For industries like banking and e-commerce, users’ privacy is extremely critical. Since we talk about the personal info use and financial transactions, brands take extra precautions to increase security and prevent fraudulence activities. OTP (One Time Password) is one of the most common methods brands use to decrease the risk level.
Ensuring the Security at the Last Step
OTP is the abbreviation for One Time Password. It is the one session or transaction long password only valid for being used once. Imagine logging in to your online banking account, the bank requests you to enter the password sent instantly via an SMS. After you enter the correct personal info and one-time password, you log in successfully. Thus, an extra layer of security minimizes the risk of intruding.
Along with security reasons, brands use OTPs for marketing aims as well. It is also a practical way of sending hyper-personalized messages to users or subscribers for instant campaigns.
Due to precise timing delivery needs, SMS is the most common format brands use for OTPs. It is also the best fit for today’s mobile-first user profile all around the world. Since we carry our mobile phones everywhere, the verification is possible wherever we try to enter an online system like banking or similar.
Benefits of OTPs
OTPs provide efficiency for quick verification needs:
1) They add a critical security layer ensuring the user is valid for the next action.
2) Brands can use OTPs for delivering hyper-personalized offers.
3) Even though SMS is the most common method, brands can send OTPs via different digital channels. They can use the channels their users prefer the most. (E.g. Voice & Push Notifications)
4) Unlike static passwords, reply attacks are not applicable for intruding. There is no second-time use for OTPs, so it is useless to try the same password to conduct a transition.
5) Even if a user uses the same password for different systems, OTP avoids invalid entry in critical systems like online banking. Let us suppose an intruder occupies the password a user uses for social media entry and online banking. Since the bank uses OTPs for checking validation in the last step, the intruder will not be able to pass the final phase.
How to Implement OTPs?
Since OTPs require a high volume of message transition and delivery precision, it is better for brands to implement it via a trustable service provider. They should investigate the recognition (Did the company serve clients successfully in industries like banking & finance before?) and the performance (Delivery volume, timing accuracy). Since the OTP is an instant delivery medium, brands cannot afford the latency that will lead to customer dissatisfaction.
With our expertise and experience in delivering services like OTP in the banking and finance sectors, we are ready to help you. Feel free to contact us on how you can ensure perfect delivery performances.