In what is claimed to be a world-first, Sydney-based Cosmos, which processes electronic payments, and Melbourne-based SMS technology development specialist Mobile Corporation have launched -Pay Today", enabling businesses to use SMS messaging to contact customers who can then pay late bills on the spot by return SMS.
Customers will need to enter a credit card or debit card number, or a customer number or PIN if for example they're an enrolled customer with a real estate agent, to make a payment and a receipt number will be send via SMS to complete the transaction.
-SMS messaging is protected by GSM digital encryption, which means content or information is encrypted on the way in and out to the customer. This is many times more secure than making credit card payment over a landline," Cosmos managing director, Paul McGlone, told ZDNet Australia.
The transaction itself uses 256-bit encryption, -roughly twice the level of security that's currently in place in Australian banks", McGlone added.
McGlone claims to be in talks with a number of existing Cosmos real estate franchise groups and to have signed up one of the world's largest B2B information receivables management enterprises, Dun & Bradstreet, which has more than 20,000 business customers in Australia.
-We see a major application being power, gas and water," said McGlone, adding that approximately 30 percent of energy customers in Australia pay late. -We do see these players being a major market for us."
According to McGlone, Pay Today -- costing AU$1-$1.50 per SMS and associated payment -- becomes -a very cheap way" to contact late paying customers, compared with paper reminders (plus processing) which costs anywhere between AU$10 and $20.
The service will be sold to businesses on a volume-based plan, with Mobile Corporation getting a transaction fee for providing the SMS component and Cosmos a fee for processing payments.
This sounds like a another 'big brother' type idea to me.
BUT, it can be defeated easily.
If you want to avoid the SMS messages, you can get SMS reception turned off on your account.
Call your Telco for info.