Top 8 SMS OTP Providers in 2025 - Features, Pros&Cons, Price

Ever got stuck at an OTP verification? Then, you might have an idea of how frustrating it is. Your customers feel the same, and it happens when you use an unreliable OTP service provider.

If the OTP isn’t received at the right time, you might lose your customers. It ruins the user experience, and they might be unable to log in, complete payment, and do other tasks.

All you need is a flawless OTP service provider to make the verification process hassle-free. And we’re here to make that happen.

Let’s check out the details you should know and some excellent OTP service providers.

Part 1: What Does An OTP Service Provider Do?

OTP stands for One Time Password. It’s a 4-6 digit numeric key used for verification purposes. It is for one-time use and has an expiration time.

Businesses integrate OTP verification in their processes, such as logins, to prevent unauthorized access and ensure security. They use an OTP service provider that handles the verification process.

When the customer reaches a certain stage, an OTP is requested. The provider sends the OTP through SMS, email, or push notification and verifies what the user enters. Once the OTP is verified, access is granted.

It’s a part of two-factor and multi-factor authentication to make everything safer and more secure and prevent unauthorized access and fraudulent activities.

Part 2: What Features Should I Look for in An SMS OTP Provider?

Your OTP provider could destroy the user experience. Therefore, choosing the right one is crucial.

Here are some features and factors you must consider.

• Delivery Speed: Customers expect the OTP within a few seconds. They don’t want to hang around for several minutes. Thus, the delivery speed should be no more than 10 seconds; the lesser, the better.
• Delivery Rate: The delivery rate of the OTP service provider must be high. That way, all your customers receive the code if there is no technical issue on their side. Ideally, 100%, but practically, no less than 99%.
• Reach: Make sure the service provider covers most of the countries and regions in the world. It supports a wide range of service providers.
• Analytics: The detailed analytics of the service provider could be helpful in measuring results. Tracking at least the key metrics, such as delivery speed, delivery rate, failure, errors, etc., is excellent.
• Security Measures: Along with offering security to businesses, it should be secured with 2FA and other methods so that no one can hack your OTP account.
• Regulatory Compliance: The OTP service must comply with the regulations of the countries or states where you want to use their service. Otherwise, you will have to face the consequences.
• Integration: Seamless integration with websites, applications, and other platforms is needed. Check the compatible platforms before making any decision.
• Scalability: Think about the future. At this stage, you might not need an OTP service provider that could handle thousands of OTP requests per day. However, in the future, you will need it. Keep scalability in mind and choose the right provider.
• Customer Support: You will face tons of issues after integrating the service provider into your app or website. Therefore, the customer support should be quick and satisfactory to solve your issues timely.
• Transparent Pricing: Check the pricing of the services. There should be no hidden charges. Select a suitable platform according to your budget and the services you need.

Part 3: 8 Recommended SMS OTP Providers for Business Marketing in 2025

Here are the top 8 OTP service providers selected after our detailed research and comparison.

1 EngageLab

EngageLab is an all-in-one customer engagement platform. It offers an omni-channel customer messaging solution with the integration of all interaction channels, including SMS, WhatsApp, Email, WebPush, AppPush, etc.

The OTP service of EngageLab is what you need for your business security. It ticks all the boxes, including fast delivery, high delivery rate, legal compliance, customer support, global reach, and everything you need as an enterprise. Not only it

🔨 Key Features

Multi-channel Support: Sends OTP through SMS, WhatsApp, Voice, and Email

Customization: Allows customization of OTP length, type, validity period, and other variables to meet the business needs

Detailed Analytics: Offers access to visual reports to track important metrics, analyze user behavior, and improve strategies

Enhanced Security: Offers an anti-fraud mechanism, stops attacks, and offers multiple fault transfer channels. Ensures uninterrupted service and security

Regulatory Compliance: Complies with regulatory requirements of countries and regions

✅ What’s Good

• Integrates seamlessly into existing systems to get started quickly
• 24/7 technical support to resolve your issues quickly
• Offers optimized conversion rates and supports automatic resend option
• Suitable for all sizes of enterprises and businesses
• Automatically switches to backup channels in case of abnormalities
• 200+ countries and regions supported for global coverage

❎ What’s Bad

• Support is not available through calls; only message support

💰 Pricing

The pricing of EngageLab is pretty straightforward. It is based on the number of OTPs you send. The best part is you can enter a rough idea of the number of OTPs, method, and location, and it provides you with the cost.

