How to Take Payments by SMS

SMS payments, often referred to as pay by text, allow businesses to request payments by sending a secure link via text message.

Customers receive the SMS, tap the link, and complete the payment in their browser using their preferred method, such as debit card, credit card, digital wallets, or open banking. Because the customer enters their details directly into a secure page, businesses do not need to handle sensitive card information.

This guide explains how SMS payments work, the risks involved, and the safest ways to accept them in the UK today.

How Do SMS Payments Work?

SMS payments follow a simple process:

A business sends a payment request via text message
The message contains a secure payment link
The customer opens the link on their device
Payment is completed through a secure, hosted page

This approach allows payments to be completed quickly without requiring phone calls, invoices, or manual handling.

Are SMS Payments Safe?

SMS payments can be a secure way to accept payments when processed through compliant systems.

Because customers enter their own payment details into a protected environment, the risk of exposing sensitive data is significantly reduced. Additional security measures, such as authentication checks, help prevent fraud and unauthorised transactions.

How Do Businesses Accept Payments via SMS?

Businesses typically use a payment platform to send SMS payment requests.

This allows them to:

generate secure payment links
send them instantly to customers
track payment status in real time

SMS payments are commonly used for remote transactions, overdue invoices, and situations where immediate payment is required.

Somebody uses a credit card to make a payment by telephone

Are SMS Payments PCI Compliant?

SMS payments can support PCI compliance when implemented correctly.

Since payment details are entered by the customer on a secure hosted page, businesses avoid handling card data directly. This reduces PCI scope and simplifies compliance requirements compared to manual payment methods.

What Are the Benefits of SMS Payments?

SMS payments offer several advantages for both businesses and customers:

Convenience – customers can pay instantly from their mobile
Speed – transactions are completed in seconds
Security – sensitive data is handled in a protected environment
Flexibility – supports multiple payment methods
Improved cash flow – faster payment collection

What Are the Risks of SMS Payments?

The risks associated with SMS payments are generally low when secure systems are used, but can include:

phishing attempts if links are not verified
reliance on mobile connectivity
potential fraud without proper authentication

Using trusted payment platforms and secure links helps minimise these risks.

Can You Use SMS Payments for Bills and Invoices?

Yes, SMS payments are commonly used for bill payments and invoice collection.

Businesses can send a payment link directly to a customer’s phone, allowing them to settle outstanding balances quickly without needing to log into a separate system or make a phone call.