The modern customer demands convenience; they want you to tailor the customer experience to their specific needs and expectations. Part of appealing to your customers is offering them the payment methods that they prefer. Adding text-to-pay to your payment options is an excellent way to do this. In addition to making life easier for your customers, it also helps your business.
Take a closer look at how SMS payments work, why they can be a game changer for your business, and how to get started.
What is Text-to-pay?
As the name implies, text-to-pay allows your customers to pay via text directly from their smartphone. Text-to-pay can also be referred to as SMS payments because it uses short messaging service (SMS) messages.
Once customers sign up to receive texts from your business and make their first payment, you can store their payment information in your files. This way, you can simply send them a message asking if they want to pay and they can text back a codeword to confirm, such as “Yes.”
An alternative form of text messages for payment involves you texting customers a payment link.
Why Text-to-Pay is a Game Changer for Small Businesses
Text-to-pay has various benefits both for you and your customers. Here are a few reasons this payment method is a game changer for small businesses.
It’s Fast
Text-to-pay allows you to automate your payment process. With the right text-to-pay platform in your toolkit, you’ll be able to automatically send payment options and have your customers respond right away. This is quick for both you and your customers.
On the customer’s end, they only have to click on a link, enter their payment info, and press submit. No need to physically visit a store or make a phone call to relay card information.
On your end, the fact that customers can pay in seconds means that you receive payments more quickly. This saves your business even more time and lets you focus on tasks that are more important. Furthermore, if a customer forgets to make a payment, all you have to do is fire off a quick reminder to nudge them in the right direction.
From reduced phone calls to less time asking for bill payments, text message payments save time for everyone involved.
It’s Convenient
The convenience of SMS payments can’t be overstated. A big part of this is due to the already-mentioned fact that customers don’t have to make a phone call or visit a physical store. They can pay in seconds without having to disrupt their day.
It’s Easy
An SMS payment is easy for both your business and your customers to use. The process is intuitive and eliminates friction. Anyone who uses a smartphone knows how to click a link and enter payment details.
As an added bonus, with the right system, you can even store your customer’s buying preferences—so you can continue to provide effective, targeted outreach in the future.
Customers Can Pay Without Disrupting Their Day
Text messages have a 98% open rate—most people are glued to their smartphones. Because of this, it is incredibly likely that when customers receive a text payment reminder from your business, they’ll pay immediately. And they won’t need to schedule dedicated time to do it.
This results in less time wasted on your end—as we’ve already mentioned, text reminders can be automated, which means no more chasing down customers.
It Reduces Late Payments
Any small business owner knows how important it is for customers to pay on time. Small businesses simply don’t deal with the same cash flow as larger companies, so they rely on their customers for on-time payments. Because text-to-pay allows for quick and frictionless payments, it also greatly reduces late payments.
It’s Safe and Secure
The systems behind SMS payment processing are designed to be safe and secure. They will keep your customer’s information safe and can reduce the chance of fraud. They also reduce the risk associated with having to carry cash to pay for something. And, because this is a contactless payment method, it reduces the risk of spreading illnesses.
Customers Love It
Your customers will love text-to-pay. According to our research, payment convenience is a key factor in determining whether to purchase from a local business.
As you know, customer satisfaction is crucial for your business’s well-being. So, offering this feature will boost customer loyalty, leading to repeat customers, positive reviews online, and plenty of referrals.
It Sets You Apart From the Competition
While SMS payment is growing in popularity, it is still not necessarily an expected feature. As such, you can get ahead of the competition by offering it.
It Doesn’t Have to Be Your Only Payment Option
Worried that offering this payment method will drive less tech-savvy customers away? It’s true that everyone has different preferences, and running a successful business means appealing to as many people as possible. By offering text payments and other traditional payment methods, you can appeal to a wider variety of customers. It’s all about options.
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Text-to-Pay Templates to Make Your Own
Getting started with text payments is easy, and we’ve gathered SMS payment templates to help you get started.
Payment Request Templates
The following templates are useful for the text message where you initially request payment.
→“Hi, [CONTACT NAME]. You have a payment of [AMOUNT] due on [DATE] to [COMPANY]. Payments can be made here: [LINK]”
→“Hi, [CONTACT NAME]. You have a payment of [AMOUNT] due on [DATE] to [Business]. Please reach out to [COMPANY] at this number with any questions. You can make your payment here: [LINK]”
→“Hi there [CONTACT NAME]. It looks like the credit card on your account has expired. Please visit the link below or call us at [PHONE NUMBER] to update your payment information with [COMPANY]. Thanks! [LINK]”
Payment Reminder Templates
The following templates can be used to remind your customers of an outstanding payment. Use one of them word-for-word or tweak them to fit your brand’s unique voice.
→“Hi [CONTACT NAME]. Just a reminder that your payment of [AMOUNT] is due on [Date]. Feel free to call or text [COMPANY] at [PHONE NUMBER] with any questions. Thanks! Visit this link to make your payment [LINK]”
→“Hi [CONTACT NAME]. Unfortunately, [COMPANY] hasn’t received your payment of [AMOUNT] for [PRODUCT/SERVICE] yet. As a reminder, your payment is due on [DATE]. Visit this link to pay: [LINK]”
→“This is a reminder for [CONTACT NAME] to pay invoice #[NUMBER] by [DATE] to [COMPANY]. Please contact us at [PHONE NUMBER] with any questions or concerns. You can make your payment here: [LINK]”
→“Hi [CONTACT NAME], this is [COMPANY]. Unfortunately, your payment of [AMOUNT] for [PRODUCT/SERVICE] is overdue and you have been charged a late fee of [AMOUNT]. Please use this link to pay at your earliest convenience to avoid additional late fees: [LINK]”
Get Started with Text-to-pay Today
Podium makes it easy to get started with text-to–pay. Ready to see what all the hype is about? Sign up for a no-strings-attached free trial and send your first text-to-pay link today.
