Abstract: A communication system and method are configured for mutual authentication and secure channel establishment between two parties. In one embodiment a first party generates a first one-time password and sends it to a second party. The second party authenticates the first party by generating a one-time password using the same algorithm, secrets and parameters and matching it with the received first one-time password. If the received first one-time password matches with a generated password, the second party generates a consecutive one-time password, and establishes a secure channel to the first party using the consecutive one-time password. The first party generates a consecutive one-time password and authenticates the second party by successfully communicating with the second party using the secure channel.

Abstract: A system and a method are disclosed that includes a first party with a terminal and a one-time password token, one or more second parties, each with a host application system and a service provider authentication server, and a third party with a host application system and a master authentication server. The first party uses a single one-time password token with a single personal identification number (PIN) to access the one or more second parties. A third party issues the token to the first party and synchronizes token secrets and parameters with the one or more second parties. This offloads token management from the second parties and allows the second parties to directly authenticate the first party. The authentication of the first party by the second party does not involve the third party.