Nowadays, most customers purchase online from eCommerce websites like Amazon and Flipkart due to the sheer number of options to choose from. But while you shop online, you usually make the payment online by using a debit or credit card. Online shopping offers convenience, variety, and competitive pricing, making it a preferred choice for many consumers.
However, for a smooth process, in the end, you are asked to type in OTP or a one-time password received via SMS for the transaction to happen. To understand how and why you need SMS OTP, let’s first understand what a one-time pin is.
SMS OTP Explained
With the rise in online financial transactions, the chances of fraud and theft are not too far. In the world of cyberspace, many fraudulent imposters are waiting to pounce on your hard-earned money. For that purpose, especially, banks have made two-factor authentication mandatory when doing any online transaction. This additional layer of security helps ensure that only the authorized user can complete the transaction, thereby reducing the risk of fraud.
This is an additional layer of security besides your password. Whenever you do an online purchase, to verify your credentials, a one-time pin is sent to your inbox. It’s after typing this code that you can proceed with a transaction. The OTP is a unique code generated for a single transaction and is valid for a short period, adding an extra level of security.
The OTP, which is also called a one-time authentication code, saves you from many attacks you are prone to online. This temporary code ensures that even if your password is compromised, the attacker cannot complete the transaction without access to the OTP.
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Some Features of SMS OTP
SMS OTP offers several features that make it a reliable and secure method for authenticating online transactions:
- OTPs are not vulnerable to replay attacks: Each OTP is unique and can only be used once, making it impossible for attackers to reuse captured OTPs.
- Phishing, which is a cause of concern for those in cyberspace, can be averted: Even if attackers obtain your password, they cannot complete the transaction without the OTP.
- A safe and reliable way to secure online transactions: SMS OTP provides a simple and effective method for verifying user identity.
- Recorded OTPs by a third party cannot be used due to expiry time: OTPs have a short validity period, usually a few minutes, after which they expire.
- The system ensures the session is not intercepted: OTPs are sent over secure channels, reducing the risk of interception.
- Short-time usage does not allow attackers to use OTPs sent on your mobile phones: The limited validity period of OTPs ensures that attackers have minimal time to exploit them.
Even if your cards are stolen by someone, they cannot complete an online transaction only because the authentication code is sent to your registered mobile number, making their attempt futile. This added layer of security ensures that only the rightful owner can authorize transactions, providing peace of mind for users.
Types of OTP
There are different types of OTP methods used to enhance security:
SMS OTP: One of the most common forms of OTP used widely. Here the code is sent in the form of a text message to the user. After a successful login, a code is sent for authentication to complete the process. This method is convenient and accessible for most users as it utilizes the existing mobile network infrastructure.
Voice SMS: Here the OTP is sent by calling the registered mobile number. This happens automatically, and the user just has to follow the instructions. This can be kept as an alternative to SMS OTP. Voice OTPs are particularly useful in areas with poor text messaging coverage or for users who prefer voice communication.
Where Do We Need & Use SMS OTP?
According to a report published in 2017, around US$ 724,000 worth of credit card fraud was reported. This shows how vulnerable online transactions can be. Below are the areas where we need to have a two-factor authentication process:
- Banking and Fintech companies: To ensure the hard-earned money or savings are secure while doing an online transaction, both these sectors must use this layer of authentication to avoid any fraud. SMS OTP provides an additional security layer that helps prevent unauthorized access to sensitive financial information.
- Government: To ensure the beneficiary is the intended one, different departments can use the One-time password option. This ensures that only authorized individuals can access government services and benefits.
- Online stores: While the customer visits the online store, it must be made mandatory for them to ensure they are the actual user while purchasing online. For example, when a special item or one with high value is to be shipped, it is to be read out to the delivery person at the time of receiving a parcel. This verification step helps prevent fraud and ensures the security of online transactions.
OTP SMS Service From SMSala
Now, if you want to make the journey of your users safe and secure, then smsala.com is the service you can rely on. By using our service, you can send out an OTP to verify the identity of a user. SMSala provides a robust and reliable OTP SMS service that ensures secure and timely delivery of authentication codes.
We give you the option to test our service for free to make the benefits of our service known to you. For trial purposes, we provide you with 20 free messages. Besides SMS OTP, you can also send voice OTP for the convenience of clients. Voice OTPs offer an alternative method of delivering authentication codes, ensuring that users receive them even if there are issues with text messaging.
Customers can also use the phone verification API provided by SMSala LLC. Our API allows perfect integration with your existing platform. Here you can check the status of the message and also the response by the receiver at the same time. The API provides detailed reporting and analytics, helping you monitor and manage your OTP delivery and usage effectively.
Integrating SMS OTP with your business processes can significantly enhance security, improve customer trust, and reduce the risk of fraud. Whether you’re in banking, e-commerce, government, or any other industry, SMS OTP can provide a reliable and secure method for authenticating transactions and verifying user identities.
Interested in our bulk SMS service? Then, what are you waiting for? Go ahead with our free trial. If you have any queries or doubts to clear, start chatting with us. Alternatively, you can get in touch with us by calling +1-302-492-9037 for further information. Our team is ready to assist you in setting up and optimizing your SMS OTP service to ensure the highest level of security and customer satisfaction.
