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Current trends in Application-to-Person (A2P) messaging

December 1, 2023

Telesign Team

The increasing traction of mobile marketing and the growing number of mobile users globally has led to the popularity of application-to-person (A2P) messaging. More and more companies are turning to A2P messaging to reach and engage with their target audience & customers in a reliable, fast, and secure way. A2P messaging allows an application to send a message (typically an SMS in the United States, but, worldwide, OTT channels are gaining popularity fast) directly to a user. Examples of these types of messages include bank alerts, shipping notifications from online stores, appointment reminders, promotional and loyalty program notifications, and two-factor authentication one-time passcodes for account security. 

Benefits of A2P messaging for business

A2P messaging is quickly becoming one of the most common methods for business-to-consumer communications for several key reasons:

Personalization: Consumers prefer their communications to be short, personalized, and on their terms. A2P messaging for businesses enables a tailored experience for customers. 

Reach and engagement: SMS open rates are higher and faster than email open rates. In fact, 98% of SMS messages are read versus email at 21%. 

Relevancy: As SMS messages are opened more frequently and more quickly than email, messaging can meet the end user’s more immediate needs. SMS messages are typically read within 3 minutes and hit click through rates of 19% versus email at 2%.

With increasing consumer acceptance of A2P SMS, more industries and service providers are adopting this method of communication. Here are some of the most popular trends in A2P messaging that have taken over the business landscape. 

Growth in specific markets: E-Commerce, financial services/banking, health care, and travel are showing an anchored reliance on A2P messaging for notifications, account activity, alerts, and more to increase customer engagement and usage. 

Two-factor authentication: To increase account security or verify changes to a user’s account, using A2P messaging for two-factor authentication (through a one-time passcode [OTP]) is a quick, reliable, and secure method that is becoming an industry standard and increasing in end-user adoption. 

Internet of Things: With the usage of Internet of Things (IoT) on the rise, A2P messaging serves an essential role in enabling users to receive various alerts and notifications and communicate securely using their devices.  

OTT channels: The rise of over-the-top (OTT) apps like WhatsApp may have significantly reduced the use of person-to-person (P2P) SMS, but they are increasingly becoming a driver of growth in A2P messaging. Simply put, A2P SMS has become a key way that businesses reach their customers. Additionally, OTT app integrations with communications platform as a service (CPaaS) companies like Telesign make it possible for A2P communications to reach users directly through their messaging app of choice.

Telesign for A2P messaging

Leading the way in A2P messaging are companies like Telesign. Some of the strategies and partnerships we’ve applied to optimize our execution of A2P messaging are: 

Minimizing delivery issues: We provide advanced phone number cleansing, ample international coverage, and connect directly to hundreds of carriers around the world, employing a waterfall approach across multiple routes to help ensure high delivery rates. 

Compliance expertise: We offer assistance to help you navigate Telephone Consumer Protection Act (TCPA) risks and adhere to worldwide content compliance regulations to work to ensure customer messages are not blocked and reach their intended recipients. 

Self-service capabilities: The need for real-time cloud communications is on the rise, and businesses are looking for quick, customizable ways to embed messaging and voice APIs into their apps. CPaaS companies like Telesign now offer self-service capabilities that allow developers to easily test and deploy A2P messaging APIs.  

Through our self-service experience, developers can sign up for a free trial, get API credentials along with $5 in free test credits, and use their credit card to purchase services. With this self-service model, developers can get up and running with no minimum transaction thresholds. 

If you’re planning on capitalizing on A2P to enhance communications with your users, sign up for a free trial account of our self-service offerings today.