What Can SMS Payments Do for Customers?
SMS payments aren’t a new concept. However, they have proven to be popular among customers. Being able to make payments for goods through a text message offers a level of convenience that customers enjoy. Safe, easy, and simple, receiving payments by SMS is another useful addition to any company’s payment armory.
Why Do Customers Appreciate SMS Payments?
One reason why customers enjoy making payments via SMS is because they do not need to remember any passwords. They do not even need to have their bank details or credit card information on hand. In fact, there’s not even any need for SMS users to have access to any form of bank account. They can simply make payments through a cell phone bill. It’s no wonder that SMS payments have proven to be very popular in emerging economies. Customers simply text an SMS number to complete their purchases. The process is speedy – it usually takes under a minute. There are also no worries about identity theft or anyone stealing their credit card or bank details.
What Is an SMS Payment?
There are three methods of accessing SMS payments.
- First, customers can use a website paired with a code. The site sends customers to a specific web page. They are also given a specific code. They will see a text number on the screen. They send the code they received to that text number. Then, they will receive another text. This text will allow them to access their contents. Alternatively, it will confirm their purchases are now paid.
- The second option is to enter a cell phone number on the website. The number will then receive a text from the payment provider containing a code. The user will then use the code to access his or her online content.
- The third option is via a text sent directly to the user. This is a less common option. A user will send his or her text to the advertised number and receive his or her purchase in return. Usually, this option is only used by charities.
Whatever type of SMS payment the purchaser uses, he or she sends a premium rate SMS. This allows the company to receive a payment.
How Does an SMS Payment Work?
A customer makes a payment using a premium rate SMS. This includes the purchase cost. The money will then come from the customer’s prepaid mobile balance. Alternatively, he or she will see the money later on his or her cell phone’s monthly bill.
Once the customer has paid the bill, the mobile operator will receive its share of the premium rate SMS. The payment processing company receives the remainder of the money. This is the company that is operating the SMS payment gateway used by the business from which the customer bought. The payment provider of the SMS payment service takes its own financial share. The rest is then passed to the merchant that made the sale.
Only the customer’s cell phone operator will receive the details and information pertaining to him or her. The merchant will not see any of the customer’s financial data. This makes payment via SMS secure, easy, and safe.
BillingTree’s SMS Payment Solution
BillingTree is leading the way in offering SMS payments. With a cutting-edge solution in place, consumers and clients can both benefit. It is easy to opt into compliant communications, reminders, and notifications from agencies that work in the collections sector. BillingTree has an efficient SMS solution that offers a wide range of clients excellent functionality. Financial institutions, agencies, and healthcare providers can all benefit from BillingTree’s SMS solution. Not only can the solution facilitate customer communications, but it can also receive customer payments via text.
BillingTree offers its SMS payment solution either as a standalone service or as part of its Payrazr or Careview portals. This payment channel can garner an 80 percent response rate from the majority of consumers. This means that it is a solution worth considering.
For customers, the convenience is clear. They can make payments quickly and easily even if they have no bank account or credit card. They can also rest assured that their details are entirely secure and well-protected.
For organizations, there are numerous advantages. They can receive instant confirmation that a merchant has received a payment. Meanwhile, they can make savings on the cost of processing payments thanks to BillingTree’s cost-effective solution.
SMS payments solutions are a useful addition to any organization’s payment armory. By giving customers another option to make payments, companies can increase their revenue. A greater range of payment solutions increases the chance of receiving payments on time. With this in mind, it is possible to boost cash flow and streamline processes. BillingTree’s cutting-edge system is fully compliant, and that makes it the perfect choice for all kinds of organizations.