Is text to pay right for your business?

Saturday, January 03, 2015

As technology allows for more flexible payment options, it only makes sense that customers could be reminded of and make their payments over text. Text to pay offers flexibility for businesses and customers alike by sending customers reminders, balances, and the ability to pay a bill directly via SMS.

Businesses need to consider utilizing SMS payment gateways to reduce late payments, offer customers payment flexibility, and provide a secure way to complete payments. This is also an eco-friendly alternative to sending paper bills in the mail.

What is text to pay?

Text to pay (also referred to as pay by text) is a convenient way for businesses to collect payments and send payment reminders to their customers via text. Since many customers use their mobile phones to complete contactless payments (via NFC) or provide phone numbers to get the inside scoop on sales, offers, and more from their favorite businesses, text to pay offers an easy way to complete purchases in a similar and accessible way.

How it works

When customers opt-in to use text payments, they give permission for businesses to send information regarding their accounts and payments via SMS. Here are the steps that take place once permissions are granted to use this payment method:

  1. Businesses send customers prompts to pay an outstanding bill via SMS
  2. Customers respond to the text, which authorizes payment
  3. Seconds after a payment is sent, customers receive a confirmation text

When a customer uses text to pay, their payment information (such as a credit card/debit card and authorization code) is already in the SMS gateway, so when they initiate the payment via text, they do not need to enter any extra data for that payment to be processed. This makes the text to pay process fast and efficient.

Why is it growing in popularity?

As the usage of smartphones, mobile payments, and SMS drastically increases worldwide, so is the demand for services like text to pay. Customers like it because it is fast and easy. Businesses like it because it allows them to collect receivables faster and avoid late payments. But there are more benefits to text to pay, including security, that makes it desirable for both parties.

Convenience and efficiency

Texts are much more likely to be opened and read by the recipient than email, rather than be buried and forgotten in an inbox, which makes this payment option much more effective comparatively.

Also, there is no need for the customer to remember log-in information like a username and password or to have their card/bank account information on hand to use text to pay. Instead, when the business sends a payment request, the customer can text back “yes” to initiate the payment, making the transaction entirely hassle-free.

Is it safe?

One of the biggest concerns with this payment option is security. However, despite the relative ease and simplicity of such a payment process, PCI-compliant SMS payment gateways offer encryption, tokenization and other security measures to ensure that customer card and bank data are protected.

What kind of business can benefit from text to pay?

Reduce late payments

Using an SMS payment gateway to accept payments over text is a great way to ensure that payments are made on time. Customers who opt-in for text to pay can be sent payment reminders, remaining balances, due dates, and more via text message to help them stay on top of their purchases. Then, they can make those payments easily with the touch of a button. This level of accessibility makes it easier than ever for businesses to receive their payments on time.

Increase customer satisfaction

Text to pay offers ease and stability to customers, especially when dealing with regular payments like utilities, rent, or car payments. The system offers notifications, reminders, and overviews of balances, all easily located in a text where they will be able to see and respond to it quickly. This makes payment management a breeze. It’s a win-win for both parties.

Heartland offers flexible payment options for all business needs

Overall, text to pay offers convenience, security, and efficiency to both businesses and their customers. As technology evolves to bring simpler payment methods to the foreground, businesses can thrive by adapting with the changes and offering their customers payment flexibility.

Heartland is the point of sale, payments and payroll solution of choice for entrepreneurs that need human-centered technology to sell more, keep customers coming back and spend less time in the back office. Nearly 1,000,000 businesses trust us to guide them through market changes and technology challenges, so they can stay competitive and focus on building remarkable businesses instead of managing the daily grind. Learn more at