Signicat’s SMS OTP is a simple identification method based on one-time passwords on the SMS channel. A typical scenario may be this:
A user accesses a service on a merchant that requires some sort of identification.
A merchant sends an SMS with an OTP code to the user.
The user types in the recently received code in the merchant’s application.
The merchant receives the user’s telephone number in the response from Signicat.
Although this method alone does not provide adequate security, from a technical standpoint there is nothing that prevents a merchant from using SMS OTP as a standalone authentication method. However, the usual and recommended use case is to utilize SMS OTP boost an existing login process. SMS OTP, integrated with any username/ password login solution, will form a two-factor authentication method.