Infobip > Case Studies > Bukalapak: Enhancing Client Security and Conversion Rates with Two-Factor Authentication

Bukalapak: Enhancing Client Security and Conversion Rates with Two-Factor Authentication

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Technology Category
  • Cybersecurity & Privacy - Identity & Authentication Management
  • Platform as a Service (PaaS) - Application Development Platforms
Applicable Industries
  • National Security & Defense
  • Transportation
Applicable Functions
  • Logistics & Transportation
Use Cases
  • Last Mile Delivery
  • Tamper Detection
Services
  • System Integration
About The Customer
Bukalapak is one of the largest online marketplaces and ecommerce companies in Indonesia. The company has expanded into many areas beyond its origins, but still continues to prioritize empowering traditional mom-and-pop stores, or warungs, in the age of ecommerce. Security is a major concern for Bukalapak, as it is for any ecommerce business. They needed a solution that would provide the highest level of security for their users, while also improving conversion rates and positively impacting revenue and profits.
The Challenge
Bukalapak, one of the largest online marketplaces and ecommerce companies in Indonesia, was grappling with security breaches and low conversion rates. As an ecommerce business, ensuring the highest level of security for their users was paramount. This involved sending one-time PINs (OTP) for transactions, logins, and registrations, as well as for any account detail changes such as email or phone numbers. However, low OTP delivery rates were causing bottlenecks in the customer journey, preventing users from registering to the platform and completing transactions, thereby negatively impacting revenue and profits. Bukalapak had set a target success threshold for logins, checkouts, and transactions, which required OTP delivery to be fast, reliable, and cost-effective.
The Solution
To address these challenges, Bukalapak integrated two-factor authentication SMS into their in-house developed system using Infobip’s API. This allowed them to send OTPs for new user registrations and transactions, and also enabled them to send high-priority marketing messages for brand promotions and big events using SMS. The key features for Bukalapak were platform reliability and the message delivery success rate. Infobip’s platform offered monitoring features that enabled clients to track performance in real time. Bukalapak utilized these features to closely monitor delivery success rates and quickly identify any issues.
Operational Impact
  • The integration of Infobip's two-factor authentication SMS into Bukalapak's system resulted in a 4-5% increase in delivery rates, putting them over the targeted delivery rate success threshold. This had a positive impact on Bukalapak, with improved conversion rates and a sharp decline in account takeovers. The platform's monitoring features allowed for fast resolution of issues, further enhancing the user experience. These improvements combined to positively impact Bukalapak’s revenue and profit, as OTP issues were practically eliminated, which was a critical step in their business process. Bukalapak was also very satisfied with the professional relationship developed with Infobip, with fast response times from the account management team helping to quickly resolve any issues encountered.
Quantitative Benefit
  • 4-5% increase in delivery rates
  • Improved conversion rates
  • Sharp decline in account takeovers

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