The password is needed to protect the secret PEN that’s in the P12 file, since the P12 file will be stored in an ordinary folder on your device. The password will be needed during Step 4, IMPORT P12 File. 
The P12 file is an IT standard format for a portable description of a certificate and its “key pair.”
Your Osmio ID Pair has now been created as a P12 file – a condensed, portable version of your Osmio ID Pair.  The P12 file is protected by the password you provided back in Step 2.    
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About the P12 file
This password is NOT involved in the everyday use of your Osmio ID Pair. It is only needed to import or view the P12 file.
Save the P12 File