In this era of technology, almost everybody has a mobile phone and deals with daily authentication in many types of transactions. SMS OTP authentication is one of the security measures used to protect your transaction or account.
This system works by sending one-time password SMS to the user's mobile phone number to ensure that you are the one who makes the transaction. That way, the user can avoid any false transaction using their ID that can harm them.
What is SMS OTP?
SMS OTP stands for Short Message Service One-Time Password. It is a security feature that adds an additional layer of authentication to online transactions, account logins, and other sensitive activities.
This system is widely used by banks, e-commerce websites, and other online services to protect users from unauthorized access and fraudulent activities.
The type of SMS OTP can be an alphanumeric or numeric code that is unique. It can only be used once and with a certain amount of time limited by the provider. This is to ensure security.
Mostly the form of the password is six digits, and this is often used by banks or any official institutions. But for more simple transactions, a four digit password can have the same authentication.
How SMS OTP Authentication Works
When using SMS OTP, the user receives an SMS one time password in the form of a text message to their registered mobile phone number. This password is usually valid for a short period, often around 5 to 10 minutes, and can only be used once.
If the user missed the time limit, then the user has to ask for another new password. This can be limited to a few chances only. Usually not more than three times.
To complete the authentication process, the user must enter the one-time password into the required field on the website or application they are using. This ensures that only the person with access to the registered mobile phone number can complete the transaction or log into the account.
Benefits of SMS OTP Authentication
There are a lot of benefits of using SMS OTP Authentication for the purpose to secure any transactions. Due to the sensitive personal identification needed to close the transaction the user made, especially if it is connected with any financial deal between the parties involved. Here is some of the benefit the user can receive by using this system:
1. Enhance Security Benefits
Since the OTP SMS message is sent to the registered mobile phone number of the user, this is supposed to enhance security for the parties involved. Only the user can receive and open the OTP SMS and use that code to continue the process.
2. Improve User Experience and Convenience
The user will find it easier and more enjoyable to interact with a product, service, or system. Users can learn to make a deal or transaction online but still feel secure because they are the only party that knows about the transaction made.
Since the user can deal with it online, this will improve the convenience to avoid the need to come in person. But feels secure due to the personalization of the deal.
3. Compatibility with Existing Authentication Methods
Many authentication methods are existing nowadays. Such as PIN, token, bank card, or even biometric ID such as the user's fingerprint or even voice recognition. SMS OTP can easily be compatible with all the above methods, such as a secure and personalized ID like a PIN.
4. Flexibility for Different Types of Use Cases
The SMS OTP is flexible enough to deal with different types of use cases. Especially in online use cases, such as browsing a product, booking an appointment online, paying for any transactions, or simply asking for any information.
Anything the user needs from any provider or website; the information or transaction can only continue if the code sent to the user’s mobile phone number is the same.
Setting Up SMS OTP Authentication
Setting up SMS OTP authentication can vary depending on the system or service being used, but here are some general steps to follow:
1. Choose an SMS Gateway Provider
To send OTP messages, you will need to use an SMS gateway provider that can send text messages to mobile phones. You can research and choose a reputable provider that meets your needs.
Each provider probably has a different system but find the one that is the most suitable for the product or your system. But mostly, it should be user-friendly.
2. Integrate SMS Gateway with Your System
This usually involves using APIs (Application Programming Interfaces) provided by the SMS gateway provider to connect to their system. Learn this well, just in case of some disturbance or a glitch that needs attention.
3. Implement OTP Generation and Verification
Use a secure algorithm to generate OTPs, typically using a combination of random numbers and characters. It can be four digits, six digits, or even more. Verify the OTPs provided by users by comparing them to the expected OTP.
4. Define Security Policies
Such as the number of attempts allowed, the validity period of an OTP, and how long to lock out a user after failed attempts. Once again, this should be user-friendly without adding complicity. But secure enough to avoid any false transaction.
Usually, the provider limits the attempts to three times only. With the time long enough to switch between the systems. The usual is no more than five minutes with a six digits password. The transaction or login will be canceled if the attempts failed.
Define all these details carefully to avoid any complaints later on. Especially regarding the time limit that some people will find too soon if they are not used to the system.
5. Test and Deploy
Test the SMS OTP authentication system in a staging or test environment before deploying it to production. Ensure that it is functioning properly and is user-friendly.
Do the test for different kinds of people to get a different experience. People who used to deal online will react faster than others. That way, the user can see any discrepancy and make adjustments to the system, if needed.
By implementing SMS OTP authentication, users can provide an extra layer of security to their system or application, which can protect against unauthorized access and fraudulent activities. Nowadays, there are also SMS OTP via WhatsApp or email with a similar procedure to follow.
So, to protect any online accounts and transactions, using SMS OTP will give a lot of benefits to users. The extra security will make everybody feel more comfortable and secure. With Fazpass, you can effortlessly connect and unlock access to the best offers from leading multi-provider SMS OTP services. Contact us now!