Contactless payments are a growing trend that is quickly becoming a necessity for accepting payment. Recent studies have shown that 35% of customers prefer to pay by text messages. 62% of buyers under the age of 35 frequently pay with a text if the store accepts that payment option. With an average open rate of 98% compared to that of email, Text2Pay also referred to as Text to Pay, is a quick and easy way to charge customers, collect payments, and manage outstanding balances remotely.
In today’s digital culture, where websites and text messages can be accessed from nearly anywhere, accepting payment through text is a clear next step for your growing business. So what exactly is Text to Pay and how can you leverage it for your business? Here is everything you need to know about Text to Pay payment processing.
What is Text to Pay?
Text to Pay is the process of accepting payment through mobile text messages. As an innovative payment processing tool, SMS payments (Short Message Service Payments) improves overall payment accuracy and efficiency. The contactless payment solution is a great fit for any industry or business that features recurring billing but can also be used for one-time payments to businesses with individual payment requests.
Offering Text to Pay as a payment option is effective for business types including salons, retail stores, restaurants, or any business that offers subscription-based products and services. The contactless payment solution provides security for your customers, while also eliminating paper waste and reducing late or missed payment.
How Text to Pay Payments Work
With the Text to Pay feature, you can send an invoice to your customer via SMS text, making it extremely convenient to be paid. By sending an invoice over text, your customer is more likely to respond right away. If they store credit card information on their phone, they can easily pay you with just a few taps.
Customers that have an on-going relationship with your business are likely to buy 7% more and more often when electronic invoicing and Text2Pay options are available. Offering multiple payment options to your customers has proven to boost sales and increase revenue. It also provides flexibility and convenience putting more purchasing power in the customer’s hand.
There are two basic ways that a Text2Pay account can be utilized. One way provides your business with the ability to send payment reminders to your customers and the other establishes an online ‘wallet’ for bill payment and reminders.
- First, your customer opts in to accept text messages from your business account.
- Your business can then send pay by text prompts through text to the customer’s phone number.
- The customer then enters their personal payment information deciding whether or not they’d like to save the card info for future purchases.
- Within seconds, the customer receives a reply text confirming receipt of payment.
How Using Text2Pay Payment Processing can Benefit Your Business
When you consider that the global average open rate on a text is more than 90% and it takes the average person 90 seconds to respond to a text message, building a text database for your business makes sense. Doing so speeds up your collection process and can even provide an active customer database your business can use to retarget your customers for future promotions and sales opportunities.
Text2Pay transactions have become a very popular way for customers to submit payments. That is why it is important that you’re working with a payment processing company that offers secure, cost-saving, and hassle-free ways to accept those card-not-present payments.
With Fattmerchant not only will your business have access to the wholesale card-not-present rates, you’ll also gain access to the Omni Virtual Terminal. With the virtual terminal, you’ll be able to schedule recurring payments, send Text2Pay requests, and monitor your invoices all within the dashboard.
Interested in streamlining your payments process and increasing flexibility in how you receive payments? Reach out to Fattmerchant for a consultation today.