SMS payments, or “Pay by Text payments”, allow customers to pay for services or goods via a mobile phone text message. The customer typically receives a text prompting them to initiate payment via a website interface or additional text messaging. Almost any business that takes payments for goods or services can realize operational costs savings and an uptick in collected revenues by choosing to accept payments by text message.
Texting is the top activity performed on a smartphone (over 80% of Americans use text messaging), yet many billing organizations ignore texting as a paperless payment channel. Payment collection via text messaging is a great way to offer customers convenience as well reduce payment collection costs.
SMS payments are making the payments sphere increasingly simple and user friendly. The transportation realm in particular benefits from SMS payments, with services like Lyft and Uber allowing consumers to summon a ride and pay for it all from their phone.
Implementing SMS Payments For Transportation offers major benefits for customers AND businesses:
Benefits for the Customers:
- Text payment reminders are efficient and simply retrieved.
- Customers don’t need to remember any passwords or usernames like sites such as PayPal. Payments by text are very simple for customers.
- After the initial setup, there is no need to have a payment method on hand – it is already saved in our secure environment.
- Similarly, Customers will no longer be divulging sensitive information over the phone.
- No longer have to keep track of invoices sent via snail mail.
- It is secure, as no personal details or account details are released.
- The purchaser doesn’t have to enter their credit card or bank details, or even have a bank account.
- SMS Payments are quick and easy to use.
For the Business:
- The merchant can accept payments from any of the billions of mobile phones capable of texting worldwide.
- Easy to use
- Customers that would have otherwise not been reached.
- Instantly access a powerful payment tool with your customer’s cell phone number (information most likely on file).
- Merchants can receive payments from customers without a bank account or credit card.
- Improved customer satisfaction.
- Can build upon customer loyalty through SMS marketing messages, Discounts, Coupons, etc.