Have you ever seen an received an SMS Text Message donation request from a charitable organization? If so, then you’ve witnessed the power of pay via text first-hand. Many charities have used this Payment service to raise funds for their cause. In fact, Red Cross used text messaging services to raise $21 million dollars for Haiti relief efforts.

However, this technology isn’t limited to not-for-profit organizations. Financial services should harness the power of pay via text too. Here’s why…

Why Financial Services Should Use Pay Via Text

With 95% of Americans owning a cell phone, more people are turning to their mobile phones for convenient solutions to their everyday needs. Whether it’s ordering food delivery, booking a doctor’s appointment, or shopping online, there is a mobile service that fulfills their need. This convenience now includes making bill payments online.

Financial companies who provide mobile payment solutions (such as pay via text) will be able to capture this market of mobile users by providing a more convenient service to them. In turn, it improves on-time payments while still meeting regulatory requirements.

Failing to do this will mean missing out on this mobile market, becoming less competitive, and being left behind by your rivals. A mobile payment solution should be a priority for every company in the financial industry.

How Pay Via Text Works

Pay via text is a straightforward process. The customer pays their bill by sending a text from their mobile phone to a number, known as a short code, assigned to your business. The payment is then added to the customer’s monthly phone bill or charged to a payment method on file (credit card, debit card, or bank account). Integration of pay via text may require a third-party provider to connect the transactional data, bill, and payment processor. FSSI partners with Solutions by Text, a leading SMS provider that specializes in regulated industries, to create a streamlined and secure pass-through of data and authorization of customer payments.

Benefits of Pay Via Text

There are four benefits of using pay via text. First, it increases on-time payments. This is because text messages have a 98% open rate meaning your customers won’t miss your billing reminder. Also, it removes friction from the payment process since all that is required is a simple text. This convenience helps with improving on-time payments too.

Second, it provides a better customer experience. Customers prefer to receive texts over phone calls. It’s especially true with billing reminders. By matching their preferences, you will provide an overall positive experience that leads to repeat business and customer loyalty. 

Third, it reduces the costs of invoicing. Text message invoicing removes the need for cash handling and materials required for printed statements. It reduces required staffing and postage costs which, in turn, means better profitability for the company.

Finally, it provides security. Secure processing across encrypted channels makes it difficult for someone to collect and use a customer’s account information for malicious reasons. This limits the incidence of fraud.

Pay Via Text is the Future of Mobile Payments for The Financial Industry

Pay by text enables the financial industry to capture the large market of mobile payment users. It provides a convenient payment solution, gives a better customer experience, and is secure. This reduces billing costs, increases on-time payments, and limits fraud.

About FSSI

FSSI is a full-service outsourcing company that specializes in delivering transactional and marketing communications for the financial industry. Our eStreamOne technology is a paperless bill payment and presentment solution that reduces print production costs, increase on-time payments, and improves your customer’s experience. FSSI offers compliant text messaging services including: account notifications, payment reminders, pay via text, marketing promotions, and more. Learn more about FSSI’s SMS Billing Services as well as the other SMS Text Message Services we offer by contacting Dan Palmquist, VP of Sales, or call 714.436.3300.

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