My multiyear experience in developing software solutions has convinced me that security can either contribute to the success or result in the failure of a product. Retail Software-as-a-Service (SaaS) products exist in ever-changing environments where sensitive client information, payment data, and inventory management are among the usual daily activities. This means that security in retail SaaS isn’t only a technical requirement but a backbone for client trust, compliance, and business continuity.
At MobiDev, we’ve created SaaS solutions for various industries. While main security practices, such as encryption, secure authentication, and access control, are universally applicable, the retail industry brings its own unique puzzles. From integrating third-party payment systems and ERP software to securing omnichannel user experiences, retail SaaS requires a security-first attitude from the very beginning of the product life cycle.
In this guide, I’ll explain the fundamental security considerations relevant to Retail SaaS platforms and provide practical recommendations for product and technical leaders modernizing legacy systems or crafting innovative retail SaaS solutions.
4 Key Pillars of Retail SaaS Security
Designing a retail SaaS solution is more than emergency fixes or reactive actions; it requires a proactive, holistic approach to security. With handling sensitive client data, real-time payments, and continuous integration with external systems, such applications must be architected with security as a priority. Here is what it means in practice, and which principles should be followed.
1. Encryption
Encryption is a basic requirement for the safety of sensitive data within retail SaaS platforms. Encryption ensures that even when data is accessed without authorization, it stays unreadable and protected.
There are two main layers of data: Data at Rest and Data in Transit.
Data at Rest
Data at Rest refers to inactive data stored on the disk. That’s database storage, cloud files storage, and backups. It has to be protected with encryption to prevent unauthorized access in case of physical access or system-level breaches. You need to encrypt stored data using robust encryption standards like AES-256.
Data in Transit
Data in Transit refers to data actively moving across networks. It should be secured using the latest secure protocols to protect data from interception. You need to secure data transfers using protocols like TLS 1.3.
2. Secure Authentication
Another aspect is connected with secure authentication. It blocks unauthorized access to sensitive data and allows you to ensure that system resources are accessed by only verified users, reducing the risk of data breaches and account takeovers. Secure authentication can be achieved by introducing strong password policies, adopting and using MFA, and following industry-standard protocols. Here is what to pay attention to.
- Passwords must not be weak. The password must contain at least 12 characters; the longer the password is the better. A mix of uppercase letters, lowercase letters, numbers, and symbols should be included. Do not allow users to utilize weak passwords. Store passwords hashed with modern hashing algorithms. For example, you might consider Bcrypt. With a good cost factor (10+), it is a very popular option, while an Argon2 is even better.
- Implement rate limiting and account lock mechanisms to defend against brute-force attacks.
- Be careful with password reset logic. Particular flaws in this logic may unlock security gaps and allow intruders to gain unauthorized access.
- Improve Authentication with Multi-Factor Authentication (MFA). For example, One Time Password (OTP), Time-based One-Time Password (TOTP), and Biometric (fingerprint, facial recognition) might work as an additional security layer to classic authentication procedures with username and password.
- Utilize industry-standard protocols, like OAuth 2.0, OpenID Connect. In case of token-based authentication, give your preference to PASETO instead of JWT, as that’s a more secure option.
Strong security authentication practices are necessary for retail SaaS solutions as they safeguard sensitive customer data and prevent unauthorized access to vital business processes.
3. Access Control
Access control ensures that users can only access the data and functionality appropriate to their role. Access control is an essential part of authorization.
Nowadays, authorization can be implemented in many different ways:
- Access control lists (ACL)
- Role-Based Access Control (RBAC)
- Attribute-Based Access Control (ABAC)
- Policy-Based Access Control (PBAC)
- Discretionary Access Control (DAC)
- Risk Adaptive-Based Access Control (RAdAC)
- Claim-Based Access Control (CBAC)
You should pick the method that will cover your security needs. Implementing granular access control mitigates the risk of attacks and helps maintain data integrity. Regularly audit permissions and access rights. The principle of Least Privilege (PoLP) is an effective practice to follow.
