OTT Channels to Generate $2 Billion by 2029

Revenue from one-time passwords (OTPs) sent via over-the-top (OTT) messaging applications will grow 600% over the next five years, from less than $300 million in 2024, according to Juniper Research.

While global mobile identity revenue has historically been attributed solely to operators, Juniper Research’s latest study identified OTT channels, such as WhatsApp and Viber, as the most prominent threat to this status quo. Enterprises will be attracted to the channel’s end-to-end encryption, amidst high levels of fraud present across operators’ SMS networks today.

To combat the growth of mobile identity over OTT messaging channels, operators must provide Application Programming Interface (API) suites that provide increased value to enterprises than OTPs sent via OTT channels. To fully maximize the adoption of mobile identity APIs, Juniper Research has identified the SIM Swap API, which checks for illegitimate SIM swaps, as a service that provides an additional check that OTT channels are unable to provide, increasing the value of APIs to enterprises.

“Unlike OTPs, which are susceptible to social engineering attacks, APIs provide robust authentication that is less vulnerable to such exploits. As operators launch these APIs, they must educate enterprises on these benefits, or risk losing authentication traffic to OTT channels,” commented research author Georgia Allen.