AuthVia Blog – Complete Guide to Pay by Text Solutions: # Reasons Why You Need TXT2PAY®
Could the time you spend sending payment reminders through the mail be better invested? Could the revenue tied up in receivables be put to work today if you had the cash on hand? Do you want to reduce your costs to ship bills through the mail and be eco-friendly while doing so?
TXT2PAY® provides a convenient, fully automated solution to invoicing and payments. The streamlined text-to-pay solutions offer an intuitive and familiar interface using text messaging to receive, review, and pay an invoice all from their mobile device without the need for an additional mobile app or eCommerce checkout in a browser.
Unlike email, where businesses need to be concerned with open rates, 98% of all text messages are read. Indeed, with the added benefit of timely payment notifications over text, consumers are unlikely to miss a payment. This statement is supported by Authvia data, where 75%+ of people pay their bill in 2-days despite a 30-day payment cycle.
TXT2PAY® offers recurring benefits too. Unlike “text-a-link” solutions that rely on a one-time secure link to make a specific payment, Authvia’s system captures payment credentials for repeat use by the consumer. The payment credentials are stored securely in the cloud by Authvia’s banking industry compliant solution.
Moreover, not only are the payment credentials available for use with the original business, but they are available for any business using the Authvia system, creating a payments ecosystem that benefits both consumers and businesses with convenient, fast, and secure payments processes. The situation is an instant win/win for everyone involved.
This article will explore the top reasons businesses need TXT2PAY® and explore related important information about the contactless payment ecosystem that relies on a simple, easy-to-understand SMS payment solution that is embedded in every mobile phone.
How does TXT2PAY® work?
The biggest question asked is, “How do text payments work?”
TXT2PAY® relies on SMS keywords combined with autoresponders. The technology behind AuthVia’s TXT2PAY® is very straightforward and remarkably safe.
A simple text invoice is sent to the client. The client will then send a text back to the business that contains a pre-selected SMS keyword such as “billing” or “payment.” The keyword indicates that the customer is ready to make their payment.
Once the payment is ready, the rapid SMS autoresponder will text a message that confirms the billing amount and payment method.
Depending on your business process, you can allow your customers to save their credit card information in a file, making the entire TXT2PAY® transaction smoother and faster. Your customers don’t have to hunt for their debit or credit card and waste time entering all the information. From payment to payment, the information is safely and securely stored.
The SMS-based payment option is a great perk. Once the client’s payment has cleared, then the autoresponder sends out a receipt via text.
What is TXT2PAY®?
Nowadays, everyone spends a great deal of time on their smartphone and mobile devices. Think about how much time each day you spend texting, posting on social media, responding to emails, talking, shopping, listening to podcasts, and watching videos.
Statistica reports that there are six billion smartphone subscriptions worldwide, and that number is forecast to grow by several hundred million within the next several years. According to studies, most cell phone owners and users are found in the United States, China, and India.
With so much global cell phone usage, many businesses are curious how everyone is using their cell phones.
Research reveals the following interesting statistics:
- Americans are checking their cell phones an average of 262 times a day which works out to once every five and a half minutes.
- Around 80 percent of people check their cellphones within ten minutes of waking up in the morning.
- Texting is prevalent, even when two people are sitting in the same room, because 67 percent report testing someone in the same room.
- Around 40 percent of smartphone users confess to using their cell phones while driving.
- About 47 percent of people check their cell phones even when on a date.
- Up to 70 percent of users admit to using their smartphones while using the bathroom.
Clearly, many people have a hardcore cellphone obsession, and businesses would be remiss in not finding a way to benefit from that committed usage. Text-to-pay solutions are an exciting and modern spin on old-school invoicing. Paying bills has never been more accessible from a historical perspective.
Paying an invoice via text is often referred to as an SMS (short message service) payment. With text to pay, customers make a prompt payment using the texting service on their smartphones.
TXT2PAY® is genuinely an innovative, secure, and quick process that benefits businesses and customers. Businesses receive on-time and fast payments, and customers don’t have to worry about forgetting to pay their bills and possibly taking a hit on their credit score for a late payment.
