordless sign-in — it's also the default behaviour for ordinary MFA push approval, on any tenant that hasn't specifically disabled it. Instead of a simple "Approve/Deny" push notification (which an attacker can exploit by simply spamming approval requests until a tired user taps approve, a technique known as MFA fatigue or push bombing), Entra ID's sign-in screen displays a two-digit number that the user must read and type into the Authenticator app before the sign-in completes. That extra step means an attacker triggering a push notification from a stolen password can't get through on a blind tap — the victim would have to actively copy a number from an unfamiliar sign-in attempt they can plainly see wasn't theirs. Number matching became the enforced default for all push notifications tenant-wide, replacing the older simple-approve prompt; the change reduced MFA-fatigue attacks meaningfully but didn't eliminate the underlying weakness of push-based MFA generally, since a sufficiently convincing real-time phishing proxy can still relay the number correctly — which is why phishing-resistant methods (FIDO2, Windows Hello for Business, passkeys) remain the stronger recommendation for high-risk accounts, with number matching as the meaningfully-improved baseline for everyone else.

Windows Hello for Business

For Windows devices, Windows Hello for Business binds a user's identity to that device, unlocked by biometrics or a PIN. The device's secure hardware (TPM) signs the authentication request. Strong, phishing-resistant, and zero-friction once enrolled.

FIDO2 security keys

Hardware FIDO2 keys (YubiKey, Feitian, Token2, Windows Hello-compatible smartcards). The user inserts or taps a key and touches it to confirm. Best-in-class phishing resistance, ideal for admins, executives, and high-risk users. They work cross-device.

Passkeys

Passkeys are FIDO2 credentials stored in the OS/browser keychain (iOS Keychain, Google Password Manager, 1Password, Microsoft Authenticator). They sync across a user's devices and provide passwordless sign-in. Microsoft Authenticator supports passkeys for Entra ID; native OS passkey support for Entra ID continues to expand.

Certificate-based authentication (CBA)

For organisations with PKI in place — common in government, defence, and regulated industries — Entra ID supports certificate-based authentication directly. Smart cards and X.509 certificates authenticate without a password.

Rollout strategy

A practical sequence:

  1. MFA on for everyone — table stakes.
  2. Microsoft Authenticator passwordless rolled out tenant-wide.
  3. Windows Hello for Business deployed via Intune to managed Windows devices.
  4. FIDO2 keys issued to admins (every privileged role) and executives.
  5. Remove password as an option for users who've adopted the above — via Authentication Methods policies.
  6. Combined registration so users self-enrol multiple methods on first sign-in.

Holdouts

A few scenarios still need password fallback: shared/kiosk devices, frontline workers on shared phones, legacy apps. Plan for these as exceptions, not defaults.

Passwordless isn't a future technology in 2026 — it's a current best practice with mature tooling.

Frequently asked questions

What passwordless methods does Entra ID support?
Windows Hello for Business (on the device), FIDO2 security keys and passkeys (including Microsoft Authenticator as a passkey provider), Microsoft Authenticator phone sign-in, and certificate-based authentication. Temporary Access Pass is the bootstrap method for registering the others.
Is Microsoft Authenticator push notification passwordless?
Phone sign-in with Authenticator is passwordless: the user enters a username, approves in the app, and matches a number. A push notification used as a second factor after a password is MFA, not passwordless. The difference matters for phishing resistance, where passkeys and FIDO2 keys are the stronger option.
Do I need a licence for passwordless in Entra ID?
No. Authenticator phone sign-in, FIDO2 keys, passkeys, Windows Hello for Business, and certificate-based authentication are available in the free tier of Entra ID. Conditional Access with authentication strengths to require them needs P1.

Further reading

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