2022 MULTI-FACTOR AUTHENTICATION TO GENERATE US$27 BILLION FOR OPERATORS - JUNIPER RESEARCH

KUALA LUMPUR, May 10 (Bernama) -- A new study by Juniper Research has found operators will generate US$27 billion from the termination of SMS messages related to multi-factor authentication in 2022; an increase from US$25 billion in 2021. (US$1 = RM4.382)

The research predicts this five per cent growth will be driven by increased pressure on digital service providers to offer secure authentication that reduces risk of data breaches and protects user identity. 

According to a statement, multi-factor authentication combines multiple credentials to verify a user or transaction. This includes sending an SMS that contains a one‑time password or code to a user’s unique phone number.

The new research, Mobile Authentication: Future Strategies & Market Forecasts 2022-2027, urges operators to capitalise on the growth in demand for multi-factor authentication SMS traffic, by leveraging firewalls to monitor and identify SMS traffic specifically used for multi-factor authentication. 

In turn, operators will then be able to charge a premium on this traffic and further increase business messaging revenue.

The research predicts there will be over 1.7 trillion multi-factor authentication messages delivered globally in 2022; representing 60 per cent of total SMS business messaging traffic. 

Operators must develop machine learning algorithms that automate the monitoring of this vast amount of traffic to efficiently identify messages that can be charged at a premium.

To manage this increase in demand for multi-factor authentication SMS messages, the report urges operators to partner with CPaaS (Communications Platform-as-a-Service) platforms.

These platforms offer the necessary user interface to SMEs to manage authentication processes and subsequent traffic from which operators will attain additional SMS business messaging revenue.

Juniper Research provides research and analytical services to the global hi-tech communications sector, providing consultancy, analyst reports and industry commentary.

-- BERNAMA