Time-based OTP (TOTP)

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.