Are Text-to-Pay Services Reliable in Securing Sales?
In a post-quarantine world, contactless payments have emerged as the star of the show, capturing the spotlight in our convenience-driven society. To thrive in this new era, businesses must adapt and cater to their customers’ preferences, recognizing that the key to successful sales lies in offering what customers truly desire. This is where text-to-pay services come into play — an innovative solution that is rapidly gaining popularity.
Think about it: just 30 years ago, the concept of texting was completely foreign to us. Yet today, it has transformed into the fastest and most reliable means of communication, expanding its reach far beyond personal interactions and into the realm of business. SMS and text services have long been utilized as powerful marketing tools, but now they have evolved to serve as a form of payment as well.
An SMS service that allows you to pay works well in theory, but does text-to-pay deliver more sales? This article seeks to shed light on this question, addressing the ins and outs of text-to-pay services and providing you with all the essential information you need to know.
Understanding Text-to-Pay Services and How it Works
Text-to-pay is a payment solution that enables consumers to pay by sending a simple text message. They don’t need to type out their credit card details or go through several channels to make a payment. A text as simple as a ‘Yes’ can proceed with the payments.
This becomes possible when the businesses save the consumers’ payment details (with permission, of course). Sometimes, the text comes with a link that connects the consumers to payment portals.
The same service also provides receipts over texts, payment confirmations, payment reminders, alerts, missed payment notifications, account details, etc.
This service is most suitable for businesses that deal in recurring bills such as subscriptions, payment plans, monthly fees, bi-monthly fees, etc. However, it is also used by businesses that involve one-time payments. Text-to-pay services eliminate the need to carry cash or credit cards. It also prevents paper waste. Text-to-pay services proceed with the payment within seconds, ensuring quick and efficient workflow.
Businesses can integrate this payment solution into their company’s system by reaching out to a third party. Depending on the service provider they choose, they can enjoy a couple of additional features. For instance, some text-to-pay services are synched with the company’s accounting software, updating on their own as the payment is received.
The Reliability of Text-to-Pay Services in Securing Sales
Text-to-Pay services are among the various payment methods offered by businesses to their consumers. The question that arises is whether this service plays a significant role in securing and boosting sales. According to market research, the answer is a resounding yes. Text-to-Pay services excel at closing deals, particularly when dealing with customers who prefer making decisions from the comfort of their homes, rather than feeling pressured in face-to-face interactions with sales representatives.
Text-to-Pay services outperform emails in terms of effectiveness, primarily due to their high engagement rates. Studies reveal that a staggering 78.67% of emails go unopened by their recipients, whereas a mere 2% of text messages are left unread. Not only do texts provide businesses with better exposure compared to emails, but they also include a call-to-action, making it easier for customers to seal the deal.
However, these factors are not the sole reasons why text-to-pay services excel in converting leads. Let us delve deeper into the reasons why text-to-pay services are exceptionally reliable when it comes to securing sales:
– It Builds up Brand Image
Research indicates that 64% of consumers are inclined to have a positive perception of businesses that utilize texting as a service channel.
This positive association can be attributed to the personal touch that texts provide. When customers hold a favorable view of a business, leads are more likely to convert into sales at a faster rate. Text-to-Pay services take this a step further by not only enhancing the brand image but also offering clients a convenient avenue to transform that positive perception into a sale.
– Text-to-Pay Facilitates Faster Payments
The traditional form of payment method involves a lot of hassle and takes their sweet time to process. Credit card, cheque, and cash payments require you to carry them with you, and physically go to a payment center to complete the transactions. Not to mention all the paperwork.
Even online payments can be tedious, involving multiple steps, the search for suitable payment methods, redirection to payment pages, and finally processing the transaction. In contrast, the text-to-pay service eliminates these hurdles and helps customers to make payments more swiftly. As soon as they receive the text, they click on the link, and payment begins to process. One step and it’s done. Customers don’t have to navigate through various channels to make payments and finalize transactions. Moreover, texts are typically opened within seconds or minutes, ensuring businesses receive payments promptly.
Albeit unknowingly, this quick and efficient method entices customers to invest more readily.
– Text-To-Pay Is Convenient for Customers
The convenience provided by text-to-pay services is undeniable, even for individuals who are comfortable with cash payments or online transactions. This is primarily due to the widespread popularity of text messaging.
Yes, some of us check our emails daily, and some of us do carry our credit cards everywhere, but virtually all of us use text-messaging services. The math is straightforward, more than half of the world’s population uses cell phones, and 98% open and read texts. It’s hard to find a platform with better exposure than texts.
When text messages offer a simple method of payment, almost everyone will prefer it over any other means of payment. The convenience of text-based payments is unrivaled. When faced with a choice between two competing businesses, customers are more likely to opt for the one that offers text-to-pay services, especially when considering long-term payment plans.
– Text-To-Pay Is Convenient for Employees
Text-to-pay services aren’t just preferred by customers, but they also offer significant convenience for employees. By incorporating automation into the payment process, text-to-pay eliminates a substantial amount of manual and administrative work. This streamlined approach also alleviates the burden on sales staff, freeing them from the monotonous task of chasing customers over phone calls.