Contactless Payment Benefits
The COVID19 pandemic has changed the way many companies conduct business (probably forever). Contactless payment has emerged due to social distancing and is continuing to become a viable growing trend. It has sent businesses scrambling for ways to accept payments without face-to-face interaction.
Studies show that around 35 percent of customers prefer to pay with contactless (TXT2PAY®) options. As many as 62 percent of shoppers and buyers under the age of 35 have stated that they will willingly pay via text if a store accepts such a payment form.
TXT2PAY® vs. Email
When a person receives a text, they are far more likely to open it and read the contents. In fact, texts have a 98 percent open rate versus email, which is only 15 to 25 percent. Using text to charge, collect, and manage payments remotely is far more successful than email.
Text messages are easily accessible virtually anywhere in the world if the person has a mobile service. Accepting payments via text is a necessary step forward into the world’s digital culture. Are you excited to try TXT2PAY® payment processing?
You should be because it can significantly benefit your business and help your company become far more modernized, which will appeal to a more extensive customer base.
The Basics of Text Invoicing: How Does TXT2PAY® Work?
Let’s explore the basics of how Text 2 pay works. Basically, your business is going to send an invoice to a customer using an SMS text message. The text message acts as a payment portal and makes it easy to pay any outstanding balance or make a secure payment. With a text, most customers respond quickly. If the customer’s credit card information is on their phone, they can effortlessly pay with only a couple of taps/steps.
Customers who have a solid, ongoing relationship with a business typically buy more using electronic invoicing and make payments with TXT2PAY®.
Most successful businesses know the importance of giving their customers choices. Providing multiple payment options is a great way to boost sales and enjoy increased revenue. TXT2PAY® provides greater flexibility by placing purchasing powers right in the customer’s hands where they belong.
Let’s explore how a TXT2PAY®account works.
- Your business can send payment reminders directly to your customers.
- Establish an online ‘wallet’ to effortlessly make bill payments and send out reminders.
Below are the 4 easy steps to theTXT2PAY® process:
- Your customer chooses to accept text messages from your company’s business account.
- Once accepted, your business can then send pay-by-text prompts via text message directly to the customer’s smartphone.
- The customer must either enter their personal payment information or opt to have their card information saved for future payments and purchases. With AuthViaTXT2PAY® , clients never have to worry about inputting their credit card information.
- A confirmation text message is sent confirming that payment has been received and processed.
Reasons Why You Need TXT2PAY®
Let’s explore the many reasons why you should try TXT2PAY® . The number one reason is that it benefits not only your business but also your customers. However, there are more reasons to try the SMS payment option.
TXT2PAY® is Easy and Convenient
Text-to-pay payment processing is easy and fast. A business simply sends out a notification via text message that the customer’s invoice payment is due. The customer then has the option in the text message to authorize the payment by simply replying to the text message using their smartphone.
With TXT2PAY®, a customer never has to remember their card information or reenter it via text. Clients also no longer must write a check or call a business to make a payment. Paying online has always been easy, but text-to-pay is even swifter and more convenient.
Did you know that 91 percent of Americans have their smartphone within physical reach 24/7? With their phone so readily available, a person will quickly look at the incoming text message when they hear the notification go off. A customer will view a texted invoice reminder far faster than any other messaging channel option. Best of all, they typically act faster and quickly pay the invoice using their phone’s text service.
Rapid Cash Flow Improvement
WithTXT2PAY®, your business receives faster payments, which reduces the number of days a sale remains outstanding and significantly boosts your cash flow. Improved cash flow is always welcome news for small to midsize businesses because lack of fluid cash can make paying vendors, issuing paychecks, and making capital expenditures a challenge. With faster payments, your cash flow is freed, and your business starts to run smoothly.
On a serious note, the U.S. Bank study shows that 82 percent of all businesses fail due to cash flow problems. Immediate payment of invoices can make all the differences in the world to prevent business failure.
With cutting-edge technology, pay by text is a secure SMS-based payment option that is easy to set up. If you have previously utilized an SMS marketing service platform for managing your text subscribers or as a form of communication with your customers, then TXT2PAY® is the natural next progression to add to your accounting.
