Telegram has introduced a new feature that has sparked controversy. It offers users a free premium membership in exchange for allowing the instant messaging app to use their phone number as a relay for sending one-time SMS passwords to other users trying to log into the platform, raising concerns about potential privacy risks and exposure of personal information.

The feature, first spotted by the TGInfoEn Telegram channel (via reverse engineer AssembleDebug), is now rolling out in select countries for Telegram for Android users. If you agree to let Telegram use your number as an OTP relay, the company will send you a transferable code for Telegram Premium.

The terms of service for this peer-to-peer login program notes that the company will send a maximum of 150 OTP messages per month. Participating users, who may also incur local and international charges to their SMS usage, need to hit a particular quota before availing a complimentary subscription. From the viewpoint of the wallet, one can end up paying even more than what the cost for the value of membership via premium at Telegram turns out to be through phone billing.

Then there is a massive issue of privacy, which allows strangers to look up your number and use it for spam and fraud. Telegram allows users to hide their phone numbers from strangers, but using your number as a relay could allow them to look up your Telegram account.

The terms indicate that people participating in the program shall not hold Telegram liable for any damages and completely provide the company with all indemnities from claims related to peer-to-peer login.

You acknowledge and agree that Telegram shall bear no liability for any costs, expenses, damages, or any other adverse or otherwise unforeseen consequences that you may incur as a direct or indirect consequence of your present or past participation in the P2PL Program," they read.

Telegram warns users not to interact with anyone who receives an OTP code from their number, but there is no way to enforce that.

The company rolled out a subscription service two years ago with such features as transcription, exclusive stickers, reactions and other customizations. Telegram also brought in such features like Stories for its paid users. However, users who opt into the peer-to-peer login system have to think if it is worth giving out their phone number to strangers for saving some dollars.