Learn What OTP Is and Its Benefit for Your Business!

30 April 2023

Maybe many people ask what OTP is. OTP itself is actually often used by several applications when you try to log into their system. You could say OTP is a security system that is useful for providing additional security for users of the system.

Currently, additional security systems are increasingly in kind, given the frequent occurrence of cyber crimes. Therefore, it is important for someone to know what OTP is so that he understands how it works in a simple way and what benefits OTP provides for a business.

Digital Progress

Before discussing what OTP is, we should first talk about technological advances. The world today is much different than it was a decade ago. Many aspects of life today are now supported by technology. Call it shopping, transportation, to work.

You could say most of them have switched to the digital era. Technology brings big changes to human life. Everything is now much more practical than before. More positive changes were obtained by the community than negative impacts.

The emergence of smartphones also makes daily activities more practical. Communication between people has also become much simpler. Many things can be done only from a mobile screen. Work activities, banking, and shopping can be done while lying in bed.

But new changes are often accompanied by new problems as well. The many activities carried out practically are now also overshadowed by digital crime. One that often happens is personal data theft and hacking of personal accounts that can harm the owner.

Therefore, the security system for technology is always updated. This is to prevent various kinds of bad possibilities from happening. The existing security system is layered, starting from the use of fingerprint scanners, and face recognition to passwords. In addition, there is one more frequently used method. The method is called OTP.

About OTP

What is OTP? Maybe you have often seen and met this security system called OTP in everyday life. OTP, which stands for One Time Password, is a security system that requires validation when someone tries to log into a particular system.

Usually, someone only needs an ID and password to log in and access certain things. But for this era, it was too risky. Especially if the system or application that is accessed contains personal things or invites crime. These reasons make many parties use OTP for their systems.

Different Kind of OTP

The working principle of OTP is simple. As the name suggests, the OTP system provides a system that can only be used once. The password or code will be received by the party needing verification. After entering the code obtained, the person only needs to enter the code. There are several types of OTP:

OTP SMS

This OTP is one of the most frequently used forms of OTP. By entering the required information when logging in, you can send an OTP to your mobile number. After that, you will receive an SMS containing an OTP number that you must fill in within a certain time. You must have a small amount of credit on your cellphone.
OTP Call

This type of OTP uses a phone call. So you will only get an OTP when you pick up the call and hear the OTP number. You will get this OTP number when you register your telephone number. One example of this OTP is the Miscall OTP which you can get through Kokatto!
Email OTP

This OTP still works in the same way as the previous two OTPs, namely the OTP code will be sent via email. However, this OTP tends to be insecure because emails are usually easier to hack than personal telephones. So you should look for other OTP options if there are any.
Notification OTPs

The way this OTP works is still the same, the difference is that this OTP will appear in the application notification that you use to log in. Compared to using OTP for voice calls and SMS, OTP notifications only require a stable internet connection and do not require credit to get an OTP code.

Benefits of OTP for Business

The benefits of OTP for your own business can be said to be quite a lot. Apart from customers, you can also benefit from OTP for business. The following are some of the benefits of OTP:

Increase the Security Layer

Because OTP is usually received by users, having an OTP will help secure the transactions used. By registering a telephone number, the OTP will only be received by the party concerned. In contrast to the use of IDs and passwords which are sometimes easier to guess than using OTP.
The existence of an additional layer of security makes security when logging in or transactions safer. That way, the possibility of customer data being hacked by other parties will be much smaller. Transactions can also be carried out safely and without interruption so that they cannot interfere with the smooth running of your business.
Increase Customer Trust

By providing a sense of security and comfort for customers, you can increase customer trust. This is quite important considering that customers themselves need it when making transactions. With the additional layer of security provided, customers will have more trust in transactions made to your business.
Because apart from selling quality products, a business must be able to provide the best service for customers. With a layer of security such as OTP, customers will feel that you have provided more services by providing additional security for them.
Giving Customers

Apart from the two reasons mentioned above, there is one other benefit that you can give customers. The benefit is that you can provide an OTP option. Currently, there are many types of OTP such as SMS, telephone, or WhatsApp. Customers can choose which OTP they want to use.
That way, customers can choose which OTP they want to use which is more convenient. Moreover, the advantages of using the OTP are different. You have to adjust it to the background of your business customers.

This is a brief explanation of what OTP is and the benefits a business gets from using OTP. There are various types of OTP itself so you can choose which type of OTP you want to use. Most importantly, you must be able to help secure transactions in order to create a sense of security and comfort.

You can also get the Miscall OTP service through Kokatto. In addition, there are customer care services and chatbots that can help customers get the best service. For more info, you can visit Kokatto!