When it comes to verifying users online, One-Time Passwords (OTPs) are a common and effective method. They help ensure that a user is who they claim to be, especially for activities like logging into accounts, making purchases, or confirming identity. Two popular methods of sending OTPs are WhatsApp OTP and SMS OTP. In this blog, we will compare the two and help you decide which is better for your business.

What is WhatsApp OTP?

WhatsApp OTP is a One-Time Password sent directly to a user's WhatsApp number to verify their identity. The OTP is a temporary, unique code that the user must enter within a short period (usually 5 to 10 minutes). This method uses WhatsApp's fast and secure messaging platform, making it a convenient way to verify users.

What is SMS OTP?

SMS OTP is the traditional method of sending One-Time Passwords via text message (SMS) to a user's phone number. The OTP is sent through a mobile network and works on any mobile phone, even without an internet connection. Users must enter the OTP they receive via SMS within a specific time to complete the verification process.

Key Differences Between WhatsApp OTP and SMS OTP

Let's look at some key points that highlight the differences between WhatsApp OTP and SMS OTP:

1. Speed and Delivery

  • WhatsApp OTP: WhatsApp messages are delivered almost instantly. The delivery is much faster compared to SMS because WhatsApp uses internet-based messaging, which is more efficient.
  • SMS OTP: SMS messages can sometimes take longer to deliver, especially in areas with poor mobile network coverage. Delays can also happen if the network is congested.

Winner: WhatsApp OTP is faster because it uses internet messaging, and the delivery is almost instant.

2. Reliability and Security

  • WhatsApp OTP: WhatsApp uses end-to-end encryption, which means the messages are securely delivered and cannot be read by anyone other than the sender and receiver. This makes WhatsApp OTP more secure than SMS.
  • SMS OTP: While SMS is a secure method of communication, it is not as secure as WhatsApp because SMS can be intercepted by attackers using techniques like SIM card swapping or spoofing.

Winner: WhatsApp OTP offers better security with end-to-end encryption.

3. User Experience

  • WhatsApp OTP: Since WhatsApp is widely used by billions of people worldwide, most users are familiar with the app and use it regularly. Receiving OTPs on WhatsApp feels more natural and convenient, as it does not require switching between apps or checking for missed SMS.
  • SMS OTP: SMS OTP requires users to check their message inbox and manually type in the OTP. Sometimes, users may have trouble receiving the OTP due to network issues or carrier delays.

Winner: WhatsApp OTP offers a smoother and more convenient user experience.

4. Reach and Accessibility

  • WhatsApp OTP: WhatsApp OTP is ideal for users who have the app installed and active. However, it does require an internet connection. If users don't have access to the internet or aren't using WhatsApp, this method becomes less effective.
  • SMS OTP: SMS OTP has a wider reach since it works on any mobile phone, even without an internet connection. This makes it a good option in areas with limited internet access.

Winner: SMS OTP reaches more people, especially in areas without internet access.

5. Cost Efficiency

  • WhatsApp OTP: Sending messages through WhatsApp can be cheaper for businesses, especially if they have a global customer base. WhatsApp messaging is often more affordable than SMS, especially when sending large volumes of OTPs.
  • SMS OTP: Sending SMS OTPs can be expensive, particularly for businesses with large customer bases in different countries. International SMS charges can quickly add up.

Winner: WhatsApp OTP is more cost-effective, particularly for global businesses.

When to Use WhatsApp OTP

  • If your customers are mainly internet-savvy and actively use WhatsApp for communication, WhatsApp OTP is a great choice.
  • For businesses looking for better security, instant delivery, and cost savings, WhatsApp OTP is the way to go.
  • If you're running a WhatsApp campaign or using the WhatsApp Business API, integrating WhatsApp OTP makes it seamless to manage customer verification.

When to Use SMS OTP

  • If you need to reach customers in areas with poor internet connectivity, SMS OTP may be more reliable.
  • For businesses that cater to a wide range of customers, including those who may not use WhatsApp regularly, SMS OTP is a safer bet.
  • If your customers don't have access to WhatsApp, using SMS OTP will ensure you don't miss out on verification.

Conclusion

Both WhatsApp OTP and SMS OTP are effective methods for verifying customer identity and ensuring secure transactions. However, WhatsApp OTP has several advantages over SMS OTP, including faster delivery, better security, and a smoother user experience. If your customers are already on WhatsApp, it makes sense to use WhatsApp OTP for authentication.

On the other hand, SMS OTP is still a reliable and useful method, especially for businesses that need to reach customers without internet access or in areas where WhatsApp may not be widely used.

For businesses looking to leverage WhatsApp Business API and WhatsApp campaigns, WhatsApp OTP provides a more seamless, secure, and cost-effective option. So, consider your customer base, reach, and security needs when choosing between the two methods.