Decoding the Future of A2P Messaging: Where is the Industry Headed?

Decoding the Future of A2P Messaging: Where is the Industry Headed?
September 21, 2021 / Blog / posted by Harshita Kapoor

Back in the days, when lives were simpler with less complicated technology, SMS services dominated the personal communication market. However, in the past few years, it has been evident that P2P (Peer-to-Peer) SMS services are widely replaced by OTT (Over-the-Top) messaging services. OTT services are extensively exhausted by consumers in similar ways as P2P SMS and social media platforms – specifically to maintain social contact with people in their immediate lives.

Key Opportunities to Exploit in A2P Messaging

P2P SMS witnessed severely negative trends in its volumes especially due to the path-breaking ease, negligible cost and speed offered by OTT platforms like Facebook Messenger, WhatsApp, and OS-specific apps like iMessage. This decline had a severe impact on the revenues of MNOs and other telecom service providers, but it did not result in the death of SMS services. Telecom service providers discovered the potential in A2P (Application-to-Person) messaging services.

The following are some of the primary reasons why businesses are keen to take advantage of A2P messaging:

Facilitating 2-factor SMS authentication

Businesses are concerned about data breaches, which are tied to user information and data security. Companies are trying to aggressively use A2P messaging services, which are synchronized with 2-factor SMS authentication, to address this sensitive issue. This enables businesses to communicate notifications, login information, password resets, and other information in a safe manner.

Crucial Marketing Channel for Businesses

A2P messaging services are used by businesses across the world to communicate directly with their customer bases. Sending messages through SMS, apps, websites, and social media services is an economical and an effective way of confirming purchases, communicating promotions, and resolving simple customer support issues for businesses. Thus, the A2P messaging industry is expanding rapidly in terms of traffic and enterprise investment across the globe.

Replacing Traditional Marketing Channels in Various Industries

Retail – Retailers are using the A2P messaging network to provide a variety of services to their customers, including event alerts, coupon discounts, new product launch details, and product recalls, all in a relatively simple manner.

Finance – Financial firms are making the most of the A2P messaging network by communicating billing information, payment notifications, and transaction alerts to their customers in an efficient and secure manner through A2P messaging services.

Travel — Companies in the travel industry are using this platform to transmit booking information, check-in information, flight delays, and cancellations to clients, keeping them up to date through A2P messaging services.

Symbiosis of OTT and A2P Messaging – A Win-Win Situation

Despite the fact that P2P SMS communication has been hit hard by the rise of OTT, the market for SMS in A2P messaging has grown dramatically. In reality, the same OTT service is helping to drive A2P SMS growth by requiring two-factor authentication to confirm user identities during signups, password changes, and other activities. Furthermore, OTT is not the only industry that requires A2P SMS for certification. SMS is the most basic and straightforward method for any business to authenticate users that sign up for their platform. According to a report by Juniper Research, 3.5 trillion business A2P (Application-to-Person) messages will be delivered by 2023 due to the increase in the traction of OTT technologies.

It would be a mistake to pitch A2P and OTT against each other, given the rising stakes for A2P SMS services. Both have their own set of rules, and there is enough room in the market for both to coexist. The future should be considered as one of collaboration, with OTT being one of the many drivers for the growth of A2P SMS service, catering to a variety of needs for commercial and personal communication.

Broadband Telecom- a subsidiary of Bankai Group offers Enterprise Messaging Solution widely known as A2P (Application-to-Person) messaging service on the widely used SMPP protocol to send messages anywhere around the globe, providing 0Hop, Direct and Marketing Routes. The A2P Messaging platform functions in real-time and comes with reliable reports to help businesses track their progress and use the information to make future strategies. It also includes M2M, M2P, P2M, and other extensions.

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Harshita Kapoor

Harshita is a Content Writer at Bankai Group. Having pursued MBA in HR and Marketing, she found her calling in Content Writing. She has explored writing in different styles of content including coffee table books, website content, blogs, newsletters, e-books, and media. In her time of leisure, she finds happiness in binge-watching classics and practicing yoga.
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