In the fast-evolving world of telecommunications, businesses are continuously searching for more efficient, cost-effective, and secure ways to authenticate users. One such innovation gaining traction is flash call authentication—a method that leverages missed calls for verification instead of traditional SMS OTPs. This shift presents a significant opportunity for VoIP service providers to tap into a growing market while offering businesses an alternative to expensive messaging services.
With increasing digital transactions, rising concerns over SMS fraud, and enterprises looking to reduce operational costs, flash calls are becoming a preferred authentication method. In this article, we’ll explore how flash calls work, why they are gaining popularity, and the key opportunities they offer for VoIP service providers looking to expand their business.
What Are Flash Calls?
Flash calls are a growing trend in authentication services, where an automated call is used to verify a user’s identity instead of traditional SMS one-time passwords (OTPs). In this process, a user initiates authentication, and instead of receiving a text message, they receive a missed call from a designated number. The last few digits of this number serve as the verification code.
This method is increasingly being adopted by companies looking for more cost-effective, secure, and user-friendly authentication solutions. As a result, flash calls are becoming an essential part of the VoIP industry, creating new revenue streams and business opportunities for VoIP service providers.
Why Are Flash Calls Gaining Popularity?
1. Cost-Effectiveness
Compared to SMS OTPs, flash calls are significantly cheaper. By adopting flash call authentication instead of relying on costly SMS termination, businesses can streamline their verification processes while cutting operational costs.
2. Security & Fraud Prevention
Flash calls reduce the risk of SIM swap fraud and phishing attacks. Unlike SMS OTPs, which can be intercepted or spoofed, flash call authentication links the verification process directly to the user’s phone number.
3. Improved User Experience
Flash calls are faster and more seamless than SMS-based authentication. Users don’t need to manually enter an OTP; they just need to read the last digits of an incoming call’s number.
4. Growth in Mobile Authentication Market
With increasing digital transactions, banking, e-commerce, and other industries requiring secure authentication, the demand for flash call verification services is on the rise.
Opportunities for VoIP Service Providers
1. Monetizing Flash Call Termination
VoIP providers can route and terminate flash calls for enterprises and authentication platforms. This presents a revenue opportunity, especially for providers with strong interconnect agreements and access to direct routes.
2. Partnering with Enterprises & OTT Platforms
Companies offering authentication services—such as fintech firms, ride-hailing apps, and social media platforms—are looking for cost-effective and reliable flash call solutions. VoIP providers can establish direct partnerships to offer high-quality termination services.
3. Offering Flash Call Solutions as a Service
VoIP businesses can create APIs and software solutions that integrate flash call authentication into enterprise applications, similar to how Twilio and Vonage offer SMS authentication APIs.
4. Expanding into Emerging Markets
Many developing countries experience high SMS fraud rates and expensive messaging costs. VoIP providers can capitalize on these markets by providing flash call authentication as an alternative to SMS OTPs.
5. Enhancing Carrier Relations and A2P Traffic Handling
As flash calls generate more traffic between VoIP carriers and telecom operators, service providers can leverage this trend to improve business relationships, negotiate better termination rates, and increase overall A2P (Application-to-Person) traffic volume.
6. Providing Hybrid Authentication Services
Flash calls can be bundled with traditional VoIP services such as SIP trunking, number hosting, and enterprise telephony, creating a comprehensive authentication-as-a-service solution for businesses.
Challenges to Consider
- Regulatory Restrictions: Some telecom regulators may impose restrictions on flash calls, similar to A2P SMS regulations.
- Number Blocking by Operators: Mobile carriers may block flash call numbers to protect their A2P SMS revenues.
- Network Latency & Call Completion Issues: Ensuring high call completion rates and quick call setup times is critical for maintaining service quality.
Conclusion
Flash calls are transforming the way businesses authenticate users, and VoIP service providers have a unique opportunity to capitalize on this growing trend. By offering flash call termination, partnering with enterprises, and developing innovative authentication solutions, VoIP businesses can unlock new revenue streams and strengthen their market position.
As the demand for secure and cost-effective authentication continues to grow, now is the perfect time for VoIP providers to explore flash call opportunities and establish themselves as key players in this evolving space.
Kolmisoft does not currently offer billing for flash calls. However, we are closely monitoring market trends and client needs. If demand for this functionality increases, we will consider implementing it in future updates. Kolmisoft clients with a Support System login can cast their vote for the Flash Call billing functionality in the following development request: [Flash Calls] Bill all call attempts on certain trunks, even failed calls (#573).