Complete Guide on Using WhatsApp OTP for eCommerce Businesses

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WhatsApp has been a hot topic of discussion when it comes to marketing strategies, with businesses recognizing its potential for customer engagement. It has become a popular tool for businesses to connect with their customers, share updates, and build relationships. However, there is one new and emerging use case that has been gaining attention lately - WhatsApp OTP.

In this article, we will provide you a comprehensive guide on how to leverage WhatsApp OTP for your eCommerce business. We will delve into the details and explore this innovative method of using one-time passwords (OTPs) through WhatsApp. So, let's get started and discover how WhatsApp OTP can benefit your business and enhance your customers' experience.

What is WhatsApp OTP? 

A One-Time Password or OTP is a security feature used to verify a user's identity during online transactions or account logins. When a user initiates any of the two actions, a unique numerical code (OTP) is generated and sent to the registered mobile number. 

The user then inserts the OTP within a limited time to complete the authentication process. In the case of WhatsApp OTP, it refers to a one-time password sent by a business via WhatsApp to verify the user's identity or validate their phone number for communication purposes or accessing certain features.

Whatsapp OTP Vs. SMS OTP 

The main difference between WhatsApp OTP and SMS OTP lies in the medium through which it is delivered to the user. SMS OTP is sent to the user's number through the traditional short message service (SMS). It relies on the user's mobile network connection and can be received on any mobile device.  

On the other hand, WhatsApp OTP utilizes the WhatsApp messaging platform to deliver a one-time password. It requires the user to have the WhatsApp application installed on their smartphone and be connected to the internet. 

For security purposes, WhatsApp OTPs are preferred as the platform provides end-to-end encryptions. Unlike SMS OTPs, WhatsApp OTPs are not limited to a single country. You can send OTPs worldwide if the user has the application installed on their mobile phones. 

What are the benefits of sending WhatsApp OTP?

Let’s now look at some significant advantages of WhatsApp OTP verification. 

  • Provides a seamless and convenient option - With WhatsApp OTP, users receive the one-time password directly within the app, eliminating the need to switch between apps or wait for an SMS.
  • WhatsApp is a widely used application - WhatsApp is widely used and familiar to many users. Using WhatsApp for OTP can help businesses leverage this familiarity and enhance user trust, as the communication occurs within a platform they are already comfortable with. 
  • Provides instant message delivery - WhatsApp messages are typically delivered in real-time, ensuring that OTPs are received promptly. This reduces delays in the authentication process, allowing users to proceed with transactions or logins quickly.
  • Enhance user experience with multimedia content - WhatsApp supports multimedia content such as images, videos, and documents. This enables businesses to send additional visual or interactive elements with the OTP, enhancing the user experience and providing extra context if needed.
  • It can be utilized for double-factor authentication - WhatsApp OTP can be utilized as a component of two-factor authentication, adding an extra layer of security to user accounts. It becomes more difficult for unauthorized individuals to access sensitive information when you combine something the user knows (such as a password) with something they possess (their smartphone with WhatsApp)

5 different use cases examples of WhatsApp OTP

WhatsApp OTP can be used in several ways based on your business goals and objectives from the automation. 

1. Account Verification

When users sign up for an account on a platform or app, businesses can send a WhatsApp OTP to the user's registered phone number. Entering the OTP in the provided field will verify their identity, preventing fraudulent account creation.

2. Transaction Authorization 

In online banking, eCommerce, or any transactional activity, businesses can use WhatsApp OTP as an additional security measure. After initiating a transaction, users receive a WhatsApp OTP that they must enter on the platform to authorize and confirm the payment or transfer, ensuring that only the authorized user can complete the transaction.

3. Password Reset 

When users forget their account passwords, businesses can employ WhatsApp OTP as part of the password reset process. Users can verify their identity and securely regain access to their accounts with the OTP sent via WhatsApp. This minimizes the risk of unauthorized password changes. 

