Why we created (another) SMS OTP service

Does the world actually need another SMS OTP service? “SMS OTP is pretty simple, right? What novelty can you bring?” We totally get it and faced these questions when we started building Prelude. Here’s our answer.

Why build another OTP solution?

Before Prelude, we worked at Zenly (acquired by Snap Inc.), where we saw firsthand how SMS verification costs can spiral out of control. At Zenly, SMS verification was one of our biggest expenses, with up to 30% of the budget lost to fraud. Traditional providers just weren’t equipped to address this and gave us no transparency or support on why this was happening.

So after three years of navigating these challenges, studying fraud patterns, and wrangling telecom networks, we knew there had to be a better way.

We built Prelude to help founders and indie hackers like you onboard users with less headache and without letting fraud drain your budget—freeing you up to focus on what really matters: growth.

So, what is Prelude?

Prelude is a developer-friendly SMS verification API. It doesn’t just verify—it proactively cuts costs, tackles fraud, and shows real-time analytics to keep you fully informed.

Already, companies like BeReal and Bitstack have seen up to 75% in savings compared to their old providers and have achieved a 95% conversion rate. 📈

Here’s how:

🥷 Anti-Fraud Focus: We prevent budget leaks from fraud like SMS pumping and IRSF with real-time, AI-driven analysis—blocking fraud, not real users.

🧠 Smart Routing: Prelude chooses the best route from over 30 carriers and channels for optimal cost and conversion.

📊 Real-Time Analytics & Transparency: With live analytics, you see where every dollar goes and can make data-driven decisions confidently.

I'd love to know—what’s your go-to method for user verification? Do you rely on SMS or other channels? I'd love to hear your thoughts in the comments!

Oh, and we just launched Prelude on Product Hunt with a special offer. If you have a moment, I'd be thrilled if you could check it out and let me know what you think: https://www.producthunt.com/posts/prelude-verify