Could texting be the future of mobile payments?

As previously mentioned in this blog, SMS services can be used for a variety of fund transfer purposes, such as donating to the Presidential candidates. Today, that concept is being implemented into consumer purchases. Companies may soon be able to use these services to engage their customers as well as receiving payments, all through the use of the SMS applications.

According to an article in CIO.com, Barclays bank is implementing a series of SMS services that allows customers to transfer money between users and to vendors via text message. The service is eventually turned into a person to person mobile application, but Shaun Trey, the head of mobile banking at Barclays, stressed that text messaging is so important due to its simplicity.

"Wouldn't it be nice to text that person and send them the money you owed them?" Trey told the news source.

This concept could be carried over to the retail industry for a number of different uses. Imagine customers and retail clerks performing transactions by sending text messages to one another. This would build efficiency into the checkout process and ultimately increase retail revenue.

Many industry analysts assumed near field communication (NFC) was the next logical step in mobile payments, but not every device has that functionality. Most recently, the iPhone 5 failed to add it as a new feature. However, every mobile phone allows texting.

Of course, implementing a service like this carries its own set of risks. Bank account security is crucial and companies must ensure that sensitive data is secure. However, a perfected SMS payment system would prove to be a benefit to both businesses and their customers. The convenience offered alone would be worth the implementation.

Companies looking for innovative ways to integrate text messaging into their operations should contact an SMS services provider. Swift SMS Gateway offers the tools companies need to conduct all kinds of tasks via texting.