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SSO vs Password Manager

SSO vs Password Manager

4 August 2025

Single Sign-On (SSO) and a password manager are two well-known and widely used security tools. Although both solutions simplify and secure logging in to applications and services, there are major differences between SSO and password managers. In this article, we explore these differences and highlight the benefits of both options.

What is Single Sign On (SSO)?

What Is Single Sign-On?

From a digital security perspective, it is important to use a unique and strong password for every application and service. In practice, however, this means users must authenticate across a range of services with different credentials. Repeated logins take time and reduce productivity, and users may struggle to remember the strong passwords they set.

SSO solves this and provides significant convenience. Users authenticate only once, after which they receive access to all applications and services they need. This raises your organization’s digital security to a higher level.

Want to learn more about SSO? In our knowledge base we take a deeper dive into the world of SSO!

What is a password manager?

What Is a Password Manager?

Another security tool that supports and simplifies the use of strong, unique passwords is a password manager. This software is specifically designed to securely store and manage passwords. You can compare a password manager to a digital vault where you keep your login credentials. A password manager can also generate passwords for users, which promotes the use of strong and unique passwords.

Thanks to integration in, among other things, the web browser, users can have a password manager auto-fill passwords. This saves time and increases convenience. You can also install a password manager on multiple devices, where the software automatically synchronizes credentials. This ensures that users always have their credentials, regardless of the device they use.

Want to learn more about password managers? Read more in our knowledge base!

Difference between Single Sign On and a password manager

Difference Between Single Sign-On and a Password Manager

Although SSO and a password manager both simplify and secure logging in to applications and services, there are major differences. We list the most important differences:

Centralize or Simplify Logins

With SSO, users sign in to an SSO dashboard with a single set of credentials. This dashboard then provides access to all applications and services for which they are authorized. A password manager, by contrast, stores all user credentials in a digital vault and auto-fills them when needed. When using a password manager, users still sign in to individual applications, but they no longer need to remember or enter their credentials themselves.

 

Encourage Strong Passwords or Offload the Authentication Process

A password manager encourages the use of strong and unique passwords by generating them for users. They also do not have to remember passwords themselves, which enables the use of highly complex passwords. SSO goes a step further and fully offloads the authentication process. Users no longer need to set a password for each application and service, and they sign in only to the SSO solution. Users also need to remember only one set of credentials.

Difference between Single Sign On and a password manager

Manage Access Through the SSO Environment or Through Individual Applications and Services

Another important difference is the control you have as an administrator over user access to applications and services. With SSO, administrators are in control and can manage access to a specific application or service in a simple and granular way. If an employee leaves or moves to a different role, you can easily adjust access through the SSO environment. With HelloID Provisioning, you automate the creation of the right accounts and the assignment of the right permissions to employees. SSO then sits over all individual accounts and simplifies authentication. If you use a password manager, you must manage access through the individual applications and services your organization uses, which can be time-consuming and error-prone.

Streamlined Experience or Flexibility

To log in to an application through SSO, the application must be integrated into the SSO environment. This is only possible if the vendor provides the required support. If not, custom work may be required. A password manager offers more flexibility in this area; any username and password can be added to the security tool without requiring configuration.

More Information

Want to learn more about authentication for applications and services? In our knowledge base we take a deeper dive into this topic. You can also read more here about, among other things, authorization, credentials, digital identities and identification.