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Agile Payments Blog

SMS Payment Gateway Solutions | Pay by Text Payment GatewaySolutions 2021SMS payments (or “pay by text” payments) are a means of paying for services or goods via a mobile phone text message. The customer typically receives a text prompting them to initiate payment via a website interface or additional text messaging.SMS PaymentGateway


  • What Is An SMS Payment Gateway?
  • How Does SMS Payment Processing Work?
  • What To Look For In An SMS Payment Gateway Provider
  • How To Get Started


 What is an SMS Payment Gateway?

SMS stands for Short Messaging Service. SMS Payment solution allow businesses to send texts to customers with the ability to pay from that text. SMS Payment Solutions allow businesses to:

  • Text customers with payment reminders
  • Accept payment via the cell phone 

When the customer enters their credit card or ACH data there must be a way to get that data securely to the back end payment processor.

The secure data transmission as well as reporting data to reconcile that payment is carried out by the SMS Payment Gateway.

Businesses are now beginning to realize that paying by text offers benefits to both consumers and the business itself. With 98% open rates and 95% read rates it’s easy to see why SMS Payment Solutions have become such an attractive customer billing option. 

How does SMS Payment Processing Work?

Text to Pay solutions present your customers the ability to opt-in and receive a text message containing information (e.g. current balance and due date). Customers can opt-in to either receiving pay by text messages for any payment related needs or solely bill payment/late payment text reminders. Steps:

  1. Customers opt in to receiving texts around their account
  2. When current charges come due, text messages are sent to all clients opting-in to the payment channel. The business would be able to customize rule sets and workflows. Eg “When bill is 2 days late initiate outbound text to pay campaign”
  3. Customers wanting to pay an invoice via text interact with their phone. In some cases they could be directed to a secure payment page to enter relevant data [eg credit card or ACH]. In other cases if they have a payment account associated with their text to pay account payment can be made using securely stored payment data
  4. Customer and business receive receipt notification. If using a management software reconciliation can be automated if your software has integrated the SMS payment solution into the platform

 Your customers will appreciate the convenience of 10-second payments and your business will benefit from fewer delinquencies and shortened payment days outstanding.

What to Look For in an SMS | Pay by Tex Payment Gateway Provider

Data security and PCI compliant SMS payment solutions are just part of the solution. Here are more features to look for in your SMS Payment Solution and SMS Payment Gateway partner:


  1. Self-service: Set up your message content, reply logic, fail-over settings and gateway integration without the need for any code: no need for any managed service charges or change fees.
  2. PCI Compliance: SMS is not typically a PCI compliant route. Instead, send trackable links to custom micro sites to securely collect credit card details via smartphone browsers delivering your customers a secure, rich, branded and PCI compliant experience.
  3. Stored Payment Methods: For recurring payments, the ability to offer stored credit card details provides a seamless experience and making the payment process more convenient for the end user.
  4. Redundancy: IVR voice or email outreach if SMS delivery fails or if payment fails. SMS is an extremely effective way to reach your customers and delivery rates are high, but SMS delivery is not something that can be guaranteed. Therefore the ability to switch to another channel such as voice or email is beneficial if an SMS fails because of carrier network issues/maintenance, unavailable handsets or bad numbers.
  5. 2-way SMS: Set up automated SMS replies based on chosen keywords, allowing customers to respond for more information or speak to an agent.
  6. Network quality: Chose an SMS Payment Gateway partner with high quality carrier connections and who specializes in business critical communications, not marketing. It is also important to always have a dedicated number unique to your campaigns, stay away from any shared or random numbers. The telco carriers all have spam filtering and volume restrictions designed to protect their end users, and if you aren’t careful even legitimate business messaging can get caught by those filters. The right partner who truly understands this space can advise you on the correct numbers to use and assist you with any compliance questions you may have.
  7. Global Number Purchase: Purchase numbers in the regions where your customers are located, improving international deliverability and response rates. (This one may not be super relevant if we are just targeting US businesses).

To get started leveraging the benefits of SMS Payment Solutions Contact us today