With digital banking becoming an everyday necessity, ensuring secure transactions is more important than ever. In a noteworthy move, Axis Bank has launched a new in-app Mobile OTP (One-Time Password) feature designed to provide a safer and more seamless banking experience for its customers. This development is not just about convenience—it’s about reinventing how we secure financial transactions in a world increasingly vulnerable to phishing scams and mobile frauds.
The introduction of in-app Mobile OTP is part of a larger trend among financial institutions striving to reduce their dependence on SMS-based OTPs, which are increasingly being targeted by fraudsters through SIM swap scams and phishing attacks. Over the years, many users have reported delays in receiving OTPs due to network issues or mobile signal problems. Worse, cybercriminals have found ways to intercept OTPs, even without direct access to the victim’s phone.
Axis Bank, being one of India’s leading private sector banks, has proactively addressed this concern by launching a Mobile OTP that is securely generated within the bank’s mobile banking app itself, thus eliminating the need for external delivery channels like SMS.
This new security feature makes OTP delivery more instant, encrypted, and reliable—especially for users with poor mobile network connectivity or those frequently targeted by cyber scams.
In traditional digital banking systems, an OTP is usually sent via SMS to a customer’s registered mobile number to authorize transactions such as fund transfers, bill payments, and password changes. This method, while widely used, has several vulnerabilities.
Axis Bank’s in-app Mobile OTP changes the game. Here’s how it works:
This approach is similar to the OTP experience offered by certain UPI apps like Google Pay, where the OTP is read automatically from within the app, making the entire process faster and more secure.
The in-app Mobile OTP isn’t just a technological upgrade—it brings real value to everyday users. For customers of Axis Bank, the new system offers several benefits:
This feature is especially beneficial for those living in rural areas or zones with limited mobile coverage, where SMS delays often disrupt digital banking transactions.
Fraudsters commonly use social engineering techniques to trick users into revealing OTPs received via SMS. Another common method is SIM swapping—where fraudsters convince telecom operators to issue a new SIM with the victim’s number and intercept OTPs sent via SMS.
By cutting the dependency on SMS entirely, Axis Bank’s in-app OTP solution closes this vulnerability gap. Since the OTP never leaves the app and isn’t transmitted over public networks, it cannot be intercepted, even if the attacker has access to the user’s phone number.
This change aligns with the growing call among security experts to modernize digital transaction authentication methods, making them safer and more user-friendly.
Axis Bank’s initiative follows a broader industry trend in both Indian and global banking. Several fintech platforms and digital-first banks have already adopted in-app authentication mechanisms, including push notifications, biometric verifications, and device-based tokens.
The Reserve Bank of India (RBI) has also been urging banks to implement multi-factor authentication and adopt more secure digital practices to protect users amid rising cybercrime incidents. With mobile banking frauds on the rise, banks must evolve their security frameworks without compromising user experience—and in-app OTP is a clear step in that direction.
If you’re an Axis Bank customer, here’s what to keep in mind:
This system will work only when you’re using the app on your registered device and mobile number, which adds another level of device-level authentication.
With the launch of in-app Mobile OTP, Axis Bank has demonstrated its commitment to staying ahead of fraudsters while enhancing customer experience. In a digital-first world, banking security can no longer rely solely on outdated systems. By integrating the OTP mechanism within the app itself, the bank ensures not only smoother transactions but also builds customer trust in mobile banking platforms.
This is a welcome move for India’s digitally-savvy yet cautious users, who are increasingly demanding faster, smarter, and safer banking solutions. As other banks take note, we can expect to see more financial institutions moving away from SMS-based OTPs and adopting in-app authentication as the new norm.