GlobaHub - A2P SMS provider

A2P messaging is the process of delivering messages from an application to the end user's cell phone. This happens via SMS, Push, Flash Call, WhatsApp, Viber, Telegram, iMessage, and other channels.

Companies use this form of communication to attract customers and keep in touch with them (customer service). A2P business messaging can perform authentication tasks (registration, activation, one-time passwords, etc.), as well as send time-sensitive notifications (e.g., order statuses or withdrawal alerts). The BFSI (banking, financial services and insurance) and retail markets generate the largest share of such mailings globally. Next come transportation, tourism, healthcare and entertainment.

Modern man spends almost half of his waking hours on his smartphone. Messages sent to messengers and SMS texts have a very high open rate and conversion rate. However, this trend is not being utilized to its full potential these days.

Companies are so busy with social networks and online advertising in all its manifestations that they have completely forgotten about A2P business messaging. However, such communication gets into the "personal space" of customers, where they communicate with friends and relatives. And if the content is properly organized, the client's relationship with the brand can also move into the category of "close".

As our experience shows, this is the basis for consistently high LTV.

Once, this entire market consisted of just two sectors—SMS and e-mail. However, with the development of information technologies and the increasing penetration of smartphones, the structure began to change, and the A2P market began to grow. In 2024, its volume was estimated at $72 billion. According to forecasts, by 2031, it will reach $114.75 billion. The growth is primarily driven by authentication alerts and one-time passwords generated by e-commerce, which exploded during the COVID-19 pandemic.

Another factor is marketing. Large and medium-sized companies increasingly use A2P communications to attract and retain customers every year. At the same time, the market is striving for multichannel (and its more "immersive" version—omnichannel). 52% of marketers use 3 or 4 platforms at once to communicate with customers.

Some 10 years ago, world statistics said that only 49.4% of the world's population had a smartphone. Today, that number has almost reached 86%. More than 6.6 billion people can install a messenger on their phone and receive messages via any A2P channel. This suggests that, soon enough, technology will allow businesses to virtually do away with SMS and significantly reduce the cost of communicating with customers. But while not everyone has a smartphone and there are places on Earth without Internet access, it is important to learn how to skillfully combine different ways of informing to achieve maximum efficiency at an optimal budget.

A2P messaging offers numerous benefits for businesses. They include direct and immediate communication with customers, higher engagement rates, cost-effectiveness, and the ability to automate and scale communications efficiently. It also enhances customer experience through timely updates and personalized interactions.