OAuth2

What it is:

OAuth2 is an industry-standard authorization framework that allows applications to obtain limited access to user resources without exposing credentials. Unlike SAML, which exchanges authentication assertions, OAuth2 focuses on granting secure delegated access using access tokens. It underpins modern Identity and Access Management (IAM), Customer Identity and Access Management (CIAM), and API security, often combined with OIDC (OpenID Connect) for authentication.

Why it matters:

In today’s cloud-native and API-driven environments, OAuth2 is critical for enabling secure integration between applications, services, and devices. For regulated industries like banking and fintech, it supports strong access control, complies with standards such as PSD2 and Open Banking, and provides the foundation for password-less authentication with FIDO2 and Adaptive Security. OAuth2 also enables seamless, token-based authorization during IAM Modernization, Hybrid Identity, and Cloud Migration initiatives.

How it works:

• Authorization Grants: OAuth2 defines multiple grant types (Authorization Code, Client Credentials, Implicit, Resource Owner Password) to obtain access tokens depending on the scenario.

• Access Tokens: Tokens are issued by an Authorization Server (IdP) and presented to resource servers to gain access to APIs or protected resources.

• Scopes and Consent: Scopes limit what access is granted, while user consent ensures transparency and control over resource sharing.

• Integration with OIDC: When combined with OIDC, OAuth2 supports secure authentication and identity federation, enabling modern IAM Journeys and Zero-Downtime IAM architectures.