WhatsApp for OTPs and Notifications

January 23, 2024

WhatsApp for OTPs and Notifications

A key use case for sending SMS to end users is notifications and OTPs (One Time Passwords), however with the rise of SMS fraud and increases in SMS prices, this seems like an outdate practice. We explore this further in this blog.  

Device Coverage and Open rates

One of the benefits of SMS is that it was available on every device and why it became the de facto communication channel for notifications. However, for SMS to work the phone must be on a cellular connection, whereas WhatsApp works on cellular and Wi-Fi connection. This means that whether roaming or in a poor coverage area, the chances of an OTP being delivered to WhatsApp is far greater than SMS.  

Fraudulent SMS senders

SMS fraud is an increasing issue, and the main reason is the SMS sender can be easily spoofed to look like a legitimate business. With WhatsApp there is a strict onboarding process and legitimate businesses get a business tick (secure sender designation).  

Security and Encryption

SMSs are sent from the business to the end user unencrypted (clear text), whereas WhatsApp is encrypted end to end. What this means is that if someone intercepts an SMS the OTP/Notification can be seen, whereas for WhatsApp anyone intercepting the OTP will not be able to see the OTP due to encryption.  

Costs

SMSs are charged per message sent (often irrespective if the message was delivered of not). Whereas WhatsApp are delivered per 24-hour conversation irrespective of how man messages were delivered. What this means is that OTPs can be resent on WhatsApp over 24-hour period for no extra charges.  

Summary

The future of delivering OTPs and Notifications will move away from SMS to WhatsApp due to the many concerns around SMS - Fraud, Costs, Security, poorer Open rates.

With Business Messaging, like WhatsApp you get:

1. Protect Brand – Business Tick your customers know they are talking to you.

2. Grow Sales – 98% open rates, up to 60% CTRs, 4x conversation of email. Everyone can use WhatsApp.

3. Higher Engagement – Upsell products/services, interactive engagement e.g. Leave parcel Yes/No

4. Save money – Cheaper than SMS for most use cases (>1 SMS in 24 hrs to customer),

Sounds Interesting – Get in touch now.

We would love to chat with you about how your business could benefit from OMNI channel messaging and WhatsApp business platform with 4X conversion. Get in touch with us at sales@payemoji.com and we will schedule a call.

So go ahead and join the conversation by taking advantage of the 23 hours that consumers spend per week on their Messaging Apps and use that to grow your Business.

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