Microsoft has made it so you can better access your Microsoft account through your smartphones, doing away with passwords in favor. Although less secure than complete two-factor authentication, Microsoft believes this method to be more secure than ordinary passwords and more user-friendly.
http://www.notebookcheck.net/Microsoft-s-new-Authenticator-app-means-those-with-Microsoft-accounts-may-no-longer-need-to-type-passwords.213480.0.html