Text-to-pay is a fast and easy way for customers to make payments from their phones. It’s also an effective way to increase customer loyalty and improve cash flow.
Despite its popularity, SMS payments are only sometimes the best business option. Here are some reasons why:
It’s More Convenient
If you’re looking for an easy way to collect customer payments, SMS or text payment methods are your best bet. They’re secure and efficient and have proven to reduce accounts receivables by 80% for small businesses.
In a world where smartphones and other mobile devices are the norms, ensuring your business offers the most convenient ways for your clients to pay you is important. Whether asking for consultation fees, advance payments before a job or invoices after completing work, SMS and text payment options are the perfect way to get paid quickly and securely.
It’s also easier to track your cash flow with a payment-by-text system than with traditional methods. This lets you know when and how much to charge your customers, which can help boost your bottom line and increase revenue.
Most importantly, payment by text is a great way to build and maintain customer trust. This can lead to repeat business, referrals, and more.
Many customers need help remembering their bills when busy and on the go. An automated text reminder can help them stay on top of their payments, which will help your business avoid delinquencies and shorten the duration of your DSO. It’s an effective and affordable option for any small business.
It’s More Secure
Text payments are not only more convenient, but they’re also a lot more secure. Customers don’t have to share their personal information in a text message so they won’t be at risk for fraud or scams.
While they could be a better replacement for mailed bills, emailed invoices, and other traditional payment methods, mobile payments can be an excellent addition to your business’s payment strategy. They can help you avoid invoicing mistakes, and they’re a great way to remind customers to pay their bills when it comes time for them to do so.
There are a few ways to go about it, but one of the most effective is to partner with an SMS payment provider that can offer your business various solutions to meet your unique needs.
Compared to mailed bills, emailed invoices, or other traditional ways to ask for money, a mobile payment solution can create faster results by meeting your buyers through a more convenient platform. It can also broaden the number of payment methods you accept, and it’s an easy way to empower your customers to use their smartphone wallets.
It’s More Reliable
If you’re a business owner, text payments are a great way to keep track of your customers’ accounts and collect payments without the hassle of phone calls. They’re also a natural way to close sales and quickly make conversions happen. For example, a store that answers a customer’s questions about a dining table via text can send an invoice to the client immediately.
It’s a quick and easy process that doesn’t require your customers’ personal input information or bank account numbers. Rather, they must send an in-text link to a short code and then pay from their mobile phone bill or with a credit card.
Many businesses are hesitant to try out payment by text, but it’s an excellent option. One of the best is that it’s a paperless method that can lower your company’s carbon footprint. Plus, it’s a more efficient way to get customers’ payment information into your billing system and can reduce errors that slow down the payment process.
It’s More Efficient
Text payments are more efficient than traditional payments for a variety of reasons. First, they’re more likely to be read than a traditional email or invoice. This makes it easier for customers to make a payment and helps you avoid overdue bills, which are common when customers receive a reminder via a messaging channel they don’t usually use.
The second reason is that customers are more likely to respond quickly when they see a payment request on their mobile devices. This is because it’s more convenient and less hassle than finding an invoice in their cluttered inbox or checking their mail.
Lastly, it’s much more efficient for businesses to get paid when customers pay by text. This is because it can be done anytime, anywhere in the world, using a device that most people are already familiar with.
It’s More Affordable
Whether a non-profit or a for-profit business, you can use text payments to boost sales and revenue. Adding SMS payment options to your business is simple and affordable.
You can set up an account with an SMS payment provider and submit your invoices to customers through a simple, in-text link. The link sends the customer to your online invoices, and your payment processing company takes care of the rest. This can be a great way to increase customer satisfaction, and you can also use it to collect past-due payments.
Many SMS payment providers offer packages for monthly fees plus a low flat fee per transaction. While these platforms can be a great option for small businesses, it’s important to know the finer details before signing up.
One thing you should be aware of is that some companies charge high fees for text-to-pay services. This is usually because the system includes interchange fees and other fees. You should only consider using an SMS payment solution if you’re confident you’ll see a positive return on your investment.
Another reason that text payments are cheaper than traditional methods is that they don’t involve any credit card or bank verification. This means that you can take payments from customers who don’t have a bank account or credit card, and it’s easier for you to avoid counterfeit cash and fraud.