Infobip Case Studies Kakao: Enhancing User Conversion Rate with Reliable OTP Delivery

Edit This Case Study Record

	Kakao: Enhancing User Conversion Rate with Reliable OTP Delivery Infobip

Kakao: Enhancing User Conversion Rate with Reliable OTP Delivery

Infobip

Technology Category	Cybersecurity & Privacy - Identity & Authentication Management Platform as a Service (PaaS) - Application Development Platforms
Applicable Industries	Telecommunications Transportation
Applicable Functions	Logistics & Transportation Quality Assurance
Use Cases	Last Mile Delivery Visual Quality Detection
Services	Testing & Certification Training
Challenge	Kakao, the company behind the popular South Korean instant messaging app, KakaoTalk, faced a significant challenge with its new user registration process. As part of the registration, new users were required to verify their identity using two-factor authentication (2FA), which involved the delivery of one-time PINs (OTPs) via SMS. However, the domestic SMS provider that Kakao initially used for OTP delivery was unreliable, leading to delayed or completely unsuccessful PIN deliveries. This issue negatively impacted Kakao’s new customers due to poor connection and frequent technical issues. The company was in dire need of a reliable global SMS provider that could not only ensure the successful delivery of OTPs but also provide real-time delivery reporting to maintain a high quality of service. Read More
About Customer	Kakao Corp is the company behind KakaoTalk, a free mobile instant messaging app based in South Korea. The platform boasts more than 43 million active users in the region, accounting for 97% of all smartphone users. Globally, Kakao provides instant messaging services to over 50 million people across 230 countries. The company's primary goal is to offer global communication services that enhance daily connections quickly and simply through its mobile lifestyle platform. Read More
Solution	To address the OTP delivery issues, Kakao integrated Infobip’s two-factor SMS Authentication into their platform. Infobip offered guaranteed global coverage and high-quality messages, which were key to improving Kakao's OTP delivery rates. The integration of Infobip’s API with Kakao’s existing platform was seamless, and it allowed Kakao to benefit from Infobip’s intelligent routing. This feature enabled Kakao to quickly react to low delivery rates and adapt by searching for alternative, higher quality routes to achieve high delivery rates. An integral part of Infobip’s solution was its 24/7 support system and local presence in Korea, which ensured that Kakao received dedicated service for troubleshooting and technical training. Read More Log in to view content
Contents

Technology Category

Cybersecurity & Privacy - Identity & Authentication Management

Platform as a Service (PaaS) - Application Development Platforms

Applicable Industries

Telecommunications

Transportation

Applicable Functions

Logistics & Transportation

Quality Assurance

Use Cases

Last Mile Delivery

Visual Quality Detection

Services

Testing & Certification

Training

Challenge

Kakao, the company behind the popular South Korean instant messaging app, KakaoTalk, faced a significant challenge with its new user registration process. As part of the registration, new users were required to verify their identity using two-factor authentication (2FA), which involved the delivery of one-time PINs (OTPs) via SMS. However, the domestic SMS provider that Kakao initially used for OTP delivery was unreliable, leading to delayed or completely unsuccessful PIN deliveries. This issue negatively impacted Kakao’s new customers due to poor connection and frequent technical issues. The company was in dire need of a reliable global SMS provider that could not only ensure the successful delivery of OTPs but also provide real-time delivery reporting to maintain a high quality of service.

About Customer

Kakao Corp is the company behind KakaoTalk, a free mobile instant messaging app based in South Korea. The platform boasts more than 43 million active users in the region, accounting for 97% of all smartphone users. Globally, Kakao provides instant messaging services to over 50 million people across 230 countries. The company's primary goal is to offer global communication services that enhance daily connections quickly and simply through its mobile lifestyle platform.

Solution

To address the OTP delivery issues, Kakao integrated Infobip’s two-factor SMS Authentication into their platform. Infobip offered guaranteed global coverage and high-quality messages, which were key to improving Kakao's OTP delivery rates. The integration of Infobip’s API with Kakao’s existing platform was seamless, and it allowed Kakao to benefit from Infobip’s intelligent routing. This feature enabled Kakao to quickly react to low delivery rates and adapt by searching for alternative, higher quality routes to achieve high delivery rates. An integral part of Infobip’s solution was its 24/7 support system and local presence in Korea, which ensured that Kakao received dedicated service for troubleshooting and technical training.

Impact #1	The integration of Infobip’s two-factor SMS Authentication led to an immediate improvement in Kakao's quality of service. The delivery time of OTPs drastically reduced, which significantly enhanced the user onboarding process. This improvement led to a high conversion rate of more than 90% and increased levels of customer satisfaction. Infobip’s 2FA SMS solution enabled Kakao to overcome its main challenges of message quality and support by delivering high-quality messages and providing a dedicated support network. Following the successful implementation of SMS OTP delivery, Kakao decided to use SMS to deliver other transactional messages and important notifications to their user base.

Impact #1

The integration of Infobip’s two-factor SMS Authentication led to an immediate improvement in Kakao's quality of service. The delivery time of OTPs drastically reduced, which significantly enhanced the user onboarding process. This improvement led to a high conversion rate of more than 90% and increased levels of customer satisfaction. Infobip’s 2FA SMS solution enabled Kakao to overcome its main challenges of message quality and support by delivering high-quality messages and providing a dedicated support network. Following the successful implementation of SMS OTP delivery, Kakao decided to use SMS to deliver other transactional messages and important notifications to their user base.

Benefit #1	Increased new user conversion rate to more than 90%
Benefit #2	OTP delivery time decreased from four hours to just 10 minutes during the onboarding process
Benefit #3	Greater recorded levels of customer satisfaction

Benefit #1

Increased new user conversion rate to more than 90%

Benefit #2

OTP delivery time decreased from four hours to just 10 minutes during the onboarding process

Benefit #3

Greater recorded levels of customer satisfaction

Download PDF Version

Overview

Kakao: Enhancing User Conversion Rate with Reliable OTP Delivery

Operational Impact

Quantitative Benefit