Text to Pay: How It Works and How to Use It in 2024

The more than you can accommodate mobile visitors and shoppers, the better off your business will be.

And that’s why you should consider implementing a “text to pay” solution—a way for your customers to pay their invoices via text message.

Consider these numbers...

32.2% of US internet users bought something online each week via a mobile phone, according to a report by Statista. By 2025, volume for commerce that occurs via mobile is expected to reach $710.4 billion.

In other words, a lot of transactions occur on mobile devices.

And that’s where “text to pay” can come into play, helping you reach those mobile consumers and make things as easy as possible for them to purchase your product or service.

In this article, we will discuss what text to pay is, how it works, the benefits of using text to pay, and how to use text to pay successfully.

First thing’s first…

What Is “Text to Pay”?

“Text to pay” refers to payment methods that allow consumers to pay for goods or services via text messages.

When it comes to SMS, the primary way that this would work would be for your business to include payment links in a text message. The link could lead to an invoice or a payment form, for example.

Thus SMS becomes the means by which your customer can pay what they owe you.

How Does "Text to Pay" Work?

“Text to pay” works by simply sending a payment link to a customer's mobile phone via SMS. They’ll receive this text via shortcode texting or some other text-enabled phone number.

The customer then clicks on the link, which takes them to a page or invoice where they can enter their payment information. Once the customer has entered their payment information, the payment is processed.

Here is a step-by-step explanation of how text to pay works using a payment link:

1. You create a payment link for your customer. Most payment processors or invoice creation software (such as Stripe) will have an option to create a payment link that gives users direct access to paying.
2. You send the payment link to your customer via SMS. The SMS can include a brief description of the product or service that the customer is paying for, as well as the amount due. One way to send out these text messages is via an SMS platform like Mobile Text Alerts.
3. The customer clicks on the payment link in the SMS message. This takes them to a secure payment page where they can enter their payment information.
4. The customer enters their payment information and completes the purchase. The payment is processed through the payment processing system that you used to set up the payment link.
5. You receive a notification that the payment has been processed. The customer may also receive a notification that their payment has been received.

Here are some other ways “text to pay” could work:

• A business could send users a text message containing a link to user’s invoice, which could contain a payment link
• A business could allow users to use payment apps such as Apple Pay to “text” a payment
• A business may have a deal with a phone provider that allows users to simply text in to a particular phone number in order to have their payment automatically deducted from their phone provider account

Why Use “Text to Pay”? (Benefits)

There are a few reasons that you may want to consider using "text to pay"...

Quicker Payments

Late payments (or non-payments) can be frustrating and in some cases can be quite problematic. One survey in the UK found that 39% of respondents either had reduced overhead or thought they might have to reduce overhead due to unpaid invoices.

Since texting is a means of communication that people are very likely to actually notice, a “text to pay” option can help you get payments more quickly. People will see your notice and more quickly follow through.

Better Customer Experience

Giving your customers more convenient options (such as “text to pay”) helps make their experience as smooth as possible.

Obviously, the better experience you can give your customers, the better opinion they will have of your business.

Better Sales

You may see better sales because you’re giving people a convenient way for them to pay.

Offering a “text-to-pay” option helps you remove friction from the purchase process.

"Text-to-Pay" Challenges to Keep in Mind

While “text to pay” is by and large a good thing, there are a few challenges you’ll want to keep in mind…

Potential Delivery Issues

With text messages, there’s a chance that mobile carriers may flag messages as spam and prevent them from being delivered, particularly if you’re texting links.

To help mitigate this, you’ll want to make sure not to use public URL shortening services (for example, bit.ly).

It’s best to include the full link when possible, but if that’s not feasible, it’s best to use a branded URL shortener that includes your website’s domain as a part of the link.

Since there is a chance of potential delivery issues, and since some people may prefer to pay via other methods, it’s best not to use SMS as the only means that you send your invoices and accept payment.

Customer Suspicion

Because of the prevalence of text scams, some people may be suspicious of receiving texts related to paying a bill and may be hesitant to submit their payment information.

You can help mitigate this by notifying customers ahead of time that they will receive their invoice via text message. If they’re aware of this process in advance, they won’t be confused when they receive the text message asking for payment.

Collecting Customers’ Phone Numbers

In order for “text to pay” to work, you obviously need to collect the customer’s phone number.

Depending on the nature of your business, requiring your customer’s phone number could potentially present some unnecessary friction.

If this “text to pay” option is the only reason you’re collecting customers’ phone numbers, we’d recommend not making it required. (However, there may be other reasons that you want to require a phone number from customers.)

How to Set Up “Text to Pay”

To set up “text to pay,” you’ll need a payment processing service and an SMS service. Then you can follow the steps below.

Note that with development work and/or integrations, you may be able to automate many or all of these steps.

Step 1: Create an Invoice

Within your payment processor, create the invoice or bill that you’ll be sending to your customer. You can usually set up an invoice easily enough using invoice creation software, and you may be able to set up an automated billing process.

Step 2: Copy the Payment Link

Your payment processor may automatically generate a payment link for you when you create the invoice. Locate where that payment link is and copy it.

Step 3: Include the Payment Link in an SMS

In your SMS platform, set up a text message including your payment link. Your message content could say something along the lines of…

“

Thanks for your order! Here’s your link to pay: [link]

In the Mobile Text Alerts platform, you can input this content into an intuitive “Send a Message” page. From there you’ll be able to select the recipient for the message.

In order to save time, you can create a message template that you can customize by filling in the link for each recipient. You may also be able to set up automatic text messages to be triggered by programming automations via API, or by setting up automations through the integration site Zapier.

