New SMS bill payment service opens door to faster cash collection

The new mobile payment application, which uses Short Message Service (SMS), is an ideal way for merchants to provide a simple, instant and cost-effective payment solution to the millions of consumers that will never sign-up for direct debit. It is a mobile alternative to the traditional cheque in the post. With Text cheque, consumers experience the convenience of direct debit while retaining control over when and how much they pay. The service can be used for collection of any type of bill payment, whether for utilities, telecoms, store or credit cards, and has been designed to be truly simple for users. The customers bill arrives by mail as usual with the balance to be paid or minimum payment where appropriate. The customer then receives a payment request text before the due date and replies by SMS with a short password, confirming or even stipulating the amount to be paid, if users have the option of paying a variable amount (as is the case with some credit cards). The merchant or entity collecting the bill payments then collects the cash from the customers registered payment source (bank account or credit/debit card). The service is operated by IBM and is built on the same payment processing platform that is already being used by Visa International CEMEA to enable the recently launched Visa Mobile Recharge Service (VMRS) for mobile payments.