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How To Set Up Custom SMTP for Microsoft 365

Part 1: Prepare the Microsoft 365 Mailbox

You need a dedicated mailbox to act as the "sender." We recommend a licensed user account (like a Microsoft 365 F3 or Business Basic license).

1. Enable SMTP AUTH (Crucial Step)

Microsoft disables "Authenticated SMTP" by default for security. You must turn it on for this specific mailbox:

  1. Log in to the Microsoft 365 Admin Center.

  2. Go to Users > Active Users and select your sender account.

  3. Select the Mail tab and click Manage email apps.

  4. Check the box for Authenticated SMTP.

  5. Click Save changes.

2. Create an App Password (If you use MFA)

If your organization requires Multi-Factor Authentication (MFA), a standard password will not work.

  1. Sign in to the Additional Security Verification page while logged in as the sender account.

  2. Choose Add method > App password.

  3. Give it a name (e.g., "Wizer Training") and copy the generated password. You will use this in Wizer instead of your regular password.

Part 2: Configure Wizer

Now, tell Wizer how to log into your mailbox to send the emails.

  1. In Wizer, go to Account Settings > White Label.

  2. Scroll to Custom SMTP and enter the following:

    • SMTP Host: smtp.office365.com

    • Port: 587

    • Username: The email address used to sign in to the SMTP.

    • Password: Your account password (or the App Password from Part 1).

    • From Address: The email address that your users will see the emails coming form (ex: training@yourdomain.com).

  3. Click Save.

Troubleshooting "Authentication Failed"

If you get an error (like Error 535), check these three things:

  • Security Defaults: If your company has "Security Defaults" turned ON in Entra ID (Azure AD), Microsoft blocks SMTP AUTH entirely. You may need to create a Conditional Access Policy to exclude this one account.

  • The Password: If you have MFA enabled, you must use an App Password. A standard password will result in a "Failed" error every time.

  • Wait for Sync: If you just created the account or changed a setting, Microsoft can take up to 60 minutes to update its global servers.