What’s the difference between Role-Based Access Control (RBAC) and Attribute-Based Access Control (ABAC)?
RBAC gives access based on roles, while ABAC utilizes attributes like time, location, and user type for more complex policies. Read this guide for more information How to Choose the Right Access Control Security Model: ACL vs RBAC vs ABAC.
4. Data Minimization
Data minimization is essential to lower the risk of data leaks. By collecting and storing only the data that is strictly necessary, you reduce the chances of sensitive information being exposed in a breach. It also simplifies compliance with data privacy regulations. Basically, you have to collect only essential user data and regularly review and purge unnecessary information.
What are the essential security practices when launching the next version of a SaaS product?
Focus on secure SDLC, API security, encryption, access controls, and embedding automated security tests in CI/CD pipelines.
The 10 Best Secure Development Practices for Retail SaaS Platforms
Security should be integrated into retail SaaS security architecture, and you can achieve it by implementing best security practices in software development. Developers can minimize security incidents by following industry standard security recommendations like OWASP, performing regular code/security reviews, and proactively detecting potential threats. Typical vulnerabilities, such as SQL injection, XSS, can be prevented before they reach production.
Here are the TOP 10 secure development recommendations for designing robust and secure retail SaaS platforms:
- Adopt secure coding standards like OWASP, SEI CERT guidelines to mitigate common vulnerabilities.
- Use security scanning tools. Automatically scan third-party libraries for known vulnerabilities. Such tools exist for most programming languages nowadays.
- Incorporate Static and Dynamic Analysis. Utilize various solutions for both Static Application Security Testing (SAST) and Dynamic Application Security Testing (DAST) to identify issues. Tools such as SonarQube, PHPStan, OWASP ZAP, and Burp Suite can help with that.
- Follow security guidelines specific to your programming languages and frameworks
- Apply the Principle of Least Privilege (PoLP). Restrict application and service permissions to only what is necessary.
- Secure APIs by Design. Use authentication, authorization, rate limiting, and input validation on all publicly accessible APIs.
- Automate Security Testing in CI/CD. Integrate security checks into your deployment pipelines for continuous validation.
- Maintain a Secure Software Development Life Cycle (SDLC). The process of integrating security practices into each phase of the software development life cycle. Adopt a security-first principle at every development phase from planning to deployment.
- Track vulnerabilities and apply patches/updates of discovered issues in time.
- Perform a regular security audit with security checklists.
Maintaining security in retail software development is a continuous process. That is why our company has prepared specific security checklists, with which project teams constantly monitor the implementation of all necessary security measures at each stage of product development. MobiDev regularly updates these checklists and relevant guidelines in line with software development security best practices. They are also important for app modernization and reducing tech debt.
How can a legacy SaaS platform improve its security without a complete rebuild?
It’s better to begin with an audit for vulnerabilities, implement HTTPS, encrypt sensitive data, add MFA, and be sure you’ve adopted access control. After that, gradually refactor the product utilizing secure development practices while maintaining operational continuity.
Best Practices for Retail SaaS Infrastructure Security
As retail SaaS products operate with sensitive data, payments, and business-critical operations, the integrity, availability, and confidentiality of the infrastructure are essential.
When it comes to secure cloud Infrastructure, work with cloud providers with a paramount reputation and take advantage of their security tools.
10 Key Cloud Infrastructure Recommendations for Securing Retail SaaS
- Root account usage and avoid daily usage of root accounts. Create sub-accounts and use them on a daily basis. Store credentials for the root account in a safe place.
- Adopt Identity and Access Management (IAM). Use IAM roles with least-privilege access. Require strong password complexity, regularly rotate credentials, and use Multi-factor authentication (MFA).
- Apply network segmentation. Use network segmentation (logically isolated virtual network, e.g., AWS VPC) to limit access and exposure of services and available data within the network.
