SMS Solution Helps People Pay Easier

Mobile payment SMS solutions are proving to be the ideal alternative to cash, especially in rural areas.

According to Google, China currently has a population of 1.3 billion people. For every 1 million people, there are an average of 530 Point-of-Sales Systems (POS) and ATMs.  Contrast this to the United States where there are an average of 10,000 POS systems and ATMs to every 1 million people. And, to add to the dilemma, it has to be kept in mind that most of the transactions in rural China are cash based while most of the POS systems and ATMs are located in the cities. This has proven to be problematic for those living in rural areas, until recently, with the introduction of a creative SMS solution.

The Mobile Payment SMS Solution

The payment system provides individuals with the convenience of not having to rely on the presence of cash to perform transactions. Instead, all that is required is to send an SMS text message containing the mobile number of the recipient and the amount. A notification message is sent to the recipient once the funds have been transferred into their account. This type of SMS solution provides a number of benefits to the individual, some of which are:

• Increased convenience when doing business as there is no need to rely on technology that is hard to come by
• Less risk to the individual seeing as there is no need to carry hard currency.
• Use ubiquitous media (the cell phone and SMS) which means that the technology is not restricted to specific types of handsets or people.

Needless to say there is a benefit to the financial institutions using this SMS solution too: they are able to expand their presence across a broader geographical region with decreased expenditure, which ultimately translates into more revenue gained. And that from a service that has the potential to improve the quality of life of millions of individuals.

Will it Spread?

Similar technologies already exist, with banks currently using push messaging to provide their customers with account security and information. But we are yet to see a widely implemented solution available that adds to the everyday shopping experience by using an SMS solution as ubiquitous as SMS. The concept is good and can provide millions upon millions of individuals in rural areas with a safe alternative to carrying money or having to travel for miles to reach a bank. But, more importantly, such a system could provide everyone, including city dwellers, with added convenience when it comes to doing business or transferring money.

Interested in making life easier for your customers? Read more on our SMS solution page.

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Tags: mobile payments, mobile transactions, SMS Solution, sms solutions