Every SMS platform is unique, but they have one thing in common – a fast and easy setup. They rely on setup wizards or easy-to-follow templates that let you configure and customize your company’s pay-by-text features. Services, such as AuthVia’sTXT2PAY® , can easily be integrated into your CRM software through the use of APIs. Managing pay by text features has never been more straightforward.
Meet and Exceed Customer Demand
WithTXT2PAY® , you will meet and exceed your customer’s demands. Research has shown that 72 percent of professionals choose to text over any other messaging platform as their first choice. It appears that younger professionals (those under 35) have a particular affinity for texting.
A survey carried out by small businesses shows that 62 percent of customers (significantly younger people) prefer to pay with text using their smartphones, so businesses are stepping to the plate by providing text to pay services.
One thing to note is that the businesses with tremendous success with text to pay do not force their customers to use the service. Instead, they present it as a payment option and let the customer decide whether to use it. Customers appreciate the freedom of choice.
Improved Customer Experience
The goal of any business is to improve the customer experience to ensure that they are retained well into the future. The goal of any successful business is customer retention. The customer experience (known as CX) is all about the perceptions and feelings of the customer.
In the words of Amazon’s creator Jeff Bezos, “We our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.” Text to pay improves the customer experience of most who use the service.
The importance of customer retention through improving their experience cannot be overlooked. The Harvard Business School found that a customer retention rate of only five percent has the potential to increase the company’s profitability from 25 to 95 percent. Basically, the stats show that even a slight increase in your business’s customer retention will end up almost doubling your profits.
Any business can improve the customer experience by taking steps to make the customers’ lives easier. Txt 2 pay is just one of those ways. Every business should offer text-to-pay options in their payment toolbox.
Rapid Payments via TXT2PAY®
A simple pay-by-text message will accelerate and streamline your accounts receivable process by making everything remarkably easy to pay. You should offer your customers SMS alerts when their bills are due. Set up the text alert system to rapidly send an SMS to customers on their due date, so they never forget about and miss a payment.
The SMS text will provide instructions on how to pay the invoice by text. All a customer must do is respond to the text to pay their bill quickly. The text system is a great way to reduce the chances that a customer might pay the bill until later and forget. Also, they don’t have to worry about logging in to complete the payment process with a text, so the payment is extremely rapid and efficient.
Your accounts receivable will thank you for embracing TXT2PAY® technology so your business personnel can focus on more important things.
Cost of TXT2PAY®
Most businesses have embraced paperless billing because it’s an eco-friendly practice, more accessible, and cost-effective. Businesses don’t have to worry about wasting money on materials such as paper and envelopes, printing costs, and postage. Not to mention the added staffing involved in physically mailing invoices and bills to customers. All the costs of invoicing in traditional ways rapidly add up.
Pay by text saves money by allowing a business to go virtually paperless and is a great alternative and convenient billing and payment method for customers.
Also, in many cases, text messages are already included in SMS marketing services, or you can add them for a small additional cost.
Depending on the situation, with TXT2PAY®, you might be looking at a payment processing rate of 2.9 percent plus 30 cents for each transaction for credit and debit cards. Also, a 1 percent (at a $10 cap) for ACH or echeck transactions. Some might offer volume processing. However, this scenario can vary, and you’ll want to check with the financial institution to determine final and hidden costs.
Safety of TXT2PAY®
One of the first concerns customers have about any payment option is safety. Customers want to know if pay by text is safe? They need reassurance that their account information is guarded against possible hacking and their personal information is secure.
Pay by text relies on encrypted SMS gateways that help guarantee a customer’s payment goes through secure processing. Any text message provider who provides the feature must follow the strict Payment Card Industry Data Security Standards (PCI-DSS) that cover the handling of bank or credit card information. Businesses and customers all benefit from the peace of mind of knowing that all their sensitive data is being handled properly.
The entire text-to-pay transaction is handled within the framework of SMS. Rest assured that customers are never redirected to a third-party payment processing system (a complex process that often puts sensitive information at risk). By not sending customers to a third-party payment processing system, the chances of their payment information being stolen, hacked, or compromised become rarer.
