Phone technology has exploded over the past few decades. Consumers use their phones to handle payments for all kinds of goods and services, every day. So, why not introduce that technology into your own business? Adding alternative payment methods can only increase overall customer satisfaction, and for businesses in certain fields, it can be the difference between success and failure.
What is Text 2 Pay?
Text 2 Pay is a new payment solution that allows customers to authorize payments through SMS. This option will work on any cell phone without the need for a dedicated app. The process to set up and run this payment solution is simple:
- The customer provides payment information (bank account or credit/debit card) through a secure online form.
- At the time of the transaction, the customer texts “PAY” or a prompt of seller’s choice to a secure text line.
- An ACH payment is processed automatically. The customer receives a text receipt with a confirmation number.
- Payment records are updated for the seller in real-time.
This system is especially convenient for recurrent payments, such as subscriptions and payment plans. In these cases, the customer receives a text reminding them that a payment is due soon. The customer can then either text the system to process the payment immediately, call a number to process a payment by automated voice system, or follow a link to an online form.
How Text 2 Pay can help your business
Many businesses find themselves in a high-risk category by lenders. This often includes CBD shops and Native American-run businesses. The CBD business is still in a controversial position in today’s politics, and Native tribes are subject to unique legal status in the United States.
Many traditional banks and payment processors simply choose not to do business with these high-risk entities. For this reason, tribal communities are often in “credit deserts” where individuals and businesses find it difficult or impossible to find good credit options.
These businesses are often left with no other options but to go cash-only. Of course, fewer Americans are holding cash than ever before. This poses a problem for businesses who can’t secure electronic payment solutions, particularly in areas where banks and ATMs are few and far between.
Text 2 Pay is an ideal payment solution for such businesses, allowing for cash-free transactions even without a card reader or a physical card. It can also come in handy for inconvenient situations such as when the customer leaves their card at home, the card is too damaged for your card reader, or the card reader itself goes down.
The outbreak of COVID-19 highlights another strong case for adding Text 2 Pay in your business. Contactless payment solutions are essential for reducing points of contact and are being introduced to more credit and debit cards. Text 2 Pay offers another contact-free method for customers to pay for products and services, keeping them and your employees a bit safer in these socially distant times.
How you can facilitate Text 2 Pay
While most customers have a phone, not everyone has a top of the line smartphone. You need payment solutions that can work for all of your customers. SMS is ubiquitous in mobile phones, whether old or new. Customers don’t need to download an app to take advantage of Text 2 Pay, making this method accessible to all users.
As many as 60% of customers today prefer using their phones to make payments. FLEX Payment Solutions offers a way to accommodate this and make payment processing faster and more convenient.
We offer a system to introduce Text 2 Pay to your business while ensuring compliance with the Telephone Consumer Protection Act, making sure customer information and privacy is upheld. No texts are received without prior consent of the customer.
A Text 2 Pay system can also provide options for payment by IVR technology or sending a link to a secure online form. Customers who may not be comfortable making payments by sending a text may be more inclined to send payment information to a website or by making a phone call. The more payment options a business provides, the more satisfied customers are.
Companies who set up options to pay by text, voice or web have reported a large increase in revenue. Customers like instant gratification and the convenience of having options. Adding Text 2 Pay functionality will only benefit your business in the long term.