SMS OTP form and improve user experience. Asking users to provide the OTP (one-time-password) via SMS is a popular method to confirm the phone number. Let's see a few cases for SMS OTP as below:
Two-factor authentication. In addition to the username and password, SMS OTP serves as a strong signal. It implements that the owner of this account is the person who received the SMS OTP.
Phone number verification. The Phone number is the user's primary identifier. In such services, users can enter their phone numbers to receive OTP via SMS to prove their identity. Sometimes it's combined with a PIN to constitute a two-factor authentication.
Account recovery. After users lose access to their account, OTP can be a way to recover it. Sending an email to their registered email address or an SMS OTP to their phone number are general account recovery methods.
Payment confirmation- In payment systems, some banks or credit card issuers request additional authentication from the payer for security reasons. SMS OTP is helpful for that purpose.
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