OTP (OTP) means or full form of OTP is One Time Password.
As the name suggests, it is a password that can be used only once.
One time password is required for different types of online transactions.
Your bank or any other service provider gives you a one-time password so that you can prove that you are the one doing the transaction, during the online transaction.
One-time passwords have made online transactions secure to a large extent and those who use one-time passwords cautiously reduce the chance of being fraudulent online.
So in this article, we will get complete information about OTP meaning one-time password.
What is OTP?
As you have already been told, OTP means a one-time password.
A password that you can use only once during the online transaction.
In today’s new era, when we do a lot of our work online, such as shopping, banking, payment, etc.
So there is a chance of being fraudulent online.
Whenever we do an online transaction, we have to enter our user ID and password.
In addition, an extra security layer is applied, in the form of One Time Password.
Whenever you enter your user ID and password for a transaction, then in the final step of the transaction, you have to enter a one-time password received on your mobile or Email ID to process your Transaction.
The OTP is valid only for a certain amount of time, if you did not use that OTP during that specified time, it becomes useless.
For different transactions, every time you receive a new OTP from your service provider, the OTP is usually four or 6 digits.
Which may be a mixed form of numerals or numbers and letters.
For example, if you use your debit card or credit card online, you receive a one-time password from your bank to complete the transaction which can remain valid for 10 minutes to 30 minutes.
How does OTP (OTP) work?
OTP or one-time password generated during the completion of any transaction
OTP is highly secure. Because it is automatically generated by the system, and there is no human intervention from anywhere.
The value of a one-time password is generated by the Hashed message authentication code algorithm and moving factors such as time-based information or event counters.
So, let’s say you are doing a banking transaction. So during that OTP is generated. No one else you knows the OTP.
Not even your bank staff.
When you enter the OTP you have received during any of your transactions on the system, the system matches it with the generated password.
If you entered the password that was generated by the system, then your transaction becomes successful.
Where is the use of OTP?
Today, OTP is required to do any kind of online transaction, you have to use OTP in the following major places.
- During banking transaction
- During online shopping
- While availing any service online
- While creating your account on social media and other platforms
How can OTP be obtained?
You can get OTP in different ways to use different services on different platforms.
Following are the four ways you can get OTP to complete your transaction-
- s.m.s. through
- By email
- By voice call
- By post
Today for most banking transactions OTP is received by email or SMS.
At many places, you also get Voice OTP facility also.
only a few OTPs are sent by post, the transaction in which addresses also have to be verified are sent by Post.
So, in that case, your OTP is sent by post to your registered address.
The password received by the post identifies both the user and his address simultaneously.
How is OTP?
OTP can be a mixed form of letters or numbers and letters
For most banking transactions, the OTP you receive is only in digit format, OTP can be from 4 to 6 digits.
Example of OTP-
Numeric OTP- 548736
Alphanumeric password- ILB- 229634
How Secure is OTP?
OTP is very secure
Only the user who has generated the OTP is known, it is received on that user’s mobile and email ID.
To make OTP secure, more security features are added to it over time.
Benefits of OTP
in today’s Online world OTP is proving to be very helpful in securing transactions safely, some of the major advantages of OTP are as follows-
- OTP prevents you from being fraudulent online
- Many times, when we swipe our credit card or debit card, many fraudsters can copy it, but due to OTP, they will not be able to do any transaction of any kind.
- OTP is delivered under registered mobile and email IDs under any circumstances.
- only the user is aware of the OTP generated during any transaction
Often your bank and other service providers always advise that in any case, your OTP should not be disclosed to any person,
not even to the bank employees.
Because OTP is the last step of any online transaction,
If for some reason someone has got your card details or internet banking details, then he will not be able to do any type of transaction.
till he will get the OTP.
Therefore, under no circumstances, you should person tell tour OTP to anyone.
Can banking transactions be done without OTP?
Yes, there are many service providers where if you use your card online then your transaction will be completed without OTP.
That is why you should never tell your card details to anyone
So friends, hope you have liked this article about OTP full form.
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