Will Business Messaging replace A2P SMS for engagement?

January 9, 2024

Will Business Messaging replace A2P SMS for engagement?

Businesses are constantly seeking more efficient and versatile ways to connect with their customers. Due to the ubiquity of SMS, available on every mobile device, Application to Person (A2P) SMS has been a go-to communication channel for businesses to reach customers for engagement and notification.  One such evolution that is gaining momentum is the shift from A2P SMS to Business Messaging, such as WhatsApp business. This transition is not merely a trend but a strategic move that offers a myriad of benefits for businesses looking to enhance their customer engagement and communication strategies.

What is the size of the A2P SMS market?

The A2P SMS market is growing to USD 90B by 2030 from USD 64B in 2022, with a CAGR of 4.4%. There is a trend amongst enterprises moving their current SMS spend to Business Messaging due to Quality, SMS Fraud impacting their brand and significant price increases in SMS, according to Juniper research. Additionally, many brands are concerned with some providers Artificially Inflating Traffic  

Figure: A2P SMS market

Source: Research and Markets: A2P SMS - Global Strategic Business Report Nov 2023.

How SMS Fraud causing a shift to Business Messaging

One of the significant drawbacks of A2P SMS is that it is very easy for the sender to be spoofed and to trick end users into believing the SMS originator is a legitimate business. The SMS then embeds a phishing link within the SMS, and it just takes a fraction of end users to be tricked by the spoofed sender to extract sensitive private information (bank details, addresses, social security numbers etc,) and extract funds from the victims of this fraud. Business messaging protects businesses and users against this type of fraud as there is a verified sender and the business is given a Business Tick, so the end user knows the business is legitimate. Also, any links in the Business Message is verified against fraud and there are strict Opt-In rules for the business to send messages to end users, just avoiding the SPAM issues of SMS.  

Figure: How Business Messages protect end users against fraud

Protecting the business brand is a critical consideration for businesses to move engagement from SMS to Business Messaging such as WhatsApp Business. But there are many other reasons which we summarise in the following table.

Interactivity: The Need for Real-Time Engagement

Business messaging provides a platform for real-time, two-way communication. Unlike A2P SMS, which is traditionally one-way, business messaging allows businesses to engage in instant conversations with their customers. This level of interactivity is crucial in an era where customers expect quick responses and personalized interactions. This is one of the main benefits of WhatsApp business is that it’s great for 2-way engagement for upselling products or providing support.

Rich Media and Multimedia Capabilities

A2P SMS has its limitations when it comes to conveying information effectively due to 140-character limit and text only. Business messaging, on the other hand, supports rich media content, including images, videos, and interactive elements. This opens new possibilities for businesses to create engaging and visually appealing messages that capture the attention of their audience.

Chatbot Integration for Seamless Customer Service

Business messaging platforms often come with integrated chatbot capabilities. This enables businesses to automate customer interactions, providing quick responses to frequently asked questions and offering a seamless customer service experience. The use of chatbots reduces the workload on human agents and ensures 24/7 availability.

Cross-Platform Consistency and Integration to IT and AI

Business messaging solutions provide a unified platform for communication, allowing businesses to manage interactions across various channels seamlessly. This level of integration ensures consistency in messaging, regardless of whether the customer is using a messaging app, website chat, or other communication channels.

Cost-Efficiency and Scalability

Business messaging offers a cost-effective alternative to A2P SMS, especially when dealing with large volumes of messages. Additionally, these platforms often provide scalable solutions, allowing businesses to adapt to changing communication needs without incurring exorbitant costs. In a previous blog post (here) we showed the cost of WhatsApp business is lower cost per engaged user versus A2P SMS. Also, whenever more than 1 SMSs is sent in a 24-hour period, WhatsApp business can provide up to 80% savings versus SMS.

Enhanced Security and Compliance

Security is a paramount concern for businesses, especially when dealing with sensitive information. Business messaging platforms prioritize security measures, offering end-to-end encryption and compliance with data protection regulations. Additionally, Business messaging offers secure sender (business tick) and strict controls on Opt-in to further protect end users. This ensures that businesses can communicate with their customers confidently and securely.


In conclusion, the shift from A2P SMS to business messaging is not just a technological upgrade; it is a strategic move that aligns with the evolving expectations of modern consumers. The real-time, interactive, and multimedia capabilities of business messaging not only enhance customer engagement but also provide businesses with the tools they need to stay competitive in a rapidly changing digital landscape. As we move forward, it's clear that business messaging is not just a replacement for A2P SMS but a transformative force that will redefine how businesses connect with their audience.

With Business Messaging, like WhatsApp you get:

1. Secure Sender – Business Tick your customers know they are talking to you.

2. It works – 98% open rates, up to 60% CTRs, 4x conversation of email. Everyone can use WhatsApp.

3. Make money – Upsell products/services, interactive engagement e.g. Leave parcel Yes/No

4. Save money – Cheaper than SMS for most use cases (>1 SMS in 24 hrs to customer),

Effective communication and engagement are key to success for any business. With the advent of business messaging apps like WhatsApp Business, businesses now have a powerful tool at their disposal for seamless communication and efficient notifications.

Sounds Interesting – Get in touch now.

We would love to chat with you about how your business could benefit from OMNI channel messaging and WhatsApp business platform with 4X conversion. Get in touch with us at sales@payemoji.com and we will schedule a call.

So go ahead and join the conversation by taking advantage of the 23 hours that consumers spend per week on their Messaging Apps and use that to grow your Business.

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