diff --git a/packages/integration-react/src/api/ScmAuth.ts b/packages/integration-react/src/api/ScmAuth.ts
index a22b15e400..05bb360d90 100644
--- a/packages/integration-react/src/api/ScmAuth.ts
+++ b/packages/integration-react/src/api/ScmAuth.ts
@@ -49,11 +49,11 @@ class ScmAuthMux implements ScmAuthApi {
   async getCredentials(
     options: ScmAuthTokenOptions,
   ): Promise<ScmAuthTokenResponse> {
-    const url = new URL(options.url);
-    const provider = this.#providers.find(p => p.isUrlSupported(url));
+    const { host } = options;
+    const provider = this.#providers.find(p => p.isHostSupported(host));
     if (!provider) {
       throw new Error(
-        `No auth provider available for '${options.url}', see https://backstage.io/link?scm-auth`,
+        `No auth provider available for '${host}', see https://backstage.io/link?scm-auth`,
       );
     }
 
@@ -261,10 +261,10 @@ export class ScmAuth implements ScmAuthApi {
   }
 
   /**
-   * Checks whether the implementation is able to provide authentication for the given URL.
+   * Checks whether the implementation is able to provide authentication for the given host.
    */
-  isUrlSupported(url: URL): boolean {
-    return url.host === this.#host;
+  isHostSupported(host: string): boolean {
+    return host === this.#host;
   }
 
   private getAdditionalScopesForProvider(
@@ -283,7 +283,7 @@ export class ScmAuth implements ScmAuthApi {
   async getCredentials(
     options: ScmAuthTokenOptions,
   ): Promise<ScmAuthTokenResponse> {
-    const { url, additionalScope, ...restOptions } = options;
+    const { host, additionalScope, ...restOptions } = options;
 
     const scopes = this.#scopeMapping.default.slice();
     if (additionalScope?.repoWrite) {
diff --git a/packages/integration-react/src/api/ScmAuthApi.ts b/packages/integration-react/src/api/ScmAuthApi.ts
index be65842bc1..eafc630128 100644
--- a/packages/integration-react/src/api/ScmAuthApi.ts
+++ b/packages/integration-react/src/api/ScmAuthApi.ts
@@ -27,11 +27,11 @@ import {
  */
 export interface ScmAuthTokenOptions extends AuthRequestOptions {
   /**
-   * The URL of the SCM resource to be accessed.
+   * The host of the SCM resource to be accessed.
    *
-   * @example https://github.com/backstage/backstage
+   * @example github.com
    */
-  url: string;
+  host: string;
 
   /**
    * Whether to request additional access scope.
diff --git a/plugins/scaffolder/src/components/fields/RepoUrlPicker/RepoUrlPicker.tsx b/plugins/scaffolder/src/components/fields/RepoUrlPicker/RepoUrlPicker.tsx
index b8fe7b9420..ad01ee0fd7 100644
--- a/plugins/scaffolder/src/components/fields/RepoUrlPicker/RepoUrlPicker.tsx
+++ b/plugins/scaffolder/src/components/fields/RepoUrlPicker/RepoUrlPicker.tsx
@@ -124,8 +124,7 @@ export const RepoUrlPicker = (props: RepoUrlPickerProps) => {
     async () => {
       const { requestUserCredentials } = uiSchema?.['ui:options'] ?? {};
 
-      const workspace = state.owner ? state.owner : state.project;
-      if (!requestUserCredentials) {
+      if (!requestUserCredentials || !state.host) {
         return;
       }
 
@@ -134,19 +133,11 @@ export const RepoUrlPicker = (props: RepoUrlPickerProps) => {
         return;
       }
 
-      // previously, we were encodeURI for state.host, workspace and state.repoName separately.
-      // That created an issue where GitLab workspace can be nested like groupA/subgroupB
-      // when we encodeURi separately and then join, the URL will be malformed and
-      // resulting in 400 request error from GitLab API
-      const [encodedHost, encodedRepoName] = [state.host, state.repoName].map(
-        encodeURIComponent,
-      );
-
       // user has requested that we use the users credentials
       // so lets grab them using the scmAuthApi and pass through
       // any additional scopes from the ui:options
       const { token } = await scmAuthApi.getCredentials({
-        url: `https://${encodedHost}/${workspace}/${encodedRepoName}`,
+        host: state.host,
         additionalScope: {
           repoWrite: true,
           customScopes: requestUserCredentials.additionalScopes,