4. User Support 

When users seek assistance from customer support, WhatsApp OTP can be used as an authentication method to verify the user's identity before providing personalized support. This ensures that the support team interacts with the correct user and enhances the security of sensitive account-related discussions. 

5. Account Recovery

In situations where users are locked out of their accounts for various reasons, such as forgotten passwords or suspicious activity, WhatsApp OTP can be employed for account recovery. Businesses can help users securely regain access to their accounts through a WhatsApp OTP and ensure the correct account owner is recovering it. 

How to send OTP on WhatsApp: Step-by-Step guide

To send OTP on WhatsApp, you need to follow these steps methodically: 

1. Identify triggers 

Determine the specific events or actions that should trigger the sending of an OTP on WhatsApp. This could include user registrations, account password resets, transaction verifications, or any other situation that requires a secure verification process.  Identifying these triggers will ensure OTPs are sent at the appropriate times and to the right individuals.

2. Identify goals 

Clearly define the purpose and goal of the OTP you intend to send on WhatsApp. For example, if the goal is to verify a transaction, the OTP should validate the transaction's authenticity before it is considered complete. If it is meant for confirming a COD (Cash on Delivery) order in your store, the OTP confirms the customer's intent to purchase and receive the order. Defining these goals helps ensure that the OTP serves its intended purpose effectively.

3. Sign up for a WhatsApp Business API solution 

To send OTPs on WhatsApp, you need to sign up for a WhatsApp Business API solution like or similar platforms. These solutions provide the necessary infrastructure and tools to integrate your business systems with the WhatsApp platform. This integration allows you to automate the process of sending OTPs without the need for manual intervention. 

4. Create WhatsApp template messages 

After signing up for a WhatsApp Business API solution, you must create a WhatsApp template message. Based on the different types of OTPs you need to send, you can create template messages that comply with WhatsApp's guidelines and include placeholders for dynamic information, such as the OTP code itself. Creating these templates in advance allows for easy automation within the WhatsApp Business API solution. 

5. Go live

Activate your WhatsApp Business API integration and start sending OTPs. Monitor the delivery and measure the effectiveness of OTP verification on WhatsApp, ensuring that users receive and check their OTPs.

How to personalize WhatsApp OTP messages 

When it comes to using One-Time Passwords (OTPs) for authentication on WhatsApp, there's an opportunity to go beyond the standard, generic OTP messages. Personalizing OTP messages can help eCommerce businesses enhance the overall user experience and create more memorable customer interactions.

1. Customizing OTP Content

Instead of sending a plain, generic OTP message, consider customizing the content to make it more engaging and relevant to each individual customer. This can be achieved by incorporating the customer's name and relevant purchase details or adding a personality touch to the message. For example, you can use phrases like "Hi [Customer Name], you're just one step away from securing your purchase!"

2. Incorporating Transaction Details

Consider including relevant transaction details in the OTP message to provide context and reassure customers. This can include the item name, order number, or other relevant information specific to the customer's purchase. For example, "Hi [Customer Name], your OTP for Order #123456 is [OTP]."

3. Infusing Humor

Injecting humor or creativity into OTP messages can leave a lasting impression on customers. Depending on your brand voice and target audience, you can include a playful message or pun related to the verification process. However, be mindful not to compromise clarity or professionalism while doing so.

4. Using Emojis 

Emojis have become a universal language that adds visual appeal and emotional expression to messages. Including relevant emojis in OTP, messages can make them more visually appealing and relatable. For instance, upon successful verification, a thumbs-up emoji can be added alongside a congratulatory message.

Provide seamless user experience with WhatsApp OTP 

Leveraging WhatsApp OTP for eCommerce businesses is made simple with the WhatsApp Business API. With automations, businesses can enhance their customer experience and streamline their verification processes. 

To explore the possibilities and learn more about implementing WhatsApp OTP for your business, or how you can use them in WhatsApp marketing campaigns, book a demo with today

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