SMS Payment Solutions
You can improve your cash flow and lower your costs with SMS messaging for billing and payments. Businesses can also improve the likelihood of loan payments being made on time through a text message reminder system.
SMS payment solutions:
Let your customer know when you’ve sent an invoice
- Tell customers when invoices are overdue
- Advise when a payment has been missed
- Offer early payment discounts or incentive
- Send an alert when service charges or credit accounts are approaching a preset limit
- Inform customers that their account has been suspended until payment is received
- Link with a Tiny URL back to your website payment gateway for immediate payment.
International studies have found that SMS reminders improve on-time loan payments resulting in a 7-9% increase in the probability of paying on time and the ‘average days late’ result dropping by two days a month. The results suggest that simple text messages help borrowers to better manage their repayment dates and can enhance customer relationships as they are perceived to be less threatening.
Personalisation is key
Research has found that variables such as timing, framing and personalisation of text messages can also impact results. It was found that the most important factors leading to significant improvements in loan payments came from personalised SMS messages sent 24 hours before the payment was due. The greater the amount of customisation, including the name of the sender, the amount to be paid and the exact due date, the better the result. These messages were more effective than just using the client’s name.
The whole process can be integrated with your software applications to automate the process. You can also set alert parameters, schedule creditor follow-ups, track every message and any reply with ease.
 Innovations for Poverty Action (IPA) in partnership with United States Agency for International Development-supported Rural Bankers Association of the Philippines-Microenterprise Access to Banking Services (RBAP-MABS) Program 2012