Microsoft Dynamics CRM uses active directory, passport, and claims-based authentication based on the deployment type.

Active directory authentication for PowerExchange for Microsoft Dynamics CRM uses Windows authentication. Before you add the users to Microsoft Dynamics, add the users to the Windows Active Directory.

Claims-based authentication for PowerExchange for Microsoft Dynamics CRM authenticates a user based on a set of claims about the identity of the user such as the user name and password contained in a trusted token. Claims-based authentication requires the availability of a security token service (STS) running on a server. PowerExchange for Microsoft Dynamics CRM uses user name mixed endpoint for the authentication that is configured on the STS.

Passport authentication for PowerExchange for Microsoft Dynamics is based on client secret verification by enabling the OAuth authentication.