The benefit of pay by text for customers and consumers is using a secure, convenient, and fast channel for all invoicing and bill payments.
When seeking a pay-by text message provider, always consider a full-service marketing and delivery solutions provider such asTXT2PAY® . Finding the perfect match for your business and customers gives you a decisive marketing edge by providing you with communication features that your business needs to extend the reach of all your company’s campaigns.
How do I set up SMS payments?
Whether you use AuthVia TXT2PAY®, or go with some other text to pay payment service, they are all set up similarly. One of the first questions any business owner asks is if it’s hard to set up SMS payments?
Customers who are not familiar with SMS payments usually also have questions about ease of use. Luckily for the user, it’s a breeze to use SMS payments. They don’t have to remember a password.
With TXT2PAY®, the customer simply enters a four-digit number that they pick and set up to approve the payment. There are no lengthy or complicated passwords to keep track of or remember. The entire process usually takes less than a minute from start to finish for the customer.
Let’s explore TXT2PAY® FAQ:
What is TXT2PAY® ?
AuthVia is a messaging-based payment provider that offers the revolutionary and easy-to-use TXT2PAY® product for businesses. It enables text-based conversations between the business and clients. Plus, best of all, it lets a business accept payments via text with ease.
The group was founded in 2014 by a team of experts in payments and telecommunications. AuthVia lets hundreds of businesses effectively send thousands of texts to process millions of dollars effortlessly.
Are Text to Pay and TXT2PAY® the Same?
TXT2Pay is a form of text to pay that lets businesses invoice their customers via text. The customer then responds with a four-digit number to approve payment of the invoice. The entire process takes less than a minute. It is the perfect contactless payment solution. TXT2PAY® also helps remind customers to pay their bills on time. Customers benefit by never missing a payment and being able to make a payment with ease.
Why Should a Business Offer TXT2PAY®?
Texts are the perfect way for a business to request payment. Most customers prefer text conversations with businesses when they are inquiring about purchases or bills. A text to request and receive payments is similar and a natural transition for today’s modern text-centric society.
Customers are already using their smartphones more than ever to schedule and manage every aspect of their lives, so paying bills via contactless billing is just one more perk of smartphone usage. Businesses can seamlessly request and accept payments via the text format, which most payers enjoy and prefer.
What Integration Feature Does TXT2PAY® Offer?
TXT2Pay is a fully automated text-based payment system that requests payment via text. The system uses a mobile app to send out payment requests to customers using a messaging portal. Payments received are deposited into the business’s bank account of choice by the following day. There are also reporting configurations for tracking activity available.
How Does a Business Request Payment via TXT2PAY®?
Requesting payment via TXT2PAY® is a straightforward process. You will use a specified payment template. When you sign up for TXT2PAY®, you are given a ‘payment request’ template automatically added to your account.
To send the invoice and payment request to a customer via text, follow these steps:
- Open a text conversation with the customer who you will be requesting payment.
- Pick the ‘Payment Request’ template.
- Add the payment amount and complete a description of the payment in the required fields.
- Click the send button.
- AuthVia will send a text with a link to the customer. The customer clicks on the link to complete the payment process.
How Does a Customer Respond to a TXT2PAY® Invoice Text?
A consumer can make a payment by simply texting back when they receive a TXT2PAY® invoice text. They will typically respond using the four digits of their phone number to meet the needs of the request. Also, customers can store multiple credit cards and debit cards in their AuthVia wallet, which gives them even greater flexibility for future payments and purchases.
With AuthVia’s TXT2PAY® security measures, customers can rest assured that their credit card and debit card information is safe and protected with PCI DSS compliance (Payment Card Industry Data Security Standards)
What Does TXT2PAY® Mean for My Business?
Every business wants to know what TXT2PAY® means for them. Here is a brief description of precisely what TXT2PAY® by AuthVia can mean for your business.
The payment process for goods and services remains one of the most common touchpoints that occur between customers and companies. The process must be positive and headache-free for everyone involved. Customers don’t want to deal with complicated payments, and businesses don’t want to waste their staff’s time or create unnecessary complications that can cost the company money.