Step 4: Schedule Your Message

Schedule your message for the exact time that you’d like to send it. You’ll want to select a time that will be the best for your customers.

Don’t forget about different time zones when considering the best time to send your text messages.

(Optional) Step 5: Create Follow-Ups

To increase the chances of getting paid on time, you can schedule or automate follow-up reminders to help your customers remember to pay.

Here are some examples of what follow-up messages could say:

“

[Business Name] Notice: Just a reminder about your past due invoice. View and pay here: [link]

“

[Business Name] Notice: Your invoice is 14 days overdue. Please pay as soon as possible. View and pay here: [link]

Best Practices for “Text to Pay”

Now that you’re more aware of the concept of “text to pay” and how to set it up, here are some best practices to help you get the most out of it for your business.

Follow All Mobile Carrier Guidelines

In order to get the best message delivery for your texts, and therefore the best results, make sure to follow all the mobile carrier guidelines:

• Get Clear Opt-In Consent—Give your customers a clear way to agree to receive text messages from you and don’t text them unless they agree to it.
• Give Clear Opt-Out Instructions—Make sure that people know how they can unsubscribe from receiving future text messages.
• Submit Registration Forms—Fill out the registration forms provided for you within your SMS platform account; this helps pre-register your traffic with the mobile carriers so that they are less likely to think that your messages are spam.
• Clearly Identify Your Business—Make sure that your recipients are clearly aware of who you are.
• Avoid SHAFT—This is mostly pertinent if your product or service falls under the category of “potentially questionable”; make sure that your messages don’t contain content or links that refer to SHAFT topics: Sex, Hate, Alcohol, Firearms, or Tobacco/Cannabis. Some other topics to avoid include loans, gambling, “work from home” opportunities, “mystery shopping” opportunities, and illegal activities.

Use Branded Links

We mentioned this previously, but it bears repeating that it makes a difference what types of links you use.

What you absolutely don’t want to use are publicly shortened links, which would include links shortened by popular services such as bit.ly and tinyURL.

The best option is to simply use your full payment link, but this doesn’t always make sense in a text message. Some links are very long and aren’t conducive to sending in a text message. Plus, if you use the full link you may not be able to track clicks.

If you don’t want to use the full link, you can use branded URL shorteners—link shorteners that include your brand or domain somewhere in the link.

Send Follow-Ups, but Not Too Many

Follow-up text messages are good and helpful—sometimes people just need a nudge to remind them to make a payment.

But you don’t want to send too many follow-up texts, or else it will come across as annoying or even harassing.

We would recommend 2 follow-up messages in addition to the initial payment link.

Monitor Results

Through link tracking analytics (and potentially other monitoring tools), you should be able to get an idea for how many of your customers are actually using your “text to pay” option.

You can use those analytics to help you determine what tweaks and adjustments you may want to make to your “text to pay” process.

For example, if you see that a lot of recipients are clicking the link, that will help give you confidence that your approach is effective. On the other hand, if you’re not getting a lot of link clicks, you may want to evaluate the message content you’re including.

"Text to Pay" Use Cases

Here are some examples of ways that different kinds of businesses could use a "text to pay" option.

(This list is not comprehensive!)

Freelance Services

A freelance graphic designer completes a project for a client. They create an invoice with a payment link and send it via text to their client, allowing for quick payment upon project completion.

Subscription-based Businesses

A monthly meal kit delivery service sends text messages with payment links to customers when their annual subscriptions are due for renewal, reducing missed payments.

Medical Practices

After a patient's appointment, a dental office sends a text with a payment link for any remaining balance not covered by insurance, making it convenient for patients to settle their bills promptly.

Auto Repair Shops

Once a car repair is complete, the shop sends the customer a text with an itemized invoice and payment link, allowing the customer to pay and pick up their vehicle without delay.

Event Ticketing

An event organizer sends payment link texts to individuals who have reserved tickets, enabling them to secure their spots by paying through their mobile devices.

Personal Training Services

A personal trainer sends payment reminders with links via text to clients before their next session, ensuring timely payments (plus reducing no-shows!).

Property Management

Landlords or property management companies send monthly rent payment links via text, making it easier for tenants to pay on time - as well as reducing the need for checks or in-person payments.

Small Retail Businesses

A boutique clothing store sends payment links via text for items that customers have placed on hold, allowing them to secure their purchase before coming to the store.

Non-Profits

Churches and other non-profits send "text to donate" links which allow people to easily submit money for a donation.

FAQ

Here are a couple of “frequently searched” questions about “text to pay”...

How to politely ask someone to pay you via text?

Whoever’s asking this may mean more on a personal level, but some general principles would ring true regardless:

• Be friendly, not accusatory
• It’s OK to be direct
• Include a payment link to make it as easier as possible for your recipient to pay

Here’s an example:

Hi! Just a friendly reminder that you owe [dollar amount] for [reason]. Here’s the payment link: [link]

How to pay by text?

If you’re someone who owes money are are looking to pay by text, you can ask the business or individual to provide a payment link that allows you to pay securely online.

Alternatively, you can submit payments to businesses and individuals via smartphone apps such as Apple Pay.

Try “Text to Pay” for Your Business

You've now gone over many of the "in"s and "out"s of "text to pay" as an option for your business.

You know what it is, how it works, some pros and cons of using it, best practices, and example use case.

The question is... are you interested in giving “text to pay” a try for yourself?

To implement "text to pay," first find your invoice payment links in your payment processor. Then you can use an SMS service to push out that link to your recipient.

Get a free SMS platform trial account here to see how it works.