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Time-based OTP (TOTP)

Overview

A Time-based One-Time Password (TOTP) is a temporary authentication code generated using a shared secret key and the current time. Valid for only 30–60 seconds, TOTPs are widely used in multi-factor authentication for banking, fintech, and enterprise apps.Unlike SMS OTPs, TOTPs are generated on the user’s device via authenticator apps, making them resistant to SIM-swap attacks. Regulators recognize TOTPs as a secure method of strong customer authentication under PSD2 and NIST standards.

Regulators recognize TOTPs as a secure method of strong customer authentication under PSD2 and NIST standards. Banks, fintechs, and enterprises implement TOTPs to protect logins, transactions, and sensitive systems from account takeover and fraud.

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Related Terms

Multi-factor Authentication (MFA)

One-Time Password (OTP)

Passkeys (WebAuthn)

FAQ

How does TOTP work?

It uses a secret key and current timestamp to generate a code valid for a short window.

Why is it more secure than SMS OTP?

Codes are device-generated, preventing interception via SIM swap or phishing.

Who uses TOTP?

Banks, fintechs, enterprises, and digital services worldwide.

What’s the risk?

If the device is compromised, TOTPs can still be stolen.