June 2025 Summaries

PayFit, a leading cloud-based HR and payroll solutions provider, successfully reduced its multi-factor authentication (MFA) costs by approximately 35% by switching from Twilio to Prelude for SMS-based MFA delivery. This decision, driven by the need to maintain cost-effectiveness without sacrificing reliability, was made swiftly due to Prelude's compelling offer of clear value, solid functionality, and responsive support. The integration of Prelude's API was handled entirely in-house, led by Marc Falzon, Senior Software Engineer at PayFit, and was completed smoothly despite minor limitations, such as the absence of a native Auth0 integration at the time. Prelude's reliable service has required minimal ongoing attention, reinforcing PayFit's confidence in their choice, while the cost savings have been significant without compromising service quality. This case study highlights Prelude's ability to provide scalable, cost-efficient solutions for major companies like PayFit, emphasizing robust infrastructure, fast integration, and transparent pricing.

Prelude Solutions has introduced a new feature called Preferred Channel Routing, allowing users to control how One-Time Passwords (OTPs) are delivered through various channels such as SMS, WhatsApp, Telegram, Viber, and Voice. This feature enables users to specify their preferred channel via a simple API parameter, while Prelude manages fallback options based on real-time delivery conditions to maintain reliability. The service is accessible through both an API and a user-friendly dashboard, allowing users to set routing preferences, fallback strategies, and assess delivery success by channel. This approach not only optimizes the verification process for different contexts and user preferences but also aims to enhance conversion rates, reduce costs, and improve user experience by providing flexible and seamless verification options.

In 2026, the selection of the best SMS API for global messaging is crucial for businesses aiming to maintain seamless communication with users, particularly for sending time-sensitive information like one-time passwords (OTPs), alerts, and transactional messages. The report highlights top SMS API providers, including Twilio, MessageBird, Plivo, Sinch, Infobip, Vonage, Kaleyra, Telesign, and Telnyx, examining their strengths in global reach, fraud protection, delivery speed, and developer experience. Each provider offers unique features such as high deliverability, smart routing, and compliance with international regulations, enabling secure and efficient messaging across multiple channels and regions. The guide underscores the importance of choosing an API that aligns with specific business needs, emphasizing factors like speed, reliability, scalability, cost-effectiveness, and security, while also providing a strategic outlook on how these APIs can enhance the user experience in diverse industries such as fintech, eCommerce, SaaS, and more.

In 2026, OTP (One-Time Password) fraud extensively exploits the economics of verification flows, leading to significant financial losses for businesses through methods such as SMS pumping, IRSF, SIM swapping, and fake account creation. Attackers capitalize on vulnerabilities in telecom routing agreements, SMS termination fees, and weak authentication APIs without needing to breach infrastructure or crack encryption. This has led to an increase in global telecom fraud losses, reaching $41.82 billion in 2025. Despite the rise of sophisticated attacks, SMS OTP remains a resilient authentication signal due to its reach, speed, and reliability, backed by physical infrastructure and years of delivery logic iteration. However, modern fraud operations use AI and automation to bypass traditional OTP defenses, highlighting the need for fraud-resistant verification architectures that employ upstream risk detection and multi-layered security measures. As OTP systems become more integral to security and compliance, regulatory frameworks now demand robust fraud detection and identity verification practices, pushing businesses to adopt advanced OTP solutions for both protection and regulatory adherence.