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China's Leading Mobile Operators First To Commercially Launch New Fraud Reducing Password Service, After Receiving GSMA Open Gateway Certification

26/03/2024

GSMA welcomes CITIC Telecom, Huawei and ZTE as Channel Partners

26 March 2024, Beijing: China's three leading mobile operators - China Mobile, China Telecom and China Unicom - today announced the commercial launch of the One Time Password Application Programming Interface (API), after receiving GSMA Open Gateway certification.

The roll-out makes China the first country to bring the One Time Password (OTP) API to market and represents China's first commercial API launch since signing up to GSMA Open Gateway in June 2023.

Unveiled at MWC Barcelona 2023, the GSMA Open Gateway initiative is designed to accelerate the growth of digital services and apps by providing developers with universal access to operator networks.

Online fraud is one of the most pressing issues facing e-commerce globally, with China's Ministry of Public Security solving 391,000 cases of telecom and online fraud between January and November 2023. The GSMA, mobile operators and channel partners are focusing initial GSMA Open Gateway API launches on tackling online crime.

Developers can use the Open Gateway OTP API to improve the security of their mobile Apps and online services by delivering a one-time password via SMS, which end users can use to provide proof of possession of a phone number and verify their identity. The new service provides increased security over single-factor authentication and in card-not-present payment scenarios, helping companies increase consumer confidence and protect users from the risk of fraud.

Applications of the Open Gateway OTP API include:

Onboarding to digital service (banking, social media, gig economy, retail): SMS OTP is used to prove that the user is in possession of the mobile device associated with the mobile number used for onboarding. This increases confidence for future uses of the mobile number and reduces instances of fake accounts creation.

High-value transactions: in order to reduce payment fraud, the user may be asked to enter the OTP code sent to their registered mobile number.

Account management e.g. password reset: to protect against account takeover, sensitive account management actions can be protected by requesting a second factor authentication by the end-user.

The GSMA Open Gateway welcomes CITIC Telecom, Huawei and ZTE

CITIC Telecom, Huawei and ZTE have also become the latest Chinese companies to commit to the GSMA Open Gateway initiative. These partnerships will help to drive demand and uptake of GSMA Open Gateway APIs in China and support the initiative's go-to-market strategy which was announced at MWC Barcelona 2024.

Since its launch a year ago, 48 mobile operator groups have joined the GSMA Open Gateway, accounting for 240 mobile networks and 66% of global connections. Huawei and ZTE join a growing list of channel partners and cloud providers including AWS, Google Cloud, Infobip, Microsoft Azure, Nokia and Vonage, who have worked with mobile operators to launch 95 commercial APIs worldwide.

Mats Granryd, Director General of the GSMA, said: The launch of the One Time Password API in the world's largest mobile market demonstrates the commitment of China's leading operators in keeping the country's 1.28 billion mobile users safe from cybercriminals. As instances of online fraud continue to grow in both scope and scale globally, the GSMA Open Gateway is equipping developers with the tools they need to protect users in the digital space. We look forward to seeing the innovative new services brought to market with the initiative's continued growth.

Mr. Dickson Ip, Chief Technology Officer of CITIC Telecom International Holdings Limited, said: The GSMA Open Gateway initiative represents a revolutionary leap in mobile communication technology. By providing open and interoperable API gateway solutions, we are paving the way for the future of global mobile interconnection. Enterprises can effortlessly leverage the power of 5G mobile networks to drive innovation and unleash new business opportunities. After joining the GSMA Open Gateway initiative, CITIC Telecom will become an important partner and supporter of Open Gateway to connect enterprises and carriers, and to provide secure and stable commercial network API services to enterprise markets and developers.

Li Peng, Corporate Senior Vice President, President of ICT Sales & Service, Huawei, said: Huawei has always been a firm supporter of the GSMA Open Gateway initiative, and we are proud to become an Open Gateway channel partner. Huawei has developed inTouch Aggregator, an intelligent cloud communications service, leveraging our deep telecom expertise. This service aggregates global operators' network resources and makes them accessible to enterprises and developers through APIs, promoting network capability exposure from operators around the world. It will encourage exploration into 5G APIs such as Quality on Demand (QoD) and will drive a prosperous ecosystem.

James Zhang, SVP of ZTE, said: ZTE will join GSMA to actively explore the new digital ecosystem of Open Gateway, seeking to drive growth in both B2B and B2B2C markets by leveraging telecommunications industry.

- ENDS -

About GSMA

The GSMA is a global organisation unifying the mobile ecosystem to discover, develop and deliver innovation foundational to positive business environments and societal change. Our vision is to unlock the full power of connectivity so that people, industry, and society thrive. Representing mobile operators and organisations across the mobile ecosystem and adjacent industries, the GSMA delivers for its members across three broad pillars: Connectivity for Good, Industry Services and Solutions, and Outreach. This activity includes advancing policy, tackling today's biggest societal challenges, underpinning the technology and interoperability that make mo
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