Learn how mobile payments and SMS pay will boost your business while improving the payment experience for your users who prefer to pay by SMS.

The rising popularity of mobile and SMS payments

Mobile phones and payments are becoming prevalent worldwide. Almost 5 billion people will possess mobile phones by 2016, according to a forecast by Statista. Mobile phones make a huge difference in our lives. Users can pay by SMS through their mobile phones for a wide range of digital goods and services instead of cash, cheque, or credit cards.

Mobile payments is going to be one of the easiest and most preferred payment methods in the future. Based on purchasing behavior of users in markets worldwide, mobile payments have proven to be convenient. According to Statista, 384 million users have made mobile payments in 2015 alone. In a forecast by the International Data Corporation (IDC), mobile payments worldwide would reach 1 trillion USD in 2017. Therefore, it would be a clever move for businesses in the coming years to allow their users to pay by SMS.

What is an SMS payment?

An SMS payment lets consumers pay with SMS for a wide range of goods and services online. If the user has enough credits in their account, they can pay for their chosen product.

Mobile payment services let users make Premium SMS payments. The typical end-user payment process happens like this:

  1. User sends SMS, which contains a unique keyword and number to a premium short code.

  2. User receives a PIN (user is billed through the short code upon receiving the PIN).

  3. User enters the PIN to gain access to the purchased good or service.

Mobiamo covers half the world’s population

Mobiamo is a unique mobile payment solution with coverage in more than 80 countries. Mobiamo’s global network with more than 240 mobile carriers would let you reach over 3.5 billion mobile users worldwide and accept mobile payments from over 75 currencies.

Mobiamo also supports Direct Carrier Billing and Premium SMS, letting your users pay with their mobile phones to obtain their desired digital good and service, or pay for subscriptions.

Merchant benefits

  • Access billions of mobile phone users worldwide instantly.
  • Separate user agreements and customer identity verification is no longer needed.
  • Easy and convenient payment for users leads to a better payment experience.
    • Users do not need to have credit cards or bank accounts.
    • Users do not need to remember any password.
  • Mobile carriers handle the billing.

Merchants do not have to worry about billing users because the mobile carrier will be taking care of that. The revenues made worldwide from all carriers are gathered by Mobiamo and pays it out to the merchant.

User benefits

  • Pay by SMS ensures convenience for users because it is quick and easy to use.
  • Users do not need to enter their credit card or bank information. They don’t need to have a bank account or credit card at all.
  • Users do not need to remember any password or account handles, unlike with online credit card payments.
  • SMS pay is more secure because users do not have to give out important data, such as personal or account details.

Users simply send an SMS in order to pay for products or services online. A code or password is sent to the user, which would enable them to access the good or service they desire to purchase.

Mobile payment billing flows

With a single integration of Mobiamo, you can cover the main payment flows supported by different carriers worldwide. Once you integrate Mobiamo successfully, you wouldn’t have to integrate Premium SMS Billing or Direct Carrier Billing separately.

Premium SMS Billing

Premium SMS Billing is a text message-based billing.

  • Mobile-Originated (MO) Billing

Mobile-Originated Billing flow originates from the user’s mobile phone. MO Billing confirms the transaction and charges users once the message containing the code is sent from the user’s mobile device and received by the system. MO Billing charges users one-off, reducing complaints and increasing the user’s trust in buying with their mobile phones.

  • Mobile-Terminated (MT) Billing

Mobile-Terminated Billing flow is terminated at the user’s mobile device. MT Billing confirms the transaction and charges users once the message goes out of the system and is received by the user’s mobile device.

Direct Carrier Billing (DCB)

Direct Carrier Billing is a flow done through data connection, in contrast to Premium SMS Billing which takes place through text messages. For users, it is a quicker and easier payment flow than Premium SMS.

DCB requires users to enter their mobile phone number and is charged straight away to the user’s phone bill or remaining prepaid balance or credit. However, DCB is not available in all countries due to network restrictions.

Letting your users pay by SMS to buy your digital goods and services would prove to be advantageous in the future. Enabling mobile and SMS payments now would give you a good start on the road to a successful global business, and ensure that your users are aware that they can pay by SMS when it comes to your business. Contact sell@mobiamo.com to integrate SMS pay services powered by Mobiamo.