In B2B SaaS applications, authentication serves a single fundamental purpose: verifying user identity with certainty. However, authentication solutions need to balance two critical factors.
This balancing act becomes particularly crucial in B2B SaaS environments where complex permission structures, various user roles, and strict compliance requirements further complicate the equation. The most successful authentication implementations deliver enterprise-grade security without sacrificing the seamless experience users expect.
Choosing the right authentication method is essential for SaaS applications because it impacts both security and the user experience.
In this section, we'll explore several SaaS authentication methods, including:
Let’s take a look at how each auth method fares when it comes to security and user experience.
This traditional method uses a combination of email addresses or usernames and passwords to verify user identities. While it’s the easiest to implement on this list, it's crucial to enhance security by requiring strong passwords, hashing passwords before storage, and implementing multifactor authentication (MFA).
Reasons passwords remain popular:
Vulnerabilities:
Example:
A user creates an account in your project management SaaS application by providing their email address and password. Your application stores the password securely after hashing it. When the user logs in, your application verifies the entered password against the stored hash.
Best practices
Best for: Smaller organizations, legacy applications, or internal SaaS apps with limited risk exposure.
Social authentication allows users to sign in to your SaaS application using their existing accounts from popular platforms like Google, Facebook, LinkedIn, GitHub, or Twitter.
This method leverages OAuth 2.0, a widely adopted protocol for secure authorization. Social authentication securely delegates authentication to trusted providers without direct credential handling.
How social authentication works:
Benefit: Social authentication leverages the existing security practices of established platforms. This reduces password-related vulnerabilities like phishing or password reuse.
While traditionally associated with B2C, social login is gaining traction in B2B, particularly for platforms where professional identity is relevant.
The choice of which social login to offer should align with the B2B SaaS's function. For example, "Sign in with LinkedIn" makes sense for a corporate event management tool. A devtool would benefit with a GitHub social login.
Enterprise SSO enables users to access multiple applications with a single set of credentials. It streamlines the login process, improves user experience, and enhances security by reducing the number of passwords users need to manage.
If you’re a B2B SaaS company looking to get enterprise customers, the enterprise will want your app to support login through their identity provider (IdP like Okta). To do this, you need to implement SSO in your app.
In a B2B SaaS context, Enterprise SSO enables organizations to integrate their IdPs with the SaaS application, streamlining access for employees while maintaining security and compliance.
Here’s how it works:
SSO typically follows SAML (Security Assertion Markup Language) or OIDC (OpenID Connect) protocols. The main components in an SSO setup include:
The typical authentication flow usually goes like this:
Best for: B2B SaaS apps that are targeting enterprises. Enterprises frequently require SSO for compliance reasons, improved security posture (fewer passwords to manage), and a better user experience for employees who need to access numerous applications.
This approach eliminates the need for passwords altogether, enhancing both security and user experience. Let’s take a look at common passwordless authentication techniques.
Magic links
This method sends unique, time-sensitive login links to the user's email address, allowing passwordless authentication. Magic links are convenient for users as they don’t have to manually key in an OTP.
Best for: Applications with infrequent logins.
Scenario: A user onboarding/training SaaS app sends magic links for occasional users who don't log in frequently.
OTPs
OTPs are passwords that are valid for only one login session or transaction. They can be generated and delivered through various means such as texts or email.
OTPs are temporary codes generated using standards like TOTP (Time-based) or HOTP (event-based). They are typically valid for short durations (30–60 seconds).
Best for: Securing transactions, user onboarding
Example: A user initiates a login or transaction. The system generates a unique OTP and sends it to the user's registered number via text. The user enters the OTP to complete the authentication process.
Passkeys
They are a phishing resistant auth method based on public key cryptography. They are part of the FIDO2 (Fast Identity Online) standard and are supported by companies like Apple, Google, and Microsoft.
When signing up for your SaaS app, a public-private key pair is generated on the user’s device. The public key is stored on the server, while the private key stays securely on the user’s device. When logging in, the service (Your SaaS app) sends a challenge, which the user’s device signs using the private key.
Best for: High-security areas, such as financial services, healthcare, and enterprise-critical applications.
Example: A fintech SaaS platform enables secure logins with passkeys, significantly reducing phishing and credential theft risks.
Multi-factor Authentication (MFA)
Multi-Factor Authentication (MFA) strengthens SaaS authentication by requiring multiple forms of verification instead of relying on just a password. MFA significantly enhances security, as an attacker who has one factor (like a compromised password) cannot gain access without the additional factor(s).
MFA typically combines two or more of the following factors:
For authentication in SaaS applications, a good MFA solution uses a combination of factors that complement each other, balancing security with user convenience.
MFA substantially improves security, particularly against compromised passwords, phishing, or credential theft.
However, each added authentication factor slightly increases user friction. Avoid overly complex combinations unless high-security stakes justify it.
When selecting an authentication solution for your SaaS application, consider the following:
Several tools are built for authentication in general, but if you’re a B2B SaaS, you should consider one that is purpose-built for SaaS complexity and environments.
Scalekit is designed specifically for B2B SaaS applications with solutions like SSO, SCIM provisioning, and social logins. It focuses on multi-tenancy and organization-first workflows to simplify enterprise onboarding. It offers a scalable architecture that aligns with enterprise growth needs.
Key features:
A comprehensive identity management platform offering a wide range of authentication and authorization services for B2C and B2B applications. A customizable solution for securing applications.
Key features:
WorkOS provides a suite of features that lets SaaS team get enterprise-ready, including SSO and directory sync, to help applications integrate easily with enterprise systems.
Key features:
A modern, no-code/low-code authentication platform designed for mid-market and enterprise business to simplify all-round authentication and user management. It offers pre-built UI components and workflows for quick and easy implementation.
Key features:
Clerk is an authentication platform that offers developers pre-built tools for login, signup, and profile management. It features ready-to-use UI components, APIs, and support for flows like SSO, MFA, and Social Logins, along with SDKs, database integrations, and customization options.
Key features:
Frontegg is an authentication and user management platform tailored for B2B SaaS applications. It supports a multi-tenant architecture with organization-level settings and features like fine-grained authorization, API token management, and SSO via SAML and OIDC. The platform covers the entire user journey, from signup to subscription enforcement.
Key features:
Focuses on providing modern, passwordless authentication solutions with an emphasis on security and user experience. It offers a flexible API for integrating various passwordless methods into applications.
Key features:
Choosing the right authentication solution is a critical decision for any SaaS business.
The ideal solution should strike a balance between strong security, scalability, user experience, and ease of integration. Explore third-party authentication platforms to accelerate your time-to-market without taking time away from your engineering team.
A well-implemented authentication system is not just a security feature; it's a strategic lever that builds trust, enhances user satisfaction, and drives business growth.