Premium SMS is also referred to as a premium rated SMS or PSMS billing and is used as a mobile billing method.
A shortcode is required to send and receive a premium sms. The SMS is required to trigger the billing. This was one of the earliest solutions for mobile billing which is still in common use today.
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What is Premium SMS?
A Simple & effective mobile billing methOd
Premium sms is a mobile phone billing enabler that allows consumers to pay for goods and services by sending or receiving a sms message to/from a premium rated short phone number, known as a shortcode.
It is a simple, quick and effective payment mechanism for consumers, particularly if they do not have a credit card. Given the high penetration of mobile phone handsets, premium sms also provides businesses with the opportunity to sell goods and services to a much broader market.
What is a Shortcode?
A short phone number
A short mobile phone number that has a single tariff and is used to send premium sms to or receive premium sms from
How does premium SMS work?
Instantly Charged with a shortcode
A consumer will send a sms to a shortcode or receive a sms from a shortcode and be charged a higher amount than a standard rate sms. The premium charge is called the sms shortcode tariff. In most countries there is a limit of one tariff per shortcode but in others multiple tariffs per shortcode is possible.
Mobivate aggregates its customer’s messages and delivers the premium sms messages to the network operators which in turn deliver them to the consumer’s handset.
Sending a Premium SMS
Consumers are charged on a once-off basis by sending a sms to a premium rated shortcode. This is referred to as MO billing or mobile originator billing.
Receiving a Premium SMS
A consumer will opt in (double opt in in most cases) to receive a sms on a periodic basis to pay for goods or services. The consumer’s mobile phone will be billed for every premium sms received. This is referred to as MT or mobile terminating billing and is ideally used for subscription billing whereby the consumer will be billed until he/she unsubscribes.
Premium SMS billing is an accepted and well used payment mechanism and is
suitable for high volume micro payments.
Why Use Premium SMS?
Consumers can quickly and easily purchase goods and services
Purchases can be discreet and anonymous
SUBSCRIPTION or Single payments
Purchases can be one off or on-going (subscriptions)
NO CARDS or Banks
No need for bank transfers or credit cards
Suitable for high volume micro-payments
Where does Mobivate offer Premium SMS?
Mobivate delivers over 200 million premium rate messages per month and is one of the largest premium rate sms providers in the world. We would be delighted to talk to you about your premium rate sms needs and how premium rate sms could benefit you.
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