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2 Telesign

Telesign is one of the top OTP service providers in the market. It makes the verification process simple, quick, and robust. It offers incredible functionality, a wide range of channels, fraud prevention, global coverage, and other things that businesses need.

🔨 Key Features

Seven Channels: Offers seven channels, including SMS, Silent Verify, Email, Push, WhatsApp, RCS, and Viber

Channel Fallback: If the preferred channel fails, it automatically selects another channel to reduce failure

Custom Routing: Allow routing rules to customers to cater to different markets and channels

Scalability: Connects new channels without the need for new vendors or API

✅ What’s Good

• The cost of OTP can be minimized through channel routing
• Quick and easy to set up. Just a few lines of code is needed
• Strong mobile network operator for successful delivery and wide coverage
• Advanced Machine Learning for risk recommendations

❎ What’s Bad

• Some regions and countries are not supported
• Delayed OTP delivery

💰 Pricing

You have to talk to the sales representative for a custom plan. They offer pricing and features according to the needs of the businesses.

3 Exotel

Exotel has a dedicated OTP service for businesses. It offers SMS and Voice OTP services with excellent uptime. Whether you want to secure login, password resets, transactions, or any other process, it is an excellent solution.

It’s an extremely popular option in India and Southeast Asia.

🔨 Key Features

Reporting: Provides detailed reports on a daily basis to monitor the performance

Scaling: Ideal for larger enterprises; scaling isn’t’ an issue

Support: 24/7 phone, email, and Twitter support

Integration: Quite easy and quick to sign up. Hardly takes 30 minutes

✅ What’s Good

• Offers up to 99.94% uptime, which makes it a reliable option
• High deliverability and low latency
• Deliver OTPs to the customer within 8 seconds

❎ What’s Bad

• Global reach isn’t possible
• Lacks customization features
• Needs improvements

💰 Pricing

They offer three plans, including Dabbler, Believer, and Influence. The price ranges from INR 9,999 to INR 49,499. The lowest plan offers 5,000 credits that are valid for 5 months.

Custom plans for enterprises are also available.

4 Vonage

Vonage offers Verify API to validate customers. It’s their patented 2FA technology to make processes more secure. Not only does it authenticate users, but it also prevents frauds and scams through its Fraud Defender. To minimize the failure, it automatically sends PIN codes via voice (TTS).

🔨 Key Features

Customization: Allows customer to select the failover sequence for seamless verification

Fraud Prevention: Dedicated fraud detection mechanism to protect businesses

Flexible Pricing: You need to pay only for the successful OTPs

Global Reach: Offers TTS in multiple languages and optimizes routing for fast delivery in all regions

✅ What’s Good

• Tackles network congestion through routing
• Automatically blocks suspicious traffic
• SMS, Voice, WhatsApp, Email, and Silent authentication
• Protects businesses from scammers and fraudsters
• Custom message and voice templates

❎ What’s Bad

• Pretty expensive
• Complex user interface

💰 Pricing

The pricing is simple but expensive. It charges €0.05 per successful verification, which is a lot compared to other services.

5 Twilio

Twilio doesn’t need an introduction—it’s a worldwide trusted solution for customer engagement. It also offers its product Verify API for 2FA. No matter how large your business is, it handles a massive number of verifications and covers every corner of the world.

🔨 Key Features

Channels: SMS, WhatsApp, Voice, and Email with one API

Quick Integration: Integrate Verify API in no time and let it handle everything

ROI Calculator: Gives you a clear idea of what you can achieve with Verify API.

Fraud Guard: Offers 100% protection against SMS frauds

Regulation Compliance: Complaint with PII-less, HIPAA, SOC 2 Type 2

✅ What’s Good

• 200+ regions and countries
• Provides actionable insights into regions and channels
• Automatically translates the template into 42 languages
• Unlimited scalability

❎ What’s Bad

• Expensive
• Difficult learning curve

💰 Pricing

The base price is $0.05 per successful verification plus the standard channel fee. You can also request custom pricing for your business.

