A one-time password (OTP) is a sequence of characters meant to authenticate users for single operations. OTP codes are usually administered to clients seeking to reset their account credentials. They also add an extra security layer to sensitive operations – e.g. banking.
What are the advantages of employing an OTP code?
Generated at random with the help of an algorithm, OTPs have several advantages over static passwords. Besides protecting users from identity theft, passcodes can be distributed across several channels such as SMS, voice, email, and even push notifications. Moreover, brands can leverage OTP to provide their audience with hyper-personalized offers through customizable templates.
How can OTP be used?
There are different ways OTP codes can be implemented. This can be done through physical tokens such as fobs, cellphones, and banking devices generating random passcodes. Alternatively, authentication can be carried out through software or via an app.
However they are used OTP codes are a fast, convenient and secure way to make sure that your transactions and identity stay safe.