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Finance & Banking vocabulary · Fintech & Digital Banking

OTP

Meaning in finance & banking, with examples

abbreviationCommon term

In finance & banking, OTP means: Short for one-time password: a code that is valid for a single login or transaction and only for a short time, usually sent by text message or created in an app.

In Turkish: tek kullanımlık şifre, doğrulama kodu, SMS şifresi

How it is used

Said letter by letter. Customers receive, enter or request a new OTP when they log in, add a beneficiary or pay online. Fraudsters often try to trick people into sharing their OTP on the phone, so banks keep repeating that staff will never ask for it. Many banks now prefer in-app approval to SMS codes.

Example sentences

  1. Enter the OTP we sent to your phone to confirm the payment.

  2. The customer shared her OTP with a caller who claimed to be from the bank.

Common collocations

  • enter the OTP
  • SMS OTP
  • OTP expired
  • resend the OTP
  • two-factor authenticationA way of checking identity that asks for two different kinds of proof, such as a password plus a code sent to your phone, before giving access.
  • 3-D SecureA security step for online card payments in which the card issuer asks the cardholder to confirm the purchase, usually with a one-time code or in the banking app.
  • phishingA trick in which criminals send fake emails, messages or websites that seem to come from a bank, in order to steal passwords, card details or codes.
  • fraudDeceiving someone to get money or another advantage illegally, such as using stolen card details or opening an account with a fake identity.
  • online bankingManaging a bank account through the bank's website on a computer, including payments, transfers and statements.

More terms: Fintech & Digital Banking

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This page explains English vocabulary for learners. It is not financial advice.