Kakao: Increasing new user conversion rate to more than 90% with reliable one-time PIN delivery

Challenge

As part of Kakao’s registration process, new users are required to verify their identity using two-factor authentication (2FA). Initially, Kakao used a domestic SMS provider to deliver one-time PINs (OTPs). Their new customers were experiencing delayed PIN deliveries, or even completely unsuccessful ones.

The OTP delivery issues negatively impacted Kakao’s new customers due to many cases of poor connection and frequent technical issue. The company then decided to find a reliable global SMS provider – one that could also provide real-time delivery reporting to ensure continuous quality of service.

Solution

Offering guaranteed global coverage and high-quality messages, Infobip was brought onboard by Kakao to improve their OTP delivery rates with our 2FA solution.

In addition to easily integrating the API with Kakao’s existing platform, the company was now able to benefit from Infobip’s in-house developed and maintained intelligent routing. Intelligent routing provided them with the ability 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 is the 24/7 support system and local presence in Korea that ensures Kakao receives dedicated service for troubleshooting purposes and technical training.

Result

Kakao experienced an improved quality of service almost instantly after implementation. The delivery time of its OTPs decreased from four hours to just 10 minutes during the onboarding process.

This has resulted in a high conversion rate of more than 90% and far greater recorded levels of customer satisfaction.

Infobip’s 2FA SMS solution has enabled Kakao to overcome its main pain points of message quality and support, by successfully 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 various transactional messages and important notifications to their user base.