Is It Time For The Next-Gen Option To OTP?
Two-factor authentication is now a staple in the business world when it comes to validating customer communications. Allowing businesses to verify user identity through two or more authentication mechanisms, the method has been helping in adding an extra layer of protection to any sign-in process and protecting the business against breaches due to lost or stolen credentials.
While receiving a code or OTP on a registered mobile device for one login or transaction has been one of the most popular authentication mechanisms, it is now time for the next-gen option to OTP: Flash Call!
What are the challenges associated with OTP?
When users try to log into an app or try to make a banking transaction, OTP has been the go-to choice for secure authentication. According to reports, SMS-based authentication revenue will reach $39 billion globally in 2022, representing 5% of total operator-billed revenue.
Although OTPs help adds an additional layer of security, they bring with them their own set of challenges. For instance,
- OTPs are known to be inconvenient and not very user-friendly. Users who aren’t very tech-savvy often find the OTP process confusing, unnecessary, or even cumbersome.
- OTPs demand a reliable cell phone signal as well as sufficient battery life, which when not guaranteed, can result in delivery failures.
- Many times, due to poor network, users fail to receive the OTP or receive it very late, requiring them to reinitiate the authentication process all over again – causing a high level of frustration, especially with banking transactions.
- Some OTPs that are sent to the mailbox also tend to be delayed or land in the spam folder, which again leads to lost access.
- For apps or transactions that make use of 3rd party messaging providers, users are also likely to incur a per-text charge to access their OTP and go ahead with the authentication process.
- When using a mobile application that initiates an OTP process, toggling between the app window and the SMS window isn’t always everyone’s cup of tea; there is also the possibility of the wrong code being entered by the user, which requires users to start over again.
- Users who need to authenticate a login while travelling abroad often do not receive an OTP because they do not have the international roaming facility enabled on their device.
- For users whose OTP device is lost or stolen, multiple login attempts by bad actors can permanently lock them out of their accounts.
That apart, SMS is also the target of fraud and prone to security issues created by routing through questionable providers and grey routes.
What is Flash Call?
As the latest method for two-factor authentication, Flash Call reduces the widespread dependency on OTP, while helping overcome issues about inconvenience, data security, and lack of user-friendliness. It uses voice – instead of messaging – for authentication and is a far more customer-centric and cost-efficient solution to authenticate users, helping verify a user’s identity – without involving an SMS code. Since it involves no user interaction, Flash Call has the potential to disrupt the highly established A2P SMS market.
For instance, the global messaging app WhatsApp is reportedly working on integrating Flash Call as an alternative to OTP. Instead of making users enter a one-time, 6-digit code that they receive by SMS, the new Flash Call feature will allow WhatsApp to directly make a call to their device and verify the phone number – without users having to take any action. Such authentication will not overcome all the drawbacks of OTP; it will also pave the way for quicker verification and improved customer satisfaction.
How does it help businesses?
Flash Calling authentication is expected to near 128 billion calls globally by 2026; here’s how the new mechanism can aid businesses:
- Accelerate the authentication process: Unlike the time-consuming OTP process where users have to open their SMS application to check for the OTP and enter it to authenticate themselves, Flash Call automates this verification process – without users having to do anything. As an automatic call is made – and then rejected – and the last four digits are automatically inserted, the device is instantly verified – thus accelerating the authentication process.
- Offer a richer user experience: Flash Call allows businesses to have a greater ability to customize the user interface, the overall user experience is richer and more engaging. Since users no longer have to go back and forth between apps, there is a considerable increase in user satisfaction, which, in the long run, can also lead to better loyalty and retention.
- Improve conversion rates: Flash Call is also a great way to improve conversion rates. Since users are no longer distracted by receiving and entering one-time passwords, businesses can pave the way for automatic verification and ensure quicker user signup – which can result in improved conversion rates in the long run.
- Enable better security: Flash Calls are also known to more secure and amenable to privacy. Since the mechanism cannot be intercepted or terminated by fraudsters, it results in a higher level of security. At the same time, for apps or transactions that are used across multiple devices, Flash Call will make it easier and safer for users to log in to each device separately.
- Reduce operational costs: Businesses today end up spending way too much money running their business for activities that span marketing, online advertising, analytics, and more. Common 2-factor authentication mechanisms like OTP only add to these costs, especially in countries where operators charge high rates for SMS and phone calls. Flash Call is a great alternative to the expensive OTP, allowing businesses to save a considerable sum on the authentication process.
As a new technology that can be used to authenticate users, Flash Call is a great alternative to the traditional, costly, and ineffective OTP authentication method. Not only does it enable quicker and more efficient authentication; it also aids in improving the end-user experience through automated verification. Given the numerous benefits it offers over OTP, Flash Call might just become a hot favourite for commerce, payments, and telecom companies. When that happens, let us show you how a powerful new alternative to OTP could work!