Are OTPs on their way out?

It started out as a convenience.

An added layer of security - the inclusion of a One Time Password (OTP) to
process transactions online.

Then it became a source of stress.

Some smartphones could help you copy a number and paste it to let a transaction
go through

Or apps which automatically entered the OTP. But that was confusing to some
people as well.

There was no standard procedure to deal with them.

For users with varying degrees of expertise, it became a race to switch between
the messaging app to see if the OTP had arrived, memorise it, switch back to the
app and enter it...

With banking transactions, this became a clear liability. A mistake in the entry
and the whole process had to be initiated all over again.

The last straw that got telecom operators to move away were SIM swaps where OTPs
were used to gain control over the user's phone and drain bank accounts

A new system is being piloted where one software layer will talk to another to
verify mobile numbers and approve transactions automatically. Users don't have
to intervene.

OTPs will probably disappear over time.

A lot safer and definitely less stressful.

#brands #behavioraleconomics #startups

Posted by Venu Gopal Nair on LinkedIn