OTP – What does it stand for? (For Banking)

OTP

OTP – What does it stand for? (For Banking)

There are many acronyms in the English language especially in politics. All these acronyms can get confusing and humorous at times when you try to solve their meaning. OTP is one of those that get blank stares when a person sees it for the first time. It can be easily forgotten if you do not know its purpose for application. This article will unbundle the acronym, its meaning and its function. As stated, politics and acronyms are joined at the hip. However OTP is far from politics. In fact it has to do with business transactions. This acronym often appears on Tumblr . Banking systems use this as a term of convenience for making transactions.

OTP stands for “One-Time Password”

The One-Time Password is number code used for internet banking and it can only be used once. This method of internet banking using pin code is gaining popularity nationwide. Banks uses this to certify online transactions by users.

The feature and certification comprises of two security codes. The pin is made to last for a few minutes. After a few minutes it will lose its authentication. The amount of time the pin lasts for depends on the bank. Some banks prefer their codes to have a longer time frame. When the pin is typed in and it’s incorrect it will lose its authentication and it will reset.

How does OTP (one time pin) work?

The OTP is used for online transactions. When you want to send someone money through the internet, you will fill in the details required. Then you agree to send cash through the banking transaction. You will be sent the one time pin to you cellphone number. This is meant for authentication and verification purposes. The computer systems of the bank using secure algorithm that creates a pin for you.  The pin must match the banking system to transaction. Getting the one time pin will be the last step of the transaction.

First National Bank popularly known as FNB, has adopted a strategy of technological progress within the banking sector. It is leading in most IT related banking features.  To stay ahead it is imperative that technology is developed to make it convenient for customers. One of the innovative features of one time pin offered by FNB is app based. If you have an app on your smart phone. The transaction will be verified with the app.  With this kind of technological progress it has allowed the bank to maintain its high security standards and features for customers.

The problem
The growth of the internet and more of the public using it has also opened doors for fallacious and harmful activity to take place online. Documentation theft has been one of the major problems South Africa has been dealing with. Online businesses and institutions are not immune to this. However at FNB online security is very high. The one-time-pin is one of those features that limit criminal activities. It assists in online banking transactions by keeping your activities safe. When you transact online and you fail to get a one time pin. Contact your bank immediately.

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