SMS payments are a means of paying for goods, services or products via a text message sent from a mobile phone. This represents a big opportunity for SME businesses in Malaysia to capitalize on a market that is unable to make Internet or credit card related transactions. Opening up a new payment option that could unlock a new market for businesses targeting targeted market segments.
This works just like a standard SMS with the system purchasers sending a text message to pay for a item or service and a clear transaction is created between the purchaser and vendor. The cost of purchase, is added to the monthly phone bill or deducted from a pre-paid balance by the mobile phone operator allowing for a clear simple method for end-users to monitor their expenses on a single statement. This also mitigates inherent risks of publishing personal credit card or bank details on the Internet.
SMS is quick. In fact it's lightning fast, allowing your messages to be put into your subscribers' pockets or purses in a matter of seconds after you send. This ensures that there isn't any latencies involved. There is also an instant opt-in and opt-out option which is inherent with SMS's quick nature and requires only one step.
Advantages:
For the customer
- Quick and easy to use
- Purchaser does not need to have to enter their credit card or bank details, or even have a bank account.
- There isn't a need to remember passwords or usernames with payment websites like PayPal.
- It is more secure, as there isn't a need for the release of personal or account details.
For business
- Instant access to millions (billions) of mobile phones equipped with SMS facilities worldwide. There is a large penetration rate for mobile phone users in Malaysia, equating to 140%.
- Access to millions of customers that do not have a bank account or credit card that has prevented them from buying goods and services before.
- No need to verify customers' identities or worry about chasing payments or cards being denied.
- All the billing is handled by the mobile phone operator.
- It is easy and quite often costs little to set up.
Conclusion
Although there is a growth in other forms of payments such as Near Field Communication payment option and payment via web applications, there remains a simple fact that most basic mobile phones are capable of sending and receiving text messages meaning that SMS payments are seen by many in the industry to be a major player in future mobile payments. Start receiving payments through SMS now through EVERWORKS innovative SMS Payment Gateway.
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