Valid Considerations When Accepting Payments by Text

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It’s no secret that texting is more popular than calling these days. In fact, texting is the #1 reason people use their smartphones, with over 80% of Americans using text messaging regularly. Taking advantage of this trend, many companies have made it possible to accept payment via text. This being the case, let’s take a look at some things you should consider when accepting payment by text.

1. It’s Fast and Easy

The easier you make paying invoices for your customers, the more money you will make. This is a statistical reality since overly complex payment options can cause frustration to the point of abandonment. Going by this logic, it only makes sense to give customers the ability to pay by text. This makes it fast and easy for them since they’re already texting regularly and are fully comfortable and knowledgable on how to do this.

Getting your customers to pay by text is simple. You send them a bill via text, and they can text back the word “pay” to pay it. This is done using whatever payment method your customers have registered with you, such as their debit card, credit card, or online payment processor.

2. Versatility

One of the best things about being able to accept a text payment is that it can be sent from anywhere. Your customers don’t have to visit you in person, they don’t have to send mail, and they don’t need to use their desktop computers. This allows your customers to pay you instantly from any location. Whether they’re at a concert, sporting event, work, or spending time with their family, all they have to do is type one word to make a payment.

3. Better Engagement and Response

You should also consider the fact that texts get far greater engagement and response rates than invoices sent via email, snail mail, or voice messages. This is because people are used to responding to text instantly. On top of that, text messaging has a 98% open rate, reducing the chances your invoice gets ignored.

Naturally, a high open rate leads to a high response rate. Studies have shown that texts are up to seven times better for getting a response from customers. The moment you send an invoice via text, there is a good chance that your customers will pay you immediately.

4. Integration and Automation

Another great thing about using text messaging for invoices is how efficient it is. This is because it can be easily integrated into bookkeeping software such as Xero and Quick Books Online. Using this strategy, you can automate most of your payment and accounting tasks so that they rely on as little human involvement as possible. This gives you greater efficiency and lessens the chance of costly errors.

5. Feedback and Reviews

When accepting text payments, you can also make other tasks easy and convenient for your customers. For example, you can have your invoice transition seamlessly into a request for feedback. This could be asking your customer to take a survey, vote in a poll, or leave a review. Of course, this method does work best if you offer some incentive for your customer to leave feedback since their time is valuable. Just remember that soliciting positive reviews is illegal in many areas.

6. Setting Up Payment by Text

Setting up a payment by text service for your customers consists of a few simple steps. While this may vary slightly depending on the service you’re using, it typically goes something like this:

Choose a Service – Sign up for the pay-by-text service that you would like to use.

Implement Integrations – Once you’ve signed up, you can integrate the service with your business.

Create a Reminder Plan – Not everyone will pay their bill immediately, even with a system as simple as pay by text. To deal with this, you’ll need to set up a reminder schedule for your invoicing.

Boost Your Business with Text Payments

Accepting text payments can help you take your business to the next level by reaching new customers, improving customer satisfaction, and reducing the number of late payments. If you’re relying on email, snail mail, or voice messages for invoicing, there is no reason not to add text invoices to the list. In time, you may find that accepting payment by text is the only method of invoicing you need.

Thanks for reading.

Author: Veronika Nicoladge

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