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How to increase digital trust with customers? In the age of digitization, it is a strategic requirement for most businesses. To achieve the organizational goals, you have to provide exceptional user experience, determine acceptable risks, and define the operating model.

This isn’t an easy task. But to reach millions of prospects, find a solution that is accessible, usable, and appropriate for business and its users.

Nothing is better than two-factor authentication (2FA). It has become the norm and trend for various verification/authorization needs. It is an effective way of preventing fraud and protecting customers from misuse/abuse of their information.

Now, every platform and application is utilizing 2FA to authenticate mobile devices while adding another layer of security.

What does SMS OTP Authentication Mean?

OTP stands for One Time Password – a temporary authentication code sent via SMS to a user’s registered mobile number. The user receives SMS OTP during online transactions, creating a new account, or logging in from a new device. The system automatically generates and sends an OTP, which the user can use within a stipulated time frame.

These randomly generated passwords are only valid for a single login session, preventing unauthorized use or fraudulent transactions before they occur.  

Where is the Purpose of SMS Authentication?

Initially, the banking and financial services sectors were associated with OTP services, but it is not like this today. Every application and platform from any industry is using SMS OTPs for device and user authentication. There are other purposes as well:


To restrict fake IDs/users by authenticating during the registration process.

Resetting Passwords

To restrict fraudulent entities, reset the password of any user.

Account Reactivations

Users can reactivate their dormant accounts by requesting to reauthenticate via OTP.

Login from New Devices

Through SMS OTP, users can request identity verification if they log in from a new device or location, or IP.

Transaction Confirmation

E-commerce companies ask for OTPS for pre-paid deliveries for authentication.

What are the Benefits of SMS OTP Authentication?

SMS has proven to be the simplest way of user authentication. As per Statista, the population of mobile users will reach the mark of 931.3 million by 2022 end, which means people can easily receive text messages. Also, around 48% of users prefer SMS as a marketing platform as it has an open rate of 20% compared to emails. And for enterprises, it offers several advantages like:


The SMS OTP delivery methods offer significant cost savings as there are no infrastructure and hardware costs for setup. A centralized system connected to the internet will make everything happen for users. Businesses can add this software to their cloud telephony subscriptions, giving them ease to find all information in one place.


A business can protect its customers from cyber abuses as the SMS OTPs are temporary; they are not reusable. The person will receive OTP on their registered mobile number, which is unlikely to get intercepted on the way. Mobile devices and emails also have distinct built-in authentication methods to prevent replay attacks.

High-Delivery Rates

OTPs have high delivery rates; customers will receive it for sure, and sometimes it may be delayed due to network error or technical glitch. Companies now have self-build SMS OTP verification solutions with delivery receipts (DLRs) that acknowledge the deliverability of the SMS.

Low Wait-Time

As mentioned earlier, SMS OTP verification is almost instant (but there can be unforeseen network issues). Most companies deliver SMS in less than 10 seconds on average. So, there is no wait time for customers.

No Shared Secret to Exploit

Some mobile authenticator applications depend on a shared secret, where the server is combined with the current time to generate an OTP. To restrict attackers from uncovering the shared secret, On-Demand OTPs are the best. It sends random values from the server, leaving no shared secret for exploitation.


What are the reasons behind users’ password recycling? Because they have to create and manage the sheer volume of online accounts. According to research, people need to remember ten (10) passwords every day. But SMS OTP authentication removes hassles as users get unique codes every single time.

Why is SMS-based 2FA in Demand?

Giant organizations like Google, Amazon, Microsoft, and more widely use 2FA. But why? SMS authentication is effortless to deploy and operate. Customers and employees have grown to its use whether it is logging, transferring funds, or playing games. It provides a quick and seamless authentication experience to users.

Go Beyond With SMS Authentication

Two of the widely used forms of 2FA to deliver OTPs are email and SMS messages. Many organizations can enjoy user convenience, ease of administration, and low-associated cost with SMS OTPs authentication. Prioritize usability and security for your business – connect with Sarv to get the best solution. We are just one call away.


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