What is OTP SMS?
An OTP (one-time-password) SMS is a secure authorization method that is used by merchants for user safety. Typically an SMS OTP is a numeric or alphanumeric password sent to a user’s phone, which is an added layer of security used to verify a user’s identity when logging in online or confirming an action. OTP verification helps merchants by reassuring their customers of their online security measures, thus increasing brand reliability.
Why using OTP SMS?
With increasing cyber-crime and incidents of user data theft, it has become crucial and necessary for companies to implement powerful data security mechanisms. Therefore, many companies nowadays have implemented the OTP SMS authorization method as a way to protect security. For example, Alibaba and Tencent, have installed two-step authentication on their websites to protect their users against unauthorized logins to their accounts, and the OTP SMS technology has made this very easy.
Typical steps to use OTP SMS:
A user logs in or accesses a service on a merchant that requires some kind of identification.
A merchant sends an SMS with an OTP code to the user.
The user types in the recently received code in the merchant’s application.
The merchant receives the user’s telephone number in the response from MNO.