IT Strategies & Trends for Growing Non-Profits and Small Businesses

What Is a Password Key and Why Microsoft Is Ditching Passwords

Written by Ann Brual | Aug 4, 2025 7:00:00 PM

Passwords have been the gateway to our digital lives for decades. But let’s face it—they're far from perfect. Weak passwords, password reuse, phishing attacks, and data breaches have made traditional logins a huge security risk. That’s why Microsoft—and much of the tech world—is turning to a better solution: password keys, also known as passkeys. If you’ve been wondering why tech giants are phasing out passwords and what password keys actually are, this post breaks it down clearly and simply.

The Problem with Passwords

Before diving into passkeys, it helps to understand why passwords are no longer cutting it:

  • They’re easy to forget.
    Most users juggle dozens of online accounts, making unique passwords hard to remember.

  • They’re often reused.
    When people reuse passwords across sites, one breach can expose them all.

  • They’re vulnerable to attacks.
    Phishing, keyloggers, and brute-force attacks can easily steal or guess passwords.

  • They require constant updates.
    Companies often prompt regular password changes, which frustrates users and doesn’t always improve security.

What Is a Password Key (Passkey)?

A password key is a digital credential tied to your device that replaces your password altogether. It’s based on public key cryptography, a secure and modern approach to authentication. You no longer type a password—instead, you unlock your device with your fingerprint, face scan, or device PIN, and the system logs you in securely.

Think of a passkey as a smart, phishing-resistant identity card built into your device.

How Password Keys Work

Passkeys work by generating two cryptographic keys:

  • A public key that’s stored on the service you’re logging into (like Microsoft, Google, or your nonprofit’s donation portal).

  • A private key that never leaves your device. This key is used to prove your identity.

When you try to log in, the service asks for proof you hold the private key. Your phone or computer uses biometrics (or another method like a PIN) to verify you—and logs you in without ever transmitting a password.

Why Microsoft Is Moving Toward Passwordless Logins

Microsoft is at the forefront of the Passwordless movement. With support for passkeys built into Windows 11 and Microsoft Entra ID, they’re encouraging users and organizations to make the switch for a few major reasons:

  1. Stronger Security
    Passkeys are resistant to phishing, credential stuffing, and other attacks that plague passwords.

  2. Simpler User Experience
    No more memorizing or resetting passwords. Just use your face, fingerprint, or device login.

  3. Seamless Across Devices
    Using standards like FIDO2, passkeys work across platforms—so you can log in on your laptop with a passkey stored on your phone.

  4. Better Compliance and Control
    For nonprofits and organizations with sensitive data, passwordless authentication helps meet security standards while reducing IT overhead.

What This Means for Nonprofits and Small Teams

If you're managing volunteers, donors, or team members in a nonprofit environment, moving to passkeys means:

  • Fewer password resets and support tickets.

  • Less risk of unauthorized access to sensitive files or donor data.

  • A smoother experience for remote team members and collaborators.

  • Better alignment with modern digital security standards.

Getting Started with Password Keys

If you’re ready to explore a passwordless future:

  • Check if your devices support passkeys. Newer phones, tablets, and laptops with biometric login usually do.

  • Use Microsoft’s tools. Microsoft Entra ID (formerly Azure AD) and Windows Hello are great places to start.

  • Partner with a trusted IT team. Heartfelt IT can help your organization assess its current setup and make a smooth, secure transition to modern authentication.

Goodbye Passwords. Hello Peace of Mind.

The future of secure logins is here—and it’s a lot simpler than you might think. Password keys remove the weakest link in the digital security chain: the password itself.

At Heartfelt IT, we’re excited to help nonprofits and mission-driven organizations embrace smarter, safer technology. Ready to learn more about going passwordless?

Let’s talk.
Visit heartfeltit.com to start your security journey today.