- Firewall rules are important. It is necessary to catch on that there are no unnecessary open ports, which may open potential vulnerabilities and unauthorized access to the system. Open publicly available ports only when they are required for SaaS functionality. Additional technical services or ports can be protected by VPN or IP whitelist. Everything else should be closed.
- DDoS protection is non-negotiable. It is crucial to adopt DDoS protection by limiting the number of requests from one IP or one account. Or implement other rules for other, more complicated cases.
- Apply end-to-end encryption for data at rest and in transit using cloud-native key management systems.
- Enable cloud-native security monitoring tools (e.g., AWS GuardDuty, Azure Defender) for real-time threat detection. Use scanning for vulnerabilities where this functionality is available. For example, you might consider Docker images scanning when necessary.
- Automated secure deployments are essential. Use Infrastructure as Code (IaC) or GitOps approaches as best practices in infrastructure management, deployment, and security as well.
- Regular updates/patching should be a routine. Perform regular security updates to keep all OS, containers, and managed services up to date.
- Think of a Backup and Disaster Recovery strategy. Store encrypted backups and define a Disaster Recovery Plan.
Let’s take a detailed look at three main aspects of securing infrastructure for retail SaaS products.
1. Disaster Recovery Plan (DRP)
Develop and maintain a Disaster Recovery Plan. Don’t forget to test it! Developing a systematic and detailed incident response plan allows your business to recover from security incidents efficiently, in the shortest period. It minimizes damage, reduces downtimes, and ensures compliance with breach notification requirements. The plan should clearly describe actions required to recover from disaster, where a security breach has a place to be.
2. Monitoring and Logging
Proactive monitoring and logging are essential for detecting security events. Such information can provide real-time visibility of your environment. This is a possibility for the identification of threats. Implement continuous monitoring and real-time alerts for suspicious activities.
3. Regular Infrastructure Security Audits
Regular infrastructure security audits are vitally important for preserving a secure and reliable SaaS environment. Such audits can pinpoint vulnerabilities, follow regulatory standards (such as HIPAA, GDPR, PCI-DSS), strengthen the Disaster Recovery Plan, and put a stop to data breaches. Actually it means regularly improving the security aspects of your SaaS.
User Security Awareness in Retail SaaS Solutions
Human mistakes are a major factor in many breaches. Employees are often the first target of cyber threats. You may have strong security with adopted best security practices, but just one small mistake of one employee can make a serious security breach with serious consequences.
Regular trainings help your staff identify and avoid phishing attempts, usage of weak password policies, prevent usage of suspicious websites and applications, and lower other common security risks. Building a Security-First Culture makes your employees active participants in a strong SaaS platform security. You need to encourage a security-first mindset across all departments in your organization.
Customers of SaaS platforms should also be informed on how to keep their accounts secure. You should provide clear security guidelines and support materials and implement functionality which will proactively recommend to improve security. Recommendations like usage of strong passwords, password rotation, and enabling multifactor authentication should be included in the guidelines and policies for customers. All these actions can greatly lower human related vulnerabilities in SaaS platforms.
Build a Secure Retail SaaS Product That Scales With Your Business
At MobiDev, we prioritize retail SaaS security at every stage of the development. All the phases, from initial requirements gathering to final deployment, are infused with security measures to mitigate potential risks.
Using our experience from more than a decade of providing retail software development services, you can effectively plan and create custom retail SaaS platforms that support everything from POS solutions to inventory and customer loyalty tools.
Whether you’re thinking of a new product or modernizing legacy systems, you’ll receive end-to-end guidance. From kicking off the business analysis stage and designing UX/UI, to cloud infrastructure and AI-driven analytics, we’ll take care of these issues. If you need application modernization services, we can also help.
If you don’t know which approach to choose and where to start, our technology consulting services are designed to help you pick the tailored tools, draft a scalable architecture, and combine your software strategy for long-term business su