As we all know, SMS payment is a process of making a payment by sending an SMS from your mobile phone. In other words, it is a type of mobile payment. It is very convenient for those who do not have cash or cards with them. All you need is your mobile phone and you can make the payment anywhere and anytime.
SMS payment is very safe and secure. The mobile phone number is used as the account number and the PIN (Personal Identification Number) is used as the password. So, even if your mobile phone is lost or stolen, no one can use it to make payments without your PIN.
To make an SMS payment, you just need to send an SMS to the merchant’s number with the amount you want to pay. The merchant will then deduct the amount from your account and send you a confirmation SMS. It is that simple!
SMS payments are becoming very popular these days as more and more people are using their mobile phones to make payments. So, if you are a merchant, you should definitely offer SMS payment to your customers.
What are the Benefits of SMS Payments?
There are many benefits of SMS payments. Some of them are mentioned below:
- Convenience: As mentioned earlier, SMS payment is very convenient as you can make the payment anytime and anywhere.
- Safety and security: SMS payment is safe and secure as it uses a PIN for authentication.
- Easy to use: SMS payment is very easy to use. All you need to do is send an SMS to the merchant’s number with the amount you want to pay.
- Fast: SMS payments are fast as you will receive a confirmation SMS from the merchant immediately after making the payment.
- No need for cash or cards: You don’t need to carry cash or cards with you as all you need is your mobile phone to make the payment.
- Wide acceptability: SMS payments are accepted by many merchants these days.
- Lower transaction costs: The transaction costs of SMS payments are lower as compared to other methods of payment such as credit cards and debit cards.
So, these are some of the benefits of SMS payments. If you are a merchant, you should definitely offer this payment option to your customers.
What are the disadvantages of SMS Payments?
There are a few disadvantages of SMS payments. Some of them are mentioned below:
- Limited to small amounts: SMS payment is mostly used for small amounts. So, if you want to make a large payment, you will have to use another method of payment.
- Requires a mobile phone: You need a mobile phone to make an SMS payment. So, if you don’t have a mobile phone, you will not be able to make the payment.
- May not be available in all countries: SMS payment may not be available in all countries. So, if you are travelling to a country where SMS payment is not available, you will not be able to use this payment method.
- Requires a data connection: You need a data connection to make an SMS payment. So, if you don’t have a data connection, you will not be able to make the payment.
- Not suitable for all types of payments: SMS payment is not suitable for all types of payments. For example, you cannot use SMS payment to pay your utility bills.
So, these are some of the disadvantages of SMS payments. However, the advantages of SMS payments far outweigh the disadvantages.