As a result, employees can redirect their intellectual capabilities toward creative problem-solving and innovative solutions. When the staff is engaged in meaningful endeavors rather than mundane tasks, it fosters productivity, ultimately benefiting the overall business operations.
– Text-to-Pay Services Have a Better Reach
Everyone in the business industry knows that better reach fosters better sales. Text-to-pay services not only allow businesses to reach a wider audience but also a wider demographic. As we mentioned earlier, half the world’s population has access to cell phones, but did you know that the majority of people in each age group own a smartphone? People of all generations have adapted to texting, which may not be the case with apps, online payments, credit cards, etc.
With text-to-pay services, businesses get a chance to market to their target audience, which increases the chances of securing sales.
– Minimizes The Chance of Customers Changing Their Minds or Delaying Payments
Did you know that the average response time for text messages is just 90 seconds, while it takes around 90 minutes for an email? There are several reasons behind this speedy response. We’re practically glued to our cell phones, text messages are typically brief and to the point, and let’s face it, most of us prioritize texts over emails.
With text-to-pay, the convenience goes even further. The link to proceed with payments is right there in the message, eliminating the temptation to put it off or mark it for later. You see when potential customers delay payment for extended periods, the chances of them changing their minds increase. But with text-to-pay, that risk is significantly reduced.
Even regular customers find text-to-pay incredibly convenient. They can make timely payments without even leaving their spot.
– Retains Customers
In addition to providing automated payment methods through texts, businesses can also open the floor for feedback. This encourages the business to make changes in the right direction. When customers notice that their complaints are heard and actions are being taken, they feel valued. It also builds a stronger connection between a business and consumers. This gradually leads to loyal customers and encourages new customers to come back again next.
– Offers One More Method of Payment to the Customers
In the ever-evolving landscape of commerce, offering a diverse range of payment options is key to securing sales. Recognizing that customers have varying preferences when it comes to payment methods based on their comfort and convenience, businesses can ensure that no potential sale slips away due to a lack of suitable options.
Text-to-Pay methods play a significant role in providing this much-needed flexibility. Unlike traditional credit card payments or automated transactions, text-to-pay services prioritize the customer’s control and consent. Every transaction is initiated only after obtaining explicit permission. Even for recurring payments, the system seeks confirmation through a text, ensuring that customers are fully aware and in agreement with the payment being processed. This level of transparency and empowerment builds trust and fosters positive customer experiences.
Security Measures in Text-to-Pay Services
Now that we know about the incredible potential of text-to-pay services as a sales-driving force, it’s clear that it goes beyond being just another payment method. Its convenience and efficiency alone can work wonders in selling products and securing sales. However, given its relative novelty, it’s only natural for businesses to have concerns about its security — and rightfully so.
A lack of a secure payment channel doesn’t just impact consumers; it also poses risks to businesses. That’s why prioritizing security should be a top consideration for businesses before implementing any new payment method. The good news is that text-to-pay services are highly secure, and in fact, they might even surpass the security of other payment methods. But businesses must exercise due diligence and ensure that specific security measures are in place when selecting a text payment service provider.
To safeguard both their interests and the trust of their customers, businesses should seek out a text payment service provider that adheres to stringent security measures. So, let’s explore the essential security measures that businesses should look for when choosing a text payment service provider:
– PCI DSS Compliant
A business must only choose a payment partner that is PCI DSS Compliant. PCI (Payment Card Industry) and DSS (Data Security Standards) ensure that a system is surrounded by all the extra measures required to protect the sensitive information of businesses as well as their customers.
– Protection Against MITM Attacks
The weakest chink in the payment armor is when customers’ information is being passed from their SMS to your payment getaway. This is where the Man in The Middle (MITM) attack happens. A third person intercepts here and steals sensitive information. A secure payment network prevents this from happening by setting up layers of security measures such as encryption protocols, securing communication channels, setting up authentication mechanisms, security audits, etc.
These layers of protection make it nearly impossible for MITM to attack. When choosing a text-to-pay service provider, businesses must ask about the protection they have in place against MITM attacks.
Find out about the authentication mechanisms used by your chosen third party. Do they offer unique passcodes, questions, or two-factor authentication? These added layers of security verify the identity of the customer and protect against unauthorized access to their payment information.
In summary, text-to-pay services have proven to be highly reliable in securing sales for businesses. With their convenience, user-friendliness, and ability to build brand image, these services offer a seamless and efficient payment solution that customers prefer. The high engagement rate of text messages compared to emails further amplifies their effectiveness in driving sales and converting leads.
Security, a crucial concern for both businesses and customers, is also addressed by text-to-pay services. By implementing robust encryption, secure communication channels, and authentication mechanisms, businesses can ensure the safety of customer data and protect against unauthorized access.
All in all, the rising popularity of text-to-pay services reflects the increasing demand for contactless and convenient payment methods. As businesses adapt to this changing landscape, incorporating text-to-pay services into their payment options can lead to enhanced sales, improved customer satisfaction, and a competitive edge in the market.