How SMS OTP Verification Works And Its Importance?

by Anvika aryaJanuary 4, 2023
How SMS OTP Verification Works And Its Importance?

As part of the SMS OTP verification procedure, businesses sending out SMS messages send an OTP to the user's phone. The user inputs the OTP that the business has provided them on the authentication device.

The OTP has a time restriction on how long it may be used. OTPs issued through text message offer a defense against phishing and other nefarious attempts. SMS OTP should be used in addition to other security measures like passwords.

In practically every OTP SMS service in Kolkata, verification is a crucial step. This blog explains how it works and how it helps brands. So thoroughly research it to learn more.

Let's define the OTP SMS service provider before we get started. SMS verification may be used by banks, websites, and social networking platforms to confirm a customer's identification. When you have finished inputting your login information and password, they send a verification number to your phone number.

Table Of Contents

What is SMS OTP?

A text message with a special alphanumeric or numeric code is delivered to a mobile phone as part of the secure two-factor authentication process known as SMS OTP (one-time password) (MSISDN).

The receiver then logs into a service, website, or app using this code or password as an extra layer of protection.

When entering into banks or other financial services accounts, SMS OTP is increasingly utilized. New laws mandating all banks to use Strong Customer Authentication (SCA) while signing in or completing a transaction went into effect in the UK and EU in March 2022.

Non-financial businesses are utilizing SMS OTP more often as a security measure.

In the world, 93% of businesses utilize SMS OTP for some kind of verification.

SMS OTP is used by all of the UK businesses that were surveyed.

Why is SMS used to authenticate using a one-time password?

SMS is still the most popular alternative for most businesses, despite the fact that it has a number of security flaws and is not the greatest method for providing OTPs to consumers.

What makes this the case?

The only form of communication that is available to anybody with a phone is SMS.

There isn't any specific programme to download, and there are no incompatibility difficulties. It is clear, trustworthy, and universally comprehensible.

Additionally, the SMS OTP setup is quite simple. You might use the service straight now if you pair it with an SMS API.

How is SMS OTP configured?

Several businesses provide SMS OTP services.

The important decision you must make is whether you want a complete off-the-shelf solution or if you want to create your system from the bottom up, including coding unique programmes.

Off-the-shelf solutions are fast and simple to use, but they often cost more and provide less flexibility.

You will undoubtedly have more control if you build your own SMS OTP system, but keep in mind that building and maintenance expenses will need to be budgeted for.

Motives Behind SMS OTP Verification Sending

OTPs and temporary codes are two of the most often utilized techniques for user identity verification. The reasons for sending an SMS OTP verification are listed below.

1. It lowers friction.

To avoid having to remember passwords, password-free logins may also be made accessible through SMS OTP verification. Users automatically obtain an access code from the system.

2. Data verification for users

In order to determine if the contact information in your database is reliable and useful, you may also modify them for lead-qualifying processes.

3. Preventing fraud

The same person cannot use multiple email addresses or SMS OTPs to redeem discounts. These transient codes may also be used to link emails and phone numbers in discount promotions.

4. Heightened security

The user is required to provide credentials, including their email address and passwords, as part of the multi-factor authentication process. Something occurs just before providing them with a temporary code to finish the second identity verification. Important explanations for sending an OTP SMS verification include the following. Way To SMS is a kind of program or service that enables Two-Way text messaging or text message sending and receiving.

How Does SMS OTP Verification Work?

  • Give a company your phone number when you join up.
  • You get an SMS code after inputting your login details.
  • To log into the app or website, enter the code.

Benefits of SMS OTP Verification:

1. Simple to Use

Users won't be able to handle difficult authentications. In this situation, SMS authentication offers a simple and safe remedy.

2. Affordable

The cheap cost of delivering SMS messages to clients may be quite advantageous for a company with a large customer base.

3. An Additional Layer of Defense

These days, user accounts are protected by two-factor authentication. Simple SMS authentication offers an additional level of security. It is advisable to avoid extra security checks.


As an extra security step, an SMS OTP is used. A mobile phone number receives a numerical code as part of a secure authorisation mechanism. Online sign-in is used to confirm the user's identification. By restricting the reuse of a username/password combination, one-time passwords guard against identity theft. By employing SMS OTP verification, you can prevent identity theft and email address hacking. To get an OTP verification solution for your company, get in touch with an OTP SMS Service Provider.

Also Read: 8 Popular Online Gifts for the Man in your Life

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