In 2019, eMarketer reported that user growth around mobile payments slowed down, though transaction volume surged. Pew Charitable Trusts also reported that lack of confidence in security over mobile payments, in addition to “established history of positive experiences with traditional cards,” were possible factors as to why mobile payment adoption rates haven’t met industry projections.
What a difference a year makes.
The pandemic continues to accelerate the adoption of mobile and contactless or touchless payment methods. According to Mastercard Contactless Consumer Polling, 51% of U.S. consumers are now using some form of contactless payment. Mastercard also predicts that “contactless is here to stay,” as approximately 74% of surveyed consumers claim they will continue to use contactless payments post-pandemic.
ISVs should consider offering various contactless and touchless payment options that their merchants can choose to implement to stay on top of this trend. An up-and-coming payment channel that vendors should look into is SMS payments or text to pay.
SMS Payment Solutions Give Small Businesses An Edge
Accepting mobile payments via SMS can take the friction out of the payment experience, as they are quick, convenient, and efficient.
According to EZTexting, 90% of all text messages are read within 3 minutes of being received. Sending reminder texts with payment links allows businesses to reach customers where they are, and encourage them to make timely payments. Additionally, customers can now pay their bills at any time, reducing the need to call during business hours.
Still not convinced? Currently, 92% of U.S. adults carry a text-enabled phone, but only 14% of companies text with their customers. This statistic suggests that there is an opportunity for businesses to interact with their customers through a device they already know and love.
Those who integrate text to pay solutions now can gain a first-mover advantage in offering a modern alternative payment option. Since many companies aren’t using text messaging, chances of customers noticing payment requests are high.
How SMS Payments Work
Text messaging payment services vary per provider. One option is for the customer to text a shortcode to the business number to start making a payment. Another is for the business to send a text with a quick payment link to the customer’s phone number to request payment.
At Global Payments Integrated, our Customer Statements solution can send statements via text (or alternatively via email) that contain a unique statement profile link. The payment link takes the customer to an intuitive payment screen that allows them to enter their credit card details - without the need of a login name or password. The business management software is then automatically updated with the payment information.
The Value of SMS Payments For Businesses
SMS payments allow businesses to automate the collection process, in turn, reducing the number of employees needed to manage the administrative side of collections and follow up on late payments.
Employees can also limit the number of payments that take place over-the-phone or in-person. It frees up time spent verifying a customer’s identity and manually entering account numbers and credit card details, which can potentially lead to data entry errors.
SMS payments are not only an efficient way to collect payments, but they are secure as well. When ISVs partner with a reliable payments processor, they can integrate a pay by link solution that allows customers to enter their credit card details on a branded, secure, and PCI compliant site.
Since text payments are paperless, merchants can reduce the number of statements they need to print. An instant payment option also reduces the time it takes to receive payments, leading to a decreased age in outstanding balances, reduced write-offs and third party collection costs, in addition to improved cash flow.
Text Billing: Payment Requests Made Easy
As challenging business environments continue, accepting payments via text can help businesses abide by local restrictions, cater to cautious consumers, and increase their chances of getting paid on time.
Consider a business that’s offering curbside service. For example, a pet owner may have to let their veterinarian pick up their pet from their car to avoid entering the office. During the appointment, the veterinary staff can send a payment request via text message. The pet owner can then settle their bill on their mobile device, making it as easy to pay as if they were in the office.
Through text billing, the customer experience is enhanced by providing consistency across platforms, in addition to another payment option for customers to choose from. It’s a timely solution that addresses the pain points of doing business in a socially distanced way.
ISVs who are interested in implementing a text to pay functionality within their software solution can contact us to learn more about what we have to offer today!