Revenue from one-time passwords (OTPs) sent via over-the-top (OTT) messaging applications will grow 600% over the next five years, from less than $300 million in 2024, according to Juniper Research.
Mobile identity solutions leverage the mobile phone number as a unique identifier for verifying users’ identities in digital solutions. OTPs are unique codes delivered through messaging channels, such as SMS, which a user can leverage to verify their identity.
While global mobile identity revenue has historically been attributed solely to operators, Juniper Research’s latest study identified OTT channels, such as WhatsApp and Viber, as the most prominent threat to this status quo. Enterprises will be attracted to the channel’s end-to-end encryption, amidst high levels of fraud present across operators’ SMS networks today.
Identity APIs to Minimise Traffic Migration to OTT Channels
To combat the growth of mobile identity over OTT messaging channels, operators must provide Application Programming Interface (API) suites that provide increased value to enterprises than OTPs sent via OTT channels. To fully maximise the adoption of mobile identity APIs, Juniper Research has identified the SIM Swap API, which checks for illegitimate SIM swaps, as a service that provides an additional check which OTT channels are unable to provide; increasing the value of APIs to enterprises.
Research author Georgia Allen commented: “Unlike OTPs, which are susceptible to social engineering attacks, APIs provide robust authentication that is less vulnerable to such exploits. As operators launch these APIs, they must educate enterprises on these benefits, or risk losing authentication traffic to OTT channels.” Juniper Research