OTPs are rapidly becoming unreliable and insecure for fintech authentication. Modern security demands stronger, cryptographically bound identity verification methods.
🚩 Why OTPs Are Fading Out
- Vulnerable to SIM-swap, phishing & malware attacks
- Delivery failures due to telecom dependency
- No device-level cryptographic proof
- High recurring cost for fintech products
🔑 What’s Replacing OTPs
- Passkeys — cryptographic, device-bound credentials
- Biometrics — frictionless secure identity verification
- Hardware-backed MFA — resistant to phishing & cloning
🧩 What This Means for Fintech
- Stronger fraud prevention & compliance alignment
- Smoother onboarding & checkout experiences
- Reduced operational cost and telecom reliance
👉 Full article here:
https://medium.com/@vaibhav.shakya786/the-future-of-authentication-passkeys-biometrics-and-the-death-of-otps-in-fintech-ab0f02934a73
💬 Thoughts?
Are passkeys ready to replace OTPs in mainstream fintech apps?
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