Why Your Business Should Accept SMS Payments

Reach new customers by providing them with a very convenient means for buying things—SMS payments via text messaging.

If you haven’t heard of SMS payments by now, you must have heard of SMS marketing. The idea of marketing and selling to your customers via text messaging has been gaining steam in the last few years as it provides a direct line of communication to customers from a very convenient place—their smartphones. Advertising and marketing work well through email and social media, but none are as personal and customizable as SMS. 

Through companies like The Safe Harbor Group and Rhombus, you can not only communicate with your customers, but also give them deals and even collect payment from them through text messaging. Here is how SMS payments work:

  1. The purchaser sends an SMS message to a specific number that is linked to the mobile payment provider
  2. The SMS payment provider clears the transaction between the purchaser and the vendor; the purchaser pays no fees
  3. The cost of the purchase is either added to the purchaser’s monthly phone bill or deducted from a pre-paid balance
  4. The vendor pays the SMS payment provider monthly fees, percentage of transaction, and possibly a transaction fee

Customers experience many advantages by using SMS mobile payments, namely the following:

  • Extremely convenient since customers can pay with phone
  • Customers don’t need to enter bank or credit card details into a form
  • No need to create an account for logging in
  • Customers can communicate with sellers at their own leisure at any time since they take their phones with them everywhere

Businesses can also experience many advantages, including the following:

  • Gain access to over 2 billion people who have a smartphone with text messaging capability
  • No stress from chasing payments or chargebacks
  • Creating a loyalty program just for SMS marketing can create repeat customers
  • Customers are more likely to impulse buy when the purchasing process is very easy and convenient as well as the fact it can be done from anywhere at virtually any time
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Sally Wells
Contributing Editor

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