Software tokens are two factor authentication applications that can be installed and run from a wide variety of devices, including but not limited to personal computers, mobile phones, PDAs, and smartphones. In contrast to hardware tokens, software tokens do not require dedicated hardware, ongoing user maintenance or have a limited life span. After the obsolescence of hardware tokens, they have to be discarded and new ones have to be issued. By contrast, software tokens are a virtual product using existing hardware, thus minimizing negative environmental externalities.

The software authentication methods include:

• Event-based One-Time Password (OTP)
• Security Question
• Challenge-Response
• Transaction Data Signing (TDS)
• Mutual Authentication
• Out-of-Band Authentication

• No application maintenance required
• No specialized hardware or shipping costs
• Unparalleled device support: Designed to work on almost all phones on the market today, with constant updates as new mobile models are launched