diff --git a/backend/config/config.go b/backend/config/config.go
index 8017cfba..62f6d7a4 100644
--- a/backend/config/config.go
+++ b/backend/config/config.go
@@ -11,6 +11,7 @@ import (
 	"github.com/knadh/koanf/providers/file"
 	"github.com/teamhanko/hanko/backend/ee/saml/config"
 	"golang.org/x/exp/slices"
+	zeroLogger "github.com/rs/zerolog/log"
 	"log"
 	"strings"
 	"time"
@@ -20,6 +21,7 @@ import (
 type Config struct {
 	Server      Server           `yaml:"server" json:"server,omitempty" koanf:"server"`
 	Webauthn    WebauthnSettings `yaml:"webauthn" json:"webauthn,omitempty" koanf:"webauthn"`
+	Smtp        SMTP             `yaml:"smtp" json:"smtp,omitempty" koanf:"smtp"`
 	Passcode    Passcode         `yaml:"passcode" json:"passcode" koanf:"passcode"`
 	Password    Password         `yaml:"password" json:"password,omitempty" koanf:"password"`
 	Database    Database         `yaml:"database" json:"database" koanf:"database"`
@@ -83,6 +85,8 @@ func Load(cfgFile *string) (*Config, error) {
 		return nil, fmt.Errorf("failed to post process config: %w", err)
 	}
 
+	c.arrangeSmtpSettings()
+
 	if err = c.Validate(); err != nil {
 		return nil, fmt.Errorf("failed to validate config: %s", err)
 	}
@@ -109,15 +113,18 @@ func DefaultConfig() *Config {
 			UserVerification: "preferred",
 			Timeout:          60000,
 		},
+		Smtp: SMTP{
+			Port: "465",
+		},
 		Passcode: Passcode{
-			Smtp: SMTP{
-				Port: "465",
-			},
 			TTL: 300,
 			Email: Email{
 				FromAddress: "passcode@hanko.io",
 				FromName:    "Hanko",
 			},
+			Smtp: SMTP{
+				Port: "465",
+			},
 		},
 		Password: Password{
 			MinPasswordLength: 8,
@@ -175,6 +182,10 @@ func (c *Config) Validate() error {
 	if err != nil {
 		return fmt.Errorf("failed to validate webauthn settings: %w", err)
 	}
+	err = c.Smtp.Validate()
+	if err != nil {
+		return fmt.Errorf("failed to validate smtp settings: %w", err)
+	}
 	err = c.Passcode.Validate()
 	if err != nil {
 		return fmt.Errorf("failed to validate passcode settings: %w", err)
@@ -360,8 +371,9 @@ func (e *Email) Validate() error {
 
 type Passcode struct {
 	Email Email `yaml:"email" json:"email,omitempty" koanf:"email"`
-	Smtp  SMTP  `yaml:"smtp" json:"smtp" koanf:"smtp"`
 	TTL   int   `yaml:"ttl" json:"ttl,omitempty" koanf:"ttl" jsonschema:"default=300"`
+	//Deprecated: Use root level Smtp instead
+	Smtp SMTP `yaml:"smtp" json:"smtp,omitempty" koanf:"smtp,omitempty" required:"false" envconfig:"smtp,omitempty"`
 }
 
 func (p *Passcode) Validate() error {
@@ -369,10 +381,6 @@ func (p *Passcode) Validate() error {
 	if err != nil {
 		return fmt.Errorf("failed to validate email settings: %w", err)
 	}
-	err = p.Smtp.Validate()
-	if err != nil {
-		return fmt.Errorf("failed to validate smtp settings: %w", err)
-	}
 	return nil
 }
 
