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OTP – What does it stand for? [For Banking]

Last Updated: June 22nd, 2018
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OTP

Have you ever wandered what does OTP stand for? You do know that it’s just an acronym for a meaningful function – right?

Then, you’re in the right place…

…Because I’m going to discuss with you the meaning of OTP and where it is mostly used.

Apparently, the acronym is often used on Tumblr however we see the term mostly in banking systems.

Now, let’s have a look at what it means in banking.

OTP stands for “One-Time Password”

The One-Time Password is a unique [number] code that can only be used once for internet banking.

The password is popular referred to as a One-Time-Pin in South Africa.

It’s a two factor security feature banks use to authenticate legitimate users making online transactions.

The pin will remain valid for a couple of minutes, depending on the institution and then later expire.

When entered incorrectly, the pin automatically resets.

Here’s how it works with an example

You want to pay someone or transfer some money online.

The otp will be your final step of the process for making a banking transaction.

When you confirm the payment, the one-time pin will be sent to your cellphone number for verification and validation.

The pin will be randomly generated for just a one-time transaction.

The pin must match that of the banking system to process successfully.

The best part?

The process of authenticating legit users via the OTP is slowly changing for the better.

FNB, a leading innovative bank in South Africa have changed the way they send otp.

If you have your mobile app installed, they will verify the transaction with the app. It is the fastest and safest way to validate user information.

The problem

The thing is that banking sector has witnessed a lot of fraudulent activities in the country.

The one-time password is a great security feature that has helped millions of online bankers protect their transactions.

If, for whatever reason you didn’t receive the otp verification code, please contact your bank immediately for further assistant.