SMS or Pay-by-Text is a medium for payment for services or goods through a smartphone text message. The client or customer generally gets a text that prompts them to initiate payment through a website interface or any text messaging. Today, businesses in different domains can use an SMS payment solution and save a lot of operational costs. It also increases collected revenues when you decide to accept payments via text messages.
SMS payments allow you to deliver messages or initiate interactions by SMS, messaging apps, or even QR code. Thus, you can communicate with your customers across various channels to optimise response. Moreover, you can build automated communication workflows and connect with customers before they default or a payment failure arises.
How Does an SMS Payment Solution Work?
Text-to-Pay solutions enable customers to opt-in to get text messages that contain information. They can opt-in to either get pay-by-text messages or solely alerts of late payment or bill payment. Customers can also opt-in to receive texts related to their accounts. When current charges become due, text messages are dispatched to every customer who has opted into the payment channel.
The business can customise workflow and rule sets. Clients can also pay an invoice through text interaction on their phones. In a few cases, they can be redirected to a secure payment page for entering the needed data. If they have a payment account linked with their Text-to-Pay account, payment can be made via securely stored payment information. Both the business and the customers get a receipt notification.
Thus, it leads customers to appreciate the 10-second payment convenience. The business benefits from lesser delinquencies and shortened outstanding payment days.
Some Features of a Good SMS Payment Solution
Today, you can find various solutions that help in cutting down costs. To discover a good solution, you must analyse its capabilities. Here are some of the features of a reliable SMS payments solution.
- Correction of failed direct debits and credit card payment failures.
- Option to enable auto-negotiation and part payments.
- Automation of collection processes leads to a reduction in manual collections.
- An option for customers to interact through their preferred channels at a time that’s ideal for them.
- Support of self-service through dynamically personalised NanoSites. As a result, you can take full or part payments or negotiate terms without any agent.
Should You Opt for an SMS Payment Solution for Your Business?
The ability to take payments by text provides potential as long as the benefits are more than the costs. It will be helpful to note that the features of different solutions differ considerably. So, you must compare service packages before arriving at a decision. For example, one company can find much value in the additional features or capabilities to target lists. At the same time, another may direct its efforts on minimising telephone orders.
The services you prefer depend on your company or business model. As text messaging gives a precise path to your customers’ hands, it’s worthwhile to determine the perfect balance to engage, connect and prompt your clients to make payment through text message.
An SMS payment solution is easy to use. It allows merchants to accept payments from anyone among the millions of smartphones with the ability to text worldwide. There’s no need for a bank account or a credit card to receive payments from your customers.