One Time Password (OTP)

June 4, 2024

By Apoorva Sharma
Centered Image

One Time Password (OTP) is a series of alphanumeric characters that allows users to authenticate their identity. It can seamlessly integrate into any platform providing an additional layer of security.

Why is OTP Security needed?

OTPs are a fast and secure way of accessing personal information and authenticating transactions all the while averting fraud and scams. They also prevent the creation of duplicate accounts by linking each account to a user through their registered details and act as a verified security tool in case the user forgets their static password by sending a recovery OTP to reset their password. After such verification, businesses can also send relevant information such as confirmations, reminders, status and delivery updates, and promotional offers to their customer’s registered information.

The result of a single compromised password:
The largest fuel pipeline in the U.S. was hacked leading to shortages.

The VPN account didn’t use multifactor authentication, a basic cybersecurity tool, allowing hackers to breach Colonial Pipeline’s network using just a compromised username and password. (Al Jazeera)

Static passwords are vulnerable to cyberattacks since they may be used across various accounts, devices, and browsers and are changed infrequently. This makes it easier for cybercriminals to conduct digital assaults by hacking, cyber breaches, or guessing weak passwords. OTPs, on the other hand, prevent unauthorized access even if users know the static password, as they need to verify the OTP code. Such a code is uniquely generated each time and only valid for a few minutes, making it highly secure.

Which OTP Medium to use?

OTPs are usually sent to a registered phone number or email to validate their users. The most dependable mediums used to send an OTP are SMS, Email, and Voice.

  • SMS OTP is sent to the registered mobile number and is most widely used. It is the fastest and easiest way to verify an individual's identity as almost everyone has a phone number and can receive an SMS without connecting to the internet.
  • Email OTP is sent to the registered email address to serve the same purpose more officially.
  • Voice OTP is an alternative to receiving a text message as it is also received on the registered phone number, but through a voice call.
Centered Image

2 Factor Authentication

When two of the three mentioned mediums (SMS, Email, Voice) are used to authenticate the user at once, it falls under 2FK Authentication. It is a dual-security measure allowing identification by sending two OTPs, mostly done through SMS and Email simultaneously. In such a case, the user will have to input two codes through chosen mediums when trying to log in or authorize a transaction.

Centered Image

During a 2023 survey, more than 40% of

respondents among developers worldwide stated

that increasing 2FK Authentication adoption was

their top authentication priority (Statista).

Centered Image


The use of CPaaS is expected to grow at a rapid pace in the coming years. To stay competitive in their markets, businesses are transitioning to the use of this platform to engage with their target audiences. The advantages of CPaaS are endless, ranging from speedy and consistent customer interaction to a cost-effective way to help your team through automation and knowledge of customer data. Over time, businesses can better understand the behavior of their customers using this service, allowing them to utilize their resources effectively.

How can PIXABITS serve your OTP and 2FK Authentication needs?

Pixabits Omni-channel CPaaS Platform provides users with OTP API which can be integrated on any platform for authentication. We offer OTP service through SMS, Email, and Voice allowing single or multi-authentication as needed. Reach out to inquire about our OTP and 2 Factor Authentication services.