According to Google By The End of the Year Passwords might Become a thing of the Past | Mobile phone latest news Google+ Follow Smartfonefreaks on Twitter

On Android devices at least.
Daniel Kaufman, at a developer’s conference Friday during Google I/O, revealed that Google had plans to make password identifications obsolete by the end of the year.
The plan will be to rely on a new set of technologies being developed by Google’s Advanced Technology and Projects division. ATAP calls this new technology Trust API.
Google believe that phones are smart enough to know when passwords are really starting to show their age. 
According to Kaufman “We have a phone, and these phones have all these sensors in them,
“Why couldn’t it just know who I was, so I don’t need a password? It should just be able to work.”

Trust API would use a variety of metrics to calculate a “Trust Score,” which is essentially, its belief that you are who you are supposed to be.
The Trust Score would consider things like your typing speed, vocal patterns, facial recognition, location, and proximity to familiar Bluetooth devices and wifi hotspots. 
So low risk apps like games and basic tools wouldn’t need to bother with high trust scores to run, On the other hand, banking apps or other highly sentive apps would need a much, much higher trust score.
 If all goes according to plan, this could well be our reality by the end of 2016 and Trust API is what we'll be using.

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