@@ -651,6 +659,17 @@ func (c *Config) PostProcess() error {
 
 }
 
+func (c *Config) arrangeSmtpSettings() {
+	if c.Passcode.Smtp.Validate() == nil {
+		if c.Smtp.Validate() == nil {
+			zeroLogger.Warn().Msg("Both root smtp and passcode.smtp are set. Using smtp settings from root configuration")
+			return
+		}
+		
+		c.Smtp = c.Passcode.Smtp
+	}
+}
+
 type LoggerConfig struct {
 	LogHealthAndMetrics bool `yaml:"log_health_and_metrics,omitempty" json:"log_health_and_metrics" koanf:"log_health_and_metrics" jsonschema:"default=true"`
 }
diff --git a/backend/config/config.yaml b/backend/config/config.yaml
index 4484cca0..9098b7d9 100644
--- a/backend/config/config.yaml
+++ b/backend/config/config.yaml
@@ -4,13 +4,13 @@ database:
   host: localhost
   port: 5432
   dialect: postgres
-passcode:
-  email:
-    from_address: no-reply@hanko.io
-  smtp:
+smtp:
     host: smtp.example.com
     user: example
     password: example
+passcode:
+  email:
+    from_address: no-reply@hanko.io
 secrets:
   keys:
     - abcedfghijklmnopqrstuvwxyz
diff --git a/backend/config/config_test.go b/backend/config/config_test.go
index c32f1ea2..ff7a0344 100644
--- a/backend/config/config_test.go
+++ b/backend/config/config_test.go
@@ -21,6 +21,11 @@ func TestDefaultConfigAccountParameters(t *testing.T) {
 	assert.Equal(t, cfg.Account.AllowSignup, true)
 }
 
+func TestDefaultConfigSmtpParameters(t *testing.T) {
+	cfg := DefaultConfig()
+	assert.Equal(t, cfg.Smtp.Port, "465")
+}
+
 func TestParseValidConfig(t *testing.T) {
 	configPath := "./config.yaml"
 	cfg, err := Load(&configPath)
@@ -32,6 +37,28 @@ func TestParseValidConfig(t *testing.T) {
 	}
 }
 
+func TestPasscodeSmtpSettingsCopiedToRootLevelSmtp(t *testing.T) {
+	configPath := "./passcode-smtp-config.yaml"
+	cfg, err := Load(&configPath)
+	if err != nil {
+		t.Error(err)
+	}
+	if err := cfg.Validate(); err != nil {
+		t.Error(err)
+	}
+
+	assert.Equal(t, cfg.Smtp.Port, cfg.Passcode.Smtp.Port)
+	assert.Equal(t, cfg.Smtp.Host, cfg.Passcode.Smtp.Host)
+	assert.Equal(t, cfg.Smtp.Password, cfg.Passcode.Smtp.Password)
+	assert.Equal(t, cfg.Smtp.User, cfg.Passcode.Smtp.User)
+}
+
+func TestRootSmtpPasscodeSmtpConflict(t *testing.T) {
+	configPath := "./root-passcode-smtp-config.yaml"
+	_, err := Load(&configPath)
+	assert.NoError(t, err)
+}
+
 func TestMinimalConfigValidates(t *testing.T) {
 	configPath := "./minimal-config.yaml"
 	cfg, err := Load(&configPath)
@@ -76,7 +103,7 @@ func TestRateLimiterConfig(t *testing.T) {
 }
 
 func TestEnvironmentVariables(t *testing.T) {
-	err := os.Setenv("PASSCODE_SMTP_HOST", "valueFromEnvVars")
+	err := os.Setenv("SMTP_HOST", "valueFromEnvVars")
 	require.NoError(t, err)
 
 	err = os.Setenv("WEBAUTHN_RELYING_PARTY_ORIGINS", "https://hanko.io,https://auth.hanko.io")
@@ -86,6 +113,6 @@ func TestEnvironmentVariables(t *testing.T) {
 	cfg, err := Load(&configPath)
 	require.NoError(t, err)
 
