What is Premium SMS?

Premium SMS (PSMS for short) is the denomination for text messages with a set tariff that is applied to an incoming or outgoing message. The additional tariff is applied to a consumer's mobile phone bill, or debited directly from a pay-as-you-go card. This technology makes it possible to use SMS as a payment method.

The most common way of payment requires the user to send a message to a national short code (in Sweden for instance, these are 5 digit numbers starting with 7, e.g. 72456). After having sent a message, the user is then debited the set tariff and can receive their ring tone, coupon, code or get access to a service or product, with the action or product delivered by SMS, alternatively a receipt delivered by SMS.

Benefits of using PSMS

• Fast and efficient.
• Large target group.
  The majority of all mobile phones today, support SMS without any need for special settings or software. This means almost everyone has the option to use SMS as a payment channel.
• Safe.
  There is no need to expose personal information to the seller and you need physical access to the phone at hand to complete a payment. This along with the widespread use of person to person SMS communication, makes Premium SMS a simple and safe way to pay for services.