What Is Pay by Text

Pay by Text is an innovative payment solution designed to simplify how businesses collect payments from their customers. Instead of relying on traditional invoicing or online payment portals that can sometimes be cumbersome or time-consuming, Pay by Text enables businesses to send a secure payment link directly to a customer’s mobile phone via SMS. 

When the customer receives the text message, they simply click the link, which takes them to a mobile-friendly payment page where they can complete the transaction quickly using their preferred payment method, such as a credit card or digital wallet. This method is especially valuable in today’s fast-paced world, where convenience and speed are paramount. 

For customers, it means no more searching for invoices or logging into websites—just a few taps to pay anytime and anywhere. For businesses, Pay by Text reduces payment delays, lowers administrative costs, improves cash flow, and encourages faster payment. 

It’s particularly useful for service providers, freelancers, healthcare providers, and any business that wants to offer an easy, contactless payment experience that meets customers where they already spend most of their time: on their mobile phones.

How Does Pay by Text Work

Pay by Text is a simple, user-friendly process that allows customers to make payments directly from their phones in just a few quick steps:

1. Text Message Sent: The business sends an SMS message to the customer with a secure payment link.
2. Customer Opens the Link: The customer taps the link, which opens a mobile-friendly payment page in their browser.
3. Payment Details Entered: The customer reviews the amount due and enters their payment information (credit/debit card, bank account, or digital wallet).
4. Payment Submitted: The customer confirms and submits the payment—all within a few taps.
5. Confirmation Received: Both the customer and business receive a payment confirmation via text or email.
6. Funds Processed: The transaction is processed securely, and the funds are transferred to the business’s account like a regular online payment.

How to Implement Pay by Text

Implementing Pay by Text is a straightforward process—just follow these steps to get started quickly and securely:

1. Choose a Pay-by-Text Provider: Select a payment processor or software platform that offers SMS payment functionality.
2. Integrate with Your Existing Systems: Connect the platform with your CRM, invoicing, or billing tools to manage customer contacts and payment history.
3. Set Up a Branded Payment Page: Customize the mobile payment page with your business logo, colors, and payment options (credit/debit card, wallet, etc.).
4. Enable Secure Payment Processing: Make sure your provider uses PCI-compliant technology to protect customer data and ensure secure transactions.
5. Test the Workflow: Send test messages to confirm that links work properly, pages load quickly, and payments are processed without errors.
6. Train Your Team: Educate staff on how to send payment requests, answer customer questions, and monitor incoming payments.
7. Notify Your Customers: Let your customers know about the new Pay by Text option via email, social media, or in-person, and highlight the convenience and speed.

Costs Associated with Implementing Pay by Text

While Pay by Text offers convenience and faster payments, businesses should know the costs involved before implementing it.

• Transaction Fees: Usually 2.5%–3.5% per payment, similar to credit card processing fees.
• Monthly Subscription Fees: Ranges from $10 to $100+ depending on the provider and features.
• SMS/Text Message Fees: Often charged per message, typically a few cents each.
• Setup or Integration Fees: One-time fees may apply for custom setup or platform integration.‍
• Optional Add-Ons: Extra features like branded messaging, analytics, or CRM integration may incur additional charges.