-	assert.Equal(t, "valueFromEnvVars", cfg.Passcode.Smtp.Host)
+	assert.Equal(t, "valueFromEnvVars", cfg.Smtp.Host)
 	assert.True(t, reflect.DeepEqual([]string{"https://hanko.io", "https://auth.hanko.io"}, cfg.Webauthn.RelyingParty.Origins))
 }
diff --git a/backend/config/minimal-config.yaml b/backend/config/minimal-config.yaml
index 12fd30b8..02ace097 100644
--- a/backend/config/minimal-config.yaml
+++ b/backend/config/minimal-config.yaml
@@ -1,5 +1,4 @@
-passcode:
-  smtp:
+smtp:
     host: smtp.example.com
     user: example
     password: example
diff --git a/backend/config/passcode-smtp-config.yaml b/backend/config/passcode-smtp-config.yaml
new file mode 100644
index 00000000..4484cca0
--- /dev/null
+++ b/backend/config/passcode-smtp-config.yaml
@@ -0,0 +1,18 @@
+database:
+  user: hanko
+  password: hanko
+  host: localhost
+  port: 5432
+  dialect: postgres
+passcode:
+  email:
+    from_address: no-reply@hanko.io
+  smtp:
+    host: smtp.example.com
+    user: example
+    password: example
+secrets:
+  keys:
+    - abcedfghijklmnopqrstuvwxyz
+service:
+  name: Hanko Authentication Service
diff --git a/backend/config/root-passcode-smtp-config.yaml b/backend/config/root-passcode-smtp-config.yaml
new file mode 100644
index 00000000..b566560a
--- /dev/null
+++ b/backend/config/root-passcode-smtp-config.yaml
@@ -0,0 +1,22 @@
+database:
+  user: hanko
+  password: hanko
+  host: localhost
+  port: 5432
+  dialect: postgres
+smtp:
+    host: smtp1.example.com
+    user: example1
+    password: example1
+passcode:
+  email:
+    from_address: no-reply@hanko.io
+  smtp:
+    host: smtp2.example.com
+    user: example2
+    password: example2
+secrets:
+  keys:
+    - abcedfghijklmnopqrstuvwxyz
+service:
+  name: Hanko Authentication Service
diff --git a/backend/handler/passcode_test.go b/backend/handler/passcode_test.go
index 523b9640..5c1a3bcc 100644
--- a/backend/handler/passcode_test.go
+++ b/backend/handler/passcode_test.go
@@ -38,8 +38,8 @@ func (s *passcodeSuite) TestPasscodeHandler_Init() {
 
 	cfg := func() *config.Config {
 		cfg := &test.DefaultConfig
-		cfg.Passcode.Smtp.Host = "localhost"
-		cfg.Passcode.Smtp.Port = s.EmailServer.SmtpPort
+		cfg.Smtp.Host = s.EmailServer.SmtpHost
+		cfg.Smtp.Port = s.EmailServer.SmtpPort
 		return cfg
 	}
 
diff --git a/backend/handler/public_router.go b/backend/handler/public_router.go
index 69146653..e922d944 100644
--- a/backend/handler/public_router.go
+++ b/backend/handler/public_router.go
@@ -70,7 +70,7 @@ func NewPublicRouter(cfg *config.Config, persister persistence.Persister, promet
 
 	sessionMiddleware := hankoMiddleware.Session(cfg, sessionManager)
 
-	mailer, err := mail.NewMailer(cfg.Passcode.Smtp)
+	mailer, err := mail.NewMailer(cfg.Smtp)
 	if err != nil {
 		panic(fmt.Errorf("failed to create mailer: %w", err))
 	}
diff --git a/backend/handler/webauthn_test.go b/backend/handler/webauthn_test.go
index f0a7757e..7790c486 100644
--- a/backend/handler/webauthn_test.go
+++ b/backend/handler/webauthn_test.go
@@ -343,10 +343,10 @@ var defaultConfig = config.Config{
 	Secrets: config.Secrets{
 		Keys: []string{"abcdefghijklmnop"},
 	},
-	Passcode: config.Passcode{Smtp: config.SMTP{
+	Smtp: config.SMTP{
 		Host: "localhost",
 		Port: "2500",
-	}},
+	},
 }
 
