Text to Pay, explained

Text to Pay is a type of digital transaction where people opt in to get texts from businesses and, essentially, pay by text message. The user receives a secure payment link via SMS and can click on the link to send payments from a smartphone.

Learn what Text to Pay is, how it works, and how to receive SMS payment links from businesses via text in this simple guide.

How does Text to Pay work?

The Text to Pay process is generally simple. An individual chooses to receive recurring, automated personalized marketing alerts or text payment messages from a business. This kicks off the Text to Pay transaction process.

Next, a business sends a text message to an individual asking for a balance due. There may be a note about what the balance is for, but the message will be short. It will also include a link for the customer to click to pay by text.

Payment service providers, like PayPal, create a secure link where individuals can enter their card information. If the customer already has PayPal on their phone, their payment through SMS may be even faster.

Once the payment is complete, the customer sees a confirmation page in their browser and then receives a confirmation text.

Setting up Text to Pay

People can set up Text to Pay with a payment service provider by entering their credit or debit card information and keeping it on file, linking their mobile phone number to their payment account. They could also link a digital wallet, like Apple Pay. Text to Pay requirements include a compatible mobile device and a payment account.

How to make a payment with Text to Pay

Payment via text is typically straightforward. A business will send someone a request for a Text to Pay payment. The person clicks the link, agrees to the payment, and gets their receipt from the business.

The business will likely cover the service charges of accepting the payment. But messaging and data rates could contribute to Text to Pay fees.

Potential benefits of using Text to Pay

There are several potential upsides of Text to Pay. The process only requires a phone with text messaging capability to send secure text payments. This may make it convenient and fast, especially for on-the-go transactions such as payments at events or casual markets.

Another potential benefit is that Text to Pay can keep card data safe because the information is not shared directly with the merchant and therefore isn’t stored within their database.

Safety considerations when using Text to Pay

Before making any payments over SMS, it’s important to consider Text to Pay security. Use a trusted payment service provider or reputable business to help ensure that the text payments are safe.

PayPal, for example, does not share credit card information with the seller, helping create secure text transactions.