Dev Tools · 1h ago
SMS OTP costs more than Twilio's bill: hidden fees in user drop-off and fraud
SMS OTP costs $0.03–$0.08 per message, adding $300–$800/month for 10,000 MAU. User drop-off at the OTP step is significant due to context switching and code entry. Toll fraud from bots can double bills without detection.
Meridian48 take
The article pitches a messenger-based alternative, but the real insight is that SMS OTP's hidden costs—conversion loss and fraud—often outweigh the direct per-message fees.
sms-otp-costsauthentication-fraud