What Is SMS OTP?

Published 2022-11-08
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SMS OTP service or OTP code is a very common term for people who regularly use online services or conduct online transactions.

So, what is SMS OTP? Why do businesses need to deploy this service? StringeeX will help you answer these questions through the article below.

What Is SMS OTP?

SMS OTP, which stands for Short Message Service One Time Password, is a message containing an authentication code sent to a customer's phone. SMS OTP contains a string of numbers or a combination of numbers and characters. Unlike normal passwords, OTP codes are generated randomly from the system.

The duration of the OTP password is usually very short, maybe after only 30 seconds, 1 minute, or a few minutes, it will be useless and be replaced with a new code.

In the ideal scenario, a service or app emails a one-time code to a user's or client's phone and instructs them to enter the code on the login page within a predetermined window of time. The system will allow the user access to the service or perform a password reset if the one-time code they supplied matches the one they were given by the system. 

Given that consumers no longer need to install any apps or own any other hardware in addition to their phones, SMS OTP has taken the place of other authentication methods as the de-facto industry standard.

Bonus: What is OTP?

One Time Password, also known as an OTP, is a security code that should only be used once in order to ensure high security and reduce the possibility of unauthorized login attempts. It is a series of automatically generated letters or numbers that are transmitted to the user's phone by SMS, voice message, or push message.

When a transaction requires extra protection or a different way to validate a customer's identity, OTPs are employed. The OTP is automatically created as a number or string of characters that is somewhat random. OTPs are often time-limited, valid for a short period of time, and impossible to foresee in advance.

Benefits Of SMS OTP Verification

3 benefits of SMS OTP Verification

User Data Verification

They can also be used on lead qualification processes to evaluate the accuracy and utility of the contact information in your database or to verify its legality.

Higher Security  

Before providing a temporary code to perform a second identity verification, multi-factor authentication protocols ask the user for credentials such as their email address and password.

Fraud Prevention  

Having numerous email addresses makes it possible to stop the same person from utilizing a deal. To connect emails to phone numbers and stop fraud, you can utilize temporary codes in coupon promotions.

Friction Reduction  

Password-free logins can be provided using SMS OTP verification, freeing users from having to remember their passwords. After confirming the registration, the system will automatically send a code to enable access.

>>> Read more: Voice OTP & It Advantages Over SMS OTP

Usage Of SMS OTP For Business 

New Signups  

Businesses sometimes receive phony sign-ups or wrong mobile numbers through their websites. Employing OTPs upon registration creates a sizable database of unreachable clients and clients' businesses, wasting time and resources. Verifying the user's mobile number can guarantee its usage and accuracy.

Account Activation  

OTPs can also be used to prevent password reset fraud and account reactivation. After a long period of inactivity, thieves occasionally try to fraudulently reactivate inactive accounts. 

To get inactive users to reactivate, businesses also send them marketing messages. But authentication is essential, and OTP verification is a practical approach. 

Password-Free Login

Customers find it challenging to remember passwords for several websites and services. Login without a password is possible using SMS verification. Customers that don't want a password frequently log in using OTP.

Password Reset  

Logging into a platform requires a password, which is essential to preventing unwanted access and guaranteeing that only the account owner may modify the password. SMS validates user identity for commercial use. When users ask for a password reset, they can first receive an OTP to verify who they are.

Authorization 

Beyond financial transactions, access security is crucial when using protected websites or mobile applications from an unknown device, location, or IP address. Many online banking services demand OTPs because SMS verification is a rapid and secure way to confirm the user.

How To Register SMS OTP Service With StringeeX?

Nowadays, businesses prefer using SMS OTP to send verification codes as this service can deliver messages to registered customers immediately. API can connect a business system (ERP, CRM, HRM, etc…) and a SMS program to send OTP messages to users.

StringeeX is currently providing the service of sending SMS OTP via API connection (SMS API), the service supporting the registration procedure of SMS Brand name and also Voice OTP, Voice Brand name if businesses have demand.

SMS OTP is sent in combination with SMS Brandname - a message with the brand name and business name in the sender section. A brand name helps OTP messages increase the identity value so that the recipient can feel secure when using the code.

This form is suitable for organizations and businesses that have an IT team and have built an OTP transaction processing system. System integration time is fast and extremely simple.

If you are interested in the SMS Brand name and SMS OTP services, please register directly HERE.

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