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Text Messaging, Collections and Payments

By MessagePay
July 11, 2023

SMS messages, or text messages, are extremely popular today and are used by nearly all age groups. Text messages have a high open/read rate of 98%, compared to emails which have an open/read rate of only about 18-20%. Texts tend to convey messages clearly and quickly directly to the member’s personal phone. They’re an improvement over unexpected call center interactions or an email that’s likely to get buried in their inbox.

As such, text messages address the hardest part about debt collection: how to effectively get in touch with members. Low response rates are traditionally a consistent headache for collection departments. After all, the less credit unions are able to connect with their target members, the fewer collections they can make.

Credit unions can use a text message-based approach to satisfy the main collection notifications, which include:

  • Billing notifications
  • Overdue notifications
  • Settlement choices and other informative updates
  • Payment*

The strong likelihood that text messages will be read makes them one of the best ways to reach out and connect with borrowers. Credit unions can send text-based reminders about payment due dates, terms, click-to-pay and more. Plus, the two-way, real-time text conversations can build genuine relationships with individual members.

*The strength of text messages in the context of collections is unmatched. With MessagePay, credit unions can combine this strength with the most important aspect of collections: payment. Unique links can be dropped right into a conversation and allow for members to make payment from their preferred payment type in just a few taps on their smartphone.

Connect with MessagePay to schedule a demo.


MessagePay provides a modern, streamlined payment platform for modern members. By implementing the MessagePay solution, credit unions can offer their members a simple, convenient alternative to loan payments, account funding and more. MessagePay provides access to customized payment reminders and easy, two-tap payments via the SMS service on a member’s mobile device. MessagePay also provides payments over the phone and web and supports multiple payments methods. Fast, easy, and secure payments for members wherever they may be.