Future of SMS: A2P SMS
- Published on - Sep 28, 2022
- 8 mins read
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As we move further into the digital age, SMS is evolving to keep up. One of the newer applications of SMS is A2P, or application to person messaging. This type of SMS is used by businesses to send communications directly to their customers. A2P SMS has become an important tool for customer service and marketing. These messages can be anything from appointment reminders to shipping notifications. A2P SMS is a great way to keep your customers informed and engaged with your business!
In this blog post, we will discuss the growing trend of A2P SMS. We will also look at what A2P SMS is, how it works, and some of the benefits that businesses can expect from using it.
What is Application to Person Messaging?
Application to person message, also known as an A2P SMS, is simply a text message that is sent from a business directly to one of its customers. This type of messaging has become increasingly popular in recent years as businesses look for new ways to engage with their customers. A2P SMS messages can be used for a variety of purposes, including customer service, marketing, and even payments.
One of the advantages of A21P SMS is that it allows businesses to reach their customers directly. This means that businesses can send messages without having to go through a third-party service. Additionally, A2P SMS messages are typically delivered very quickly. This is because they are sent using the same networks that are used for traditional SMS messages.
A2P SMS messages can be sent using a variety of platforms, including online portals, APIs, and even directly from CRM systems. This means that businesses have a lot of flexibility when it comes to sending A2P SMS messages. Moreover, there are a number of providers that offer A2P SMS services. This means that businesses can find the right provider for their needs.
How does SMS A2P Works?
A2P SMS messages are sent using the same networks that are used for traditional SMS messages. This means that A21P SMS messages can be delivered to any mobile phone, regardless of the carrier. Additionally, A2P SMS messages can be sent to landlines. However, it should be noted that A2P SMS messages cannot be sent to VoIP numbers.
When sending an A2P SMS message, businesses will need to include a few pieces of information. First, businesses will need to provide the recipient's phone number. Second, businesses will need to provide the message that they want to send. Finally, businesses will need to choose a sender ID. The sender ID is the number or name that will appear on the recipient's phone.
Once all of the necessary information has been provided, businesses can send their A2P SMS messages. The message will then be delivered to the recipient's phone within a few seconds.
It should be noted that businesses will need to have an A2P SMS plan in order to send messages. This type of plan typically includes a certain number of credits that can be used each month. Furthermore, businesses may need to pay a small fee for each A2P SMS message that they send. However, the cost of sending A2P SMS messages is typically very reasonable.
Finally, it is important to note that there are a few different types of A2P SMS plans. The most common type of plan is the pay-as-you-go plan. This type of plan allows businesses to purchase credits in advance. Businesses can then use these credits whenever they need to send an A2P SMS message.
The other type of A2P SMS plan is the subscription plan. This type of plan typically includes a monthly fee. In return, businesses are given a certain number of credits that can be used each month. Lastly, businesses may receive discounts on the cost of each A2P SMS message that they send.
Businesses should choose the type of A2P SMS plan that best meets their needs. Pay-as-you-go plans are great for businesses that only need to send a few messages each month. However, subscription plans are a better option for businesses that need to send a large number of messages each month.
A2P SMS is quickly becoming the preferred method of communication for many businesses. This is because A2P SMS offers a number of advantages over traditional methods of communication. If you are looking for a new way to reach your customers, A2P SMS may be the right choice for you.
Key Opportunities to Exploit in A2P Messaging
Previously, P2P SMS was the primary form of SMS communication. P2P, or person-to-person SMS, allowed friends, families, and loved ones to keep in touch with one another. However, it witnessed severely negative trends in its volumes, particularly due to the negligible cost, path-breaking ease, and speed offered by OTT platforms like WhatsApp, Facebook Messenger, and OS-specific apps like iMessage. As a result, P2P SMS declined at a CAGR of -11.0% between 2014 and 2019.
A recent report by Global Market Insights, Inc., however, suggests that A2P SMS will grow at a CAGR of over 13% between 2020 and 2026. The major reason for this is the fact that A2P offers distinct advantages over P2P as well as OTT apps, which are detailed below:
- A2P does not require an internet connection: One of the key advantages of A2P is that it does not require an internet connection to work. This is in stark contrast to OTT apps like WhatsApp and Facebook Messenger, which do not work without an active internet connection. As a result, A2P is ideal for businesses that need to communicate with their customers in areas with poor or no internet connectivity.
- A2P is more reliable: Another key advantage of A2P is that it is more reliable than OTT apps. This is because A21P messages are sent directly from the sender's mobile network operator to the recipient's mobile network operator. OTT apps, on the other hand, rely on the internet to send messages, which can often result in delays or even message loss.
- A2P offers better deliverability: Another key advantage of A2P over OTT apps is that it offers better deliverability. Suppose you send a message to your customer through WhatsApp. If the customer does not have an active internet connection, the message will be delivered as soon as he or she reconnects to the internet. However, if you send the same message through A2P, it will be delivered immediately, regardless of whether or not the customer has an active internet connection.
- A2P is more secure: Another key advantage of A21P over OTT apps is that it is more secure. For example, WhatsApp messages are stored on servers all over the world. This makes it easy for hackers to gain access to WhatsApp messages. A2P messages, on the other hand, are stored on the sender's and recipient's mobile network operator's servers. This makes it much more difficult for hackers to gain access to A2P messages.
- A2P is less likely to be blocked: Another key advantage of A21P over OTT apps is that it is less likely to be blocked. OTT apps like WhatsApp and Facebook Messenger often get blocked by governments and organizations. A2P, on the other hand, is very unlikely to be blocked because it uses the same infrastructure as traditional SMS.
Factors Affecting Optimized Messaging Services
The global A2P SMS market is expected to be driven by the following factors:
- The growing use of A2P SMS for customer relationship management: Customer relationship management (CRM) is a process that helps businesses manage their relationships with their customers. A2P SMS can be used for CRM in a number of ways, such as sending promotional messages, appointment reminders, and customer satisfaction surveys.
- The growing use of A2P SMS for marketing: Marketing is the process of creating demand for a product or service. A2P SMS can be used for marketing in a number of ways, such as sending promotional messages, conducting market research, and building brand awareness.
- The growing use of A2P SMS for customer service: Customer service is the process of providing support to customers. A2P SMS can be used for customer service in a number of ways, such as sending appointment reminders, responding to customer queries, and resolving customer complaints.
- The growing use of A2P SMS for two-factor authentication: Two-factor authentication (TFA) is a process that requires two forms of identification from the user. A2P SMS can be used for TFA in a number of ways, such as sending one-time passwords (OTPs), verifying user identity, and authorizing transactions.
The global A2P SMS market is expected to be restrained by the following factor:
- The high cost of A2P SMS: One of the major disadvantages of A2P SMS is that it is more expensive than traditional SMS. This is because A2P SMS messages are sent over the internet, which costs more than sending SMS messages over the mobile network.
The growing use of A2P SMS for business communications
Business communication is the process of exchanging information between businesses. A2P SMS can be used for business communication in a number of ways, such as sending invoices, placing orders, and sending shipping notifications.
It is important to note that the global A2P SMS market is expected to be driven by the growing use of A21P SMS for business communications. This is because A21P SMS offers a number of advantages over traditional SMSes, such as better deliverability, more security, and less likelihood of being blocked.
In conclusion, the global A21P SMS market is expected to grow at a significant rate during the forecast period. However, the high cost of A2P SMS is expected to restrain the growth of the market.