Bukalapak
2023
App Development
Product Design
Project Background
In the middle of 2021, Bukalapak launched passwordless login and registration to support sales channel initiatives, anticipating an influx of non-Bukalapak users onto our platform. We needed a straightforward way for them to register, considering that 75% of newly registered users already had confirmed phone numbers. We aimed to simplify the registration process by introducing RUPN (Register with phone number), eliminating the need for users to create and remember passwords.
Despite the challenges encountered during the implementation of passwordless registration and login, the outcomes surpassed our expectations. The metrics we had set were exceeded immensely, and the new login and registration system was well received by our users. Nonetheless, there are still areas for improvement, with one major concern being the rising costs associated with OTP (One-Time Password) usage.
Several months after the launch of our passwordless initiative, the cost of OTPs increased significantly, nearly doubling compared to pre-initiative levels.
The problem
Core Authentication & Communication are contributed 75% of Marketplace & Mitra Product Operation Cost through its SMS Bulk Expense
Core Authentication & Communication are contributed 75% of Marketplace & Mitra Product Operation Cost through its SMS Bulk Expense. 90% of SMS Cost comes from OTP when 3rd highest OTP Cost comes from Registration and login flow in Marketplace with average more than 100 Mio OTP SMS cost per month.
We initiated the project by conducting research to gain a deeper understanding of our users' behavior and to validate some of our previous inquiries. After interviewing several users about their habits, we discovered that our users typically log in and log out of their accounts using our app. The insights gathered from these interviews were subsequently utilized to inform our decision-making process in designing our OTP page.
1
They fear that if they lose their cell phone, someone else may find it and gain access to their account, which is linked to e-wallets, credit cards, and other sensitive information.
2
We discovered that many large sellers often hire one or two employees to assist in managing their "lapak." Sometimes, these employees need to make purchases for their personal needs. As a result, they have to log out of the app and then log back in using their personal accounts.
Design Goals
As depicted in the image above, SMS is more prominent than WhatsApp on our current verification option page design. However, despite SMS being the easiest way to send an OTP, it is also the most expensive method. Rearranging our current verification option page will assist us in achieving our objective, which is to reduce OTP costs by approximately IDR x,x billion per year.
Opportuniy
We also discovered that in our current design, users only have two verification options available: sending their OTP through SMS and WhatsApp. However, we actually have five verification options, including:
1
OTP SMS
2
OTP WhatsApp
3
OTP Email
4
PIN
5
Password
Based on the available verification options, I have conducted an analysis to assess the costs associated with different OTP delivery channels, ranking them from highest to lowest cost.
Cost Comparison
After arranging the OTP costs from the least to the most expensive in a diagram, I began crafting the registration and login flows. This effort was motivated by the imperative to achieve a nuanced equilibrium between user convenience and optimizing business advantages, emphasizing the reduction of OTP SMS usage.
Verification Flow
The Design
After several iterations and a review session with all stakeholders, we have reached a consensus to proceed with this design. The design and flow will be dynamic for users depending on the verification options available to them. However, we also provide fallback alternatives for every option we offer. Users with a PIN will use it to log in, while those without a PIN but with a password will use the password. If they lack both PIN and password, we'll send an OTP through WhatsApp. For users without a PIN, password, or WhatsApp, we'll send the OTP through SMS.
Image: OTP Page
Result and Impact
Through the implementation of this solution, we achieved significant cost savings, reducing OTP expenditures by XX million per month. Moreover, our efforts led to a substantial increase in the creation rate of personal identification numbers (PINs), with a remarkable surge of 56%. Consequently, a majority of users within the Bukalapak ecosystem now possess a PIN, indicating a higher level of security and user engagement. Notably, this shift has translated into a notable behavioral change, with a majority of users opting for PIN-based authentication over SMS-based authentication during login processes. This transition not only signifies a more streamlined and cost-effective authentication method but also underscores the successful adoption and integration of innovative UX solutions within our platform.