Businesses want to focus on customer retention, which means ensuring customer satisfaction every step of the way. Creating a fulfilling customer experience with invoicing and payment goes a long way toward ensuring that customers remain loyal to a company and keep coming back.
What Does TXT2PAY® Mean for Customers?
Customers want to pay their bills on time and with minimal effort. TXT2PAY® meets those needs. They can quickly pay their bills anywhere and anytime using the successful payment channel method of text to pay. The entire process becomes a win-win for everyone involved.
Going mobile with payments also ensures social distance and safety with contactless billing and payment. A business does not have to have an accounting representative meet with a customer to collect payment. Instead, they can go 100 percent contact-free.
The customer simply texts ‘yes’ in response to the text, and they can then make their payment. In some cases, they might also use a four-digit number to approve the payment. Best of all, everyone reads and responds to texts!
Businesses get paid faster using TXT2PAY®. In most cases, the TXT2PAY® bill is seen and paid within three minutes! You can instantly request and receive payment using Salesforce. You’ll accelerate A/R, which reduces the costly expense of collections.
Businesses Using TXT2PAY®
The integration of TXT2PAY® is innovative and promising for all businesses – big or small. With automated text-based payment requests, a business uses the software to send out an invoice on the web, desktop, or using the mobile app to customers. The payment request is easy to understand and remarkably effective (unlike emails which usually go unread). The text turns into real-time payments for goods and services – the goal of every business.
Payments collected are then deposited directly into the business’s bank account. In addition, there are reporting configurations available that a business can use to track all activity and stay on top of things.
Safe Contactless Payment Invoicing and Processing Using TXT2PAY®
TXT2Pay has emerged at a time in history when limited face-to-face contact, social distancing, and contactless communication have become a necessary part of life and business in many parts of the world. Consumers have adapted to the change and are more receptive to contactless payment to stay safe and ensure safety within the community.
Another thing that has emerged during the COVID-19 pandemic is that consumers are spending a great deal of time on their mobile devices, according to reports – especially making eCommerce purchases, using online banking, and messaging.
Businesses embrace TXT2PAY® to accept credit and debit card payments because they do not need a point of sale or terminal. Customers pay without ever navigating away from their tried-and-true texting app – which they appreciate.
The truly contactless communication and payment solution keeps both businesses and consumers safe by maintaining social distancing.
John Lauer, the chief executive officer of Zipwhip, says in an interview about TXT2PAY® with BENZINGA, “Businesses are struggling during the pandemic to engage their customers and keep revenue coming in. But we know that the easier you make buying something from you, the more people will do it.
When you send a TXT2PAY® request, your customer only needs their mobile device to complete the payment, and they do it through their native texting app. Our thousands of customers nationwide have found that texting increases engagement and expedites interactions, and now it’s directly adding revenue as well.”
In the same interview with BENZINGA, Chris Brunner, the founder and chief executive officer at AuthVia, expanded on Lauer’s comments with the following, “Enabling safer payment experiences is now just as critical as offering a fast, convenient, and friendly experience. By partnering with Zipwhip, we’re able to rapidly integrate and deploy a truly contactless payment solution to merchants of all types and sizes. Usage data has confirmed that consumers are not hesitating to use TXT2PAY® for making purchases for everything from curb-side delivery of ice cream to auto parts and veterinary services, simply because it’s convenient.”
Conclusion: Why Use TXT2PAY®?
For businesses who want to request and receive payments within seconds from customers, TXT2PAY® remains the leading (if not the number one) choice in payment invoicing and processing.
All payments are tracked and managed on AuthVia’s dashboard, which is fully customizable. The software enables both billing and reconciliation with ease. Businesses simply sign up for a new processing account, or they can use their existing payment processor to make use of all TXT2PAY® transactions. Receiving payments over SMS texting has never been more straightforward or more rewarding for businesses and their customers.
With all the reasons you need TXT2PAY®, isn’t it time your business embraces the SMS invoicing and payment system full-heartedly? Help improve your company’s customer retention by making payments using text messaging a breeze for everyone involved.
Are you interested in using TXT2PAY® for your business? Contact us today to learn more!