6 MSG91

MSG91’s OTP service is what you need to make your business secure and enhance user experience. It improves security and builds customers’ trust through a reliable and fast two-factor authentication. It has been the choice of renowned brands for several years.

🔨 Key Features

Multi-channel: Supports multi-channel OTP, including SMS, Email, Voice, and WhatsApp. Ensures higher conversion

Security: Offers built-in security against hacking, fraudulent activities, etc. Automatically stops risky logins. Makes your business more secure and reliable

Blocking: Allows temporary and permanent blocking of IP addresses to ensure security

Global Coverage: Works in 190+ countries and offers quick delivery on a wide range of networks

✅ What’s Good

• Makes customers/users lives simpler with quick OTP verification
• User-friendly and clean interface
• Quick delivery and verification
• You can add templates according to business needs
• Detailed logs and reports for analysis

❎ What’s Bad

• It’s quite expensive
• Lack of functionality
• Users have reported various issues, such as high failure and support problems

💰 Pricing

The cost of sending an OTP via SMS from the US to the US is $0.0063. It is a simple pricing structure, and you can also get personalized pricing according to the business needs.

7 Authkey

Authkey’s two-factor authentication (2FA) is a robust solution to protect your online business presence. It builds trust among customers with on-time OTP verification and prevents phishing, attacks, social engineering, etc. It can be used for different industries, including healthcare, banking, social media, education, government, and retail.

🔨 Key Features

Three Channels: SMS, Email, and Voice 2FA

Ultimate Protection: Offers protection against stolen passwords, hacking, key logging, code attacks, and brute-force attacks

Delivery Speed: The delivery speed of the API is incredible

✅ What’s Good

• Supports 220+ carriers and 200+ countries
• On-time delivery even if there are too many messages
• Developer-friendly API and enough resources to set up quickly

❎ What’s Bad

• Lacks functionality

💰 Pricing

You pay as you go. The pricing of SMS verification depends on the region. For the US and Canada, it’s €0.0372 per SMS.

8 Plivo

Plivo can help you verify new users and ensure their authenticity with the help of OTP. It is an incredible OTP service provider with a conversion rate of 95%. And not only is it up to the mark but also affordable. It can integrate into your business in minimal time, which is 90% less than its competitors.

🔨 Key Features

Channels: SMS, Voice, WhatsApp

Compliance: It’s compliant with GDPR, HIPAA, AICPA SOC, and PCI DSS. It bypasses your regulatory paperwork.

Fraud Shield: Built-in fraud solution saves money without extra costs

Customization: Customized OTP solution according to your business

✅ What’s Good

• Offers multiple options for support, including Slack and phone calls
• Low cost per verification
• Works in 150+ countries
• Transparent pricing
• Supports multiple languages

❎ What’s Bad

• No email OTP at this stage

💰 Pricing

The pricing is quite transparent. For the US, you need to pay $0.0055 per SMS verification. It’s quite affordable compared to other service providers.

Part 4: Choose Engagelab OTP Service Provider - Secure Your Customers & Boost Your Business

EngageLab makes the lives of business owners and marketers a lot easier with its all-in-one OTP service. It offers multiple channels and global coverage to reach a wider audience and bring real customers on board. Be it login verification, registration, transaction, or any other stage, it makes it completely secure through two-factor authentication, which is extremely fast and secure.

It is a robust solution for enterprises and quite simple to integrate with just 2 APIs. It optimizes your conversions through multiple channels and ensures timely delivery of OTPs to customers. Businesses can target different regions, customize strategies, and make decisions based on data. It’s legally compliant and secure.

Sign up today and convert more customers while ensuring security.

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Conclusion

OTP service providers are needed for customer authentication, security, fraud detection, and other purposes. But if you choose the wrong service provider, it will annoy your customers. While choosing an OTP service provider, consider the factors we have shared to evaluate the performance. We have shared the top 8 OTP service providers in the market along with their features, pros & cons, and other details to make your selection easier. If you want to save time, select EngageLab and enjoy a seamless and fast authentication process without any hassle.