SMS Cost Optimisation
Cut spend on SMS one-time codes by shifting eligible authentication traffic to passkeys and push notifications.
The challenge
SMS OTP is a significant and growing operating cost for organisations that authenticate large customer bases, particularly with international carrier fees and the rise of SMS pumping fraud. Because SMS is also comparatively weak against SIM-swap and interception attacks, teams need a way to reduce dependence on it without breaking authentication for users who lack another verified channel.
Key capabilities in this use case
Passkey-first routing
Direct returning users with an enrolled passkey straight to a device-based challenge, avoiding an SMS send altogether.
Push notification fallback
Use in-app push as a lower-cost, more secure alternative to SMS for users on the mobile app.
WhatsApp OTP channel
Offer WhatsApp-delivered codes as a cheaper and often faster alternative in markets with high WhatsApp adoption.
SMS as last resort
Reserve SMS delivery for users with no other enrolled channel, minimising volume while preserving accessibility.
Core capabilities
Channel-priority rules
Configurable order of preferred verification channels.
Passkey and push support
Lower-cost channels available as SMS alternatives.
WhatsApp OTP delivery
Alternative messaging channel for one-time codes.
Delivery analytics
Visibility into channel usage and cost impact.
Shifting verification traffic away from SMS
A digital bank operating across several countries finds its SMS OTP bill rising as its user base grows, compounded by suspicious traffic spikes consistent with SMS pumping fraud. It configures Authsignal's channel-priority rules to route enrolled users to passkey or push verification first, falling back to WhatsApp OTP where supported, and only using SMS for the remaining users without another registered channel. Over successive months, SMS volume drops sharply as more customers complete passkey enrolment, while verification success rates hold steady since users are still offered a channel appropriate to their device.
- 1Channel-priority rules configured to favour passkeys and push
- 2WhatsApp OTP enabled as a mid-tier fallback
- 3SMS reserved for users with no other enrolled channel
Expected outcomes
- Lower recurring SMS spend
- Reduced exposure to SMS pumping fraud
- Improved authentication security for shifted traffic
- Maintained accessibility for users without smartphones
How CyberLane helps
CyberLane analyses current SMS OTP volume and spend, then advises on a channel-priority configuration that shifts traffic to lower-cost, more secure options while keeping accessibility for users who depend on SMS.
- SMS spend and traffic analysis
- Channel-priority rule design
- Passkey enrolment campaign plan
- Cost-savings tracking framework
CyberLane is independent and works on the decision rather than the deployment. Product-specific delivery is coordinated with the vendor or a qualified implementation partner.
Official vendor sources
Content is paraphrased independently by CyberLane from Authsignal's public use-case pages for evaluation purposes; it is not an Authsignal publication.
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