 type sessionManager struct {
diff --git a/backend/test/config.go b/backend/test/config.go
index 3eac60e9..6f0567ec 100644
--- a/backend/test/config.go
+++ b/backend/test/config.go
@@ -16,11 +16,11 @@ var DefaultConfig = config.Config{
 	Secrets: config.Secrets{
 		Keys: []string{"abcdefghijklmnop"},
 	},
+	Smtp: config.SMTP{
+		Host: "localhost",
+		Port: "2500",
+	},
 	Passcode: config.Passcode{
-		Smtp: config.SMTP{
-			Host: "localhost",
-			Port: "2500",
-		},
 		Email: config.Email{
 			FromAddress: "test@hanko.io",
 			FromName:    "Hanko Test",
diff --git a/backend/test/mailslurper.go b/backend/test/mailslurper.go
index 86616861..f4626d82 100644
--- a/backend/test/mailslurper.go
+++ b/backend/test/mailslurper.go
@@ -18,6 +18,7 @@ type TestMailslurper struct {
 	pool     *dockertest.Pool
 	resource *dockertest.Resource
 	httpUrl  string
+	SmtpHost string
 	SmtpPort string
 }
 
@@ -74,6 +75,7 @@ func StartMailslurper() (*TestMailslurper, error) {
 		pool:     pool,
 		resource: resource,
 		httpUrl:  dsn,
+		SmtpHost: "localhost",
 		SmtpPort: smtpPort,
 	}, nil
 }
diff --git a/deploy/docker-compose/config-disable-signup.yaml b/deploy/docker-compose/config-disable-signup.yaml
index dfb47fee..c413e707 100644
--- a/deploy/docker-compose/config-disable-signup.yaml
+++ b/deploy/docker-compose/config-disable-signup.yaml
@@ -4,12 +4,12 @@ database:
   host: postgresd
   port: 5432
   dialect: postgres
+smtp:
+    host: "mailslurper"
+    port: "2500"
 passcode:
   email:
     from_address: no-reply@hanko.io
-  smtp:
-    host: "mailslurper"
-    port: "2500"
 secrets:
   keys:
     - abcedfghijklmnopqrstuvwxyz
diff --git a/deploy/docker-compose/config-rate-limiting.yaml b/deploy/docker-compose/config-rate-limiting.yaml
index 8c2cbf1e..865543e4 100644
--- a/deploy/docker-compose/config-rate-limiting.yaml
+++ b/deploy/docker-compose/config-rate-limiting.yaml
@@ -4,12 +4,12 @@ database:
   host: postgresd
   port: 5432
   dialect: postgres
+smtp:
+    host: "mailslurper"
+    port: "2500"
 passcode:
   email:
     from_address: no-reply@hanko.io
-  smtp:
-    host: "mailslurper"
-    port: "2500"
 secrets:
   keys:
     - abcedfghijklmnopqrstuvwxyz
diff --git a/deploy/docker-compose/config.yaml b/deploy/docker-compose/config.yaml
index 8d09edf7..2890914b 100644
--- a/deploy/docker-compose/config.yaml
+++ b/deploy/docker-compose/config.yaml
@@ -4,12 +4,12 @@ database:
   host: postgresd
   port: 5432
   dialect: postgres
+smtp:
+    host: "mailslurper"
+    port: "2500"
 passcode:
   email:
     from_address: no-reply@hanko.io
-  smtp:
-    host: "mailslurper"
-    port: "2500"
 secrets:
   keys:
     - abcedfghijklmnopqrstuvwxyz
diff --git a/deploy/k8s/overlays/thirdparty-x-domain/config.yaml b/deploy/k8s/overlays/thirdparty-x-domain/config.yaml
index 877f4b46..1d305776 100644
--- a/deploy/k8s/overlays/thirdparty-x-domain/config.yaml
+++ b/deploy/k8s/overlays/thirdparty-x-domain/config.yaml
@@ -4,12 +4,12 @@ database:
   host: postgres
   port: 5432
   dialect: postgres
+smtp:
+    host: "mailhog"
+    port: "2500"
 passcode:
   email:
     from_address: no-reply@hanko.io
-  smtp:
-    host: "mailhog"
-    port: "2500"
 secrets:
   keys:
     - abcedfghijklmnopqrstuvwxyz
@@ -40,4 +40,4 @@ third_party:
     github:
       enabled: true
     apple:
-      enabled: true
\ No newline at end of file
+      enabled: true
diff --git a/e2e/.nvmrc b/e2e/.nvmrc
index dac255d2..1c680742 100644
--- a/e2e/.nvmrc
+++ b/e2e/.nvmrc
@@ -1 +1 @@
-v16.15.1
+v18.6.0