Passkeys to replace Passwords: What It Means for Your Business

Passwords are on their way out, and Microsoft is leading the charge with passkeys: a more secure, phishing-resistant method of logging in using your face, fingerprint, or device PIN. Windows 11 now makes passkeys easier to use and manage, signalling the start of a password-free future. Here’s what it means for your business.

03.10.25 Charles Griffiths

When was the last time you thought about how you log in to your accounts? Or how secure those logins really are?

For decades, passwords have been the norm. But let’s face it: they’re are a pain. They’re easy to forget, often reused, and a prime target for cybercriminals.

That’s where passkeys come in. And now, Microsoft is making them easier than ever to use in Windows.

PS if you save your passwords anywhere that isn’t a password manager. Delete or bin them immediately and do better.

What Exactly Is a Passkey?

A passkey is the modern replacement for your password. Instead of typing in your password “Barney030515” (mixing your dog’s name and your middle child’s DOB isn’t secure by the way), you sign in using something far safer: your face, fingerprint, or a secure PIN tied to your device.

Behind the scenes, passkeys use advanced cryptography (don’t worry about the technical know-how, just trust us here). There’s no password for hackers to steal because the passkey is split into two parts:

  • One stays on your device.
  • One stays with the service you’re logging into.

They work together like the lock on your door and your key does. But the key never leaves your pocket (in this case, device). That means phishing scams have a much harder time tricking you, as they would need either your face or fingerprint, or physically require your device.

Screenshot of Windows 11 settings showing the passkeys.

What’s Changing in Windows?

Until now, using passkeys in Windows has been, let’s be honest, a little clunky. You often had to rely on third-party apps, and setup wasn’t always clear.

Microsoft is fixing that. Windows 11 is rolling out new features that make passkeys easier to use and manage.

Here’s what’s new:

  • Integration with 1Password: If you use 1Password, syncing your passkeys will be smooth.
  • Support for other password managers: Microsoft has released tools so other password managers, like Keeper Security, can integrate easily.
  • A clear shift away from passwords: The Microsoft Authenticator app is phasing out password management. Passkeys will become the default method for signing in to Microsoft accounts.

Right now, these updates are in preview builds of Windows 11, but this is a clear sign of the future: passwords are so 2024 and passkeys are the new black.

What Does This Mean for Your Business?

Here’s the bottom line: passwords are one of the weakest links in your security. If your team is still relying on them without the safety net of passkeys (or another type of MFA), you’re at higher risk of phishing attacks and data breaches.

Passkeys are:

  • More secure (harder to steal, harder to phish)
  • Easier for staff (no more forgotten passwords)
  • Aligned with where the industry is heading

This isn’t just a shiny tech upgrade designed to make Windows 11 stand out, it’s a must-have security upgrade that reduces risk and improves productivity.

How Hard are Passkeys to use?

The good news? If you’re already using Microsoft 365 and Windows 11, you’re halfway there. Here’s what using passkeys looks like:

  • Enable passkey support in your Microsoft environment.
  • Update your devices: Passkeys work best on Windows 11, and if you’re still on Windows 10 without a good reason, you have bigger worries than the ability to use passkeys.
  • Integrate with your password manager: Tools like 1Password, Keeper, or Bitwarden now support passkeys.
  • Train your team: A short session on how to use passkeys will prevent confusion and reduce support tickets.

How much do Passkeys cost?

If you’re on Microsoft 365, the core passkey functionality is included (no extra cost).
However, if you want to manage passkeys across multiple apps and devices, you’ll likely need a password manager.

Two people in an office setting at AAG IT Services, with one seated at a desk working on a computer and the other standing nearby. The desk features a monitor, keyboard, papers, and a clock, while a framed sports jersey hangs on the wall. Represents AAG IT Services’ Managed IT Support in a professional workspace.

How much do password managers cost?

Passkeys are the future, but the reality is: not every app or system supports them yet. That means your business will need to manage a mix of old passwords and new passkeys for the foreseeable.

The easiest way to do that? A business-grade password manager.

It keeps everything secure in one place and supports passkeys as they roll out across your apps.

The cost? From just £4.50 per user, per month.

Don’t forget. To make it work for your business, you need:

  • Proper setup and integration with your systems
  • Onboarding so your team actually uses it
  • Training to make adoption stick
  • Ongoing support when questions pop up

That’s where an award-winning Managed Service Provider, like AAG IT Services, comes in.

We don’t just sell you the software; we implement the change management and integrate it into your security strategy. Why? So, when Microsoft says “passwords are dead,” your business is ready.

That’s the benefit of a proactive IT support provider.

Our Take

This change by Microsoft is a big step forward for security and usability. Businesses that adopt passkeys early will not only reduce their risk but also make life easier for their teams. The alternative means staying stuck with passwords and all the headaches that come with them.

If you’d like help understanding passkeys or preparing your business for a password-free future, get in touch with us today.

Looking for support on Passkeys?

Passkeys are coming fast. Is your business ready? We provide IT and technology support for local businesses. Contact us today.
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Passkey Frequently Asked Questions

What is a passkey and how is it different from a password?

A passkey replaces your password with something more secure, like your fingerprint, face, or a device-based PIN. Unlike passwords, passkeys can’t be stolen through phishing because they never leave your device.

Do I still need Multi-Factor Authentication (MFA) if I use passkeys?

Passkeys are considered a strong form of authentication, but MFA is still recommended for sensitive accounts. Think of it as an extra safety net.

Will passkeys work on all my devices and apps?

No, not right now. Passkeys work best on Windows 11 and modern browsers. Many major apps and services already support them, and adoption is growing fast. But if you use older systems, you may not be able to use passkeys.

How do I enable passkeys in Microsoft 365?

You’ll need to enable FIDO2/passkey authentication in Microsoft Entra ID (formerly Azure AD). Then, users can register passkeys via My Sign-Ins. (We can provide a step-by-step guide if you need help.)

What happens if I lose my device?

You can revoke the passkey from your Microsoft account or password manager and register a new one. Always keep a backup method like a security key or recovery code.

How much does it cost to use passkeys?

If you’re on Microsoft 365, the core functionality is included. Extra costs only apply if you use a third-party password manager for advanced features.

Are passkeys really more secure than passwords?

Yes. Passkeys use cryptographic keys that can’t be guessed or phished. They’re tied to your device, so even if someone steals your username, they can’t log in without your device and biometric or PIN.

Do I need a password manager if I use passkeys?

We recommend using both a password manager and passkeys; however, you can use passkeys without a password manager. Windows 11 and Microsoft Authenticator can handle passkeys. However, if you want to manage multiple accounts across platforms, a password manager like 1Password or Keeper Security can be helpful and enhance your business security.

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