Frictionless User Verification

Paidy, a buy-now-pay-later provider based in Japan, uses SMS One-Time-Passwords (OTPs) to complete user verification instantaneously each time a payment is initiated.

The table shows a sample framework, calculating the potential impact for a business using SMS OTPs.

Example:

An online payment services platform noticed a fall in its monthly transaction figures and is looking to switch from email to SMS OTPs to improve its transaction completion rate.

See case study

Number of customers	200,000

% of monthly customers with support cases from transaction issues	4%
Total monthly customers with transaction issues	8,000
Average cost of a support case	$7
Average total monthly cost of support cases	$56,000

% of support cases that can be avoided by delivering SMS OTPs reliably	70%
Cost savings from reduced delivery problems through SMS	$39,200

Cost per SMS	$0.015
Number of SMS OTPs sent per month per customer	2
Total monthly SMS cost	$6,000

Net savings in 1 month	$33,200
Cost savings for every $1 spent on SMS	$5.53