Late payments aren't merely a bookkeeping issue; they are a profit drain and an operational bottleneck. When cash is stuck in receivables, hiring freezes are implemented, growth opportunities are delayed, and even routine operational expenses are put on hold.

And that's not all.

Businesses spend hours chasing down late payments, time that could have been spent on high-impact tasks that drive growth. Manual follow-ups only compound the impact, which is precisely why automated payment reminder messages are necessary.

Payment reminder messages prompt actions while preserving customer relationships. These timely payment reminders convey that the sender hopes to collect payments without causing any friction.

This guide provides a comprehensive overview of a payment reminder message, including examples to help collect overdue payments.

Why payment reminder emails no longer work

Emails have served as a means of business communication for several decades, but their utility for sending urgent reminders is diminishing. The distracted state of consumption we live in makes email's inherent weaknesses especially poor for something that requires immediate action, such as payment reminders.

Average open rates for emails hover between 40% and 50%, with a click-through rate (CTR) of only 2% to 6%. This means that a recipient may never see nearly half of every ten payment reminders sent. In stark contrast, messaging channels such as SMS and WhatsApp have near-perfect engagement.

For SMS, the average open rates go as high as 98%, with most messages being read within minutes of receipt. The overzealous spam filtering and inbox categorization in emails push essential messages to secondary folders, where they receive no attention.

Paying via email involves a series of steps: opening the email, locating the invoice, opening a new browser tab, accessing a portal, and then completing payment. Individually, each step provides ample opportunities for distraction. Email is asynchronous, which enables procrastination, a significant contributor to late fees.

On the other hand, text messaging is lightning fast in both grabbing attention and prompting action. Messages are delivered to the recipient’s personal device and include real-time notifications, with messages often being read in minutes, and a direct link to pay, which removes multiple steps and reduces the process to a single tap.

This instant messaging, paired with its low-friction nature, is why SMS consistently outperforms email as the best choice for time-sensitive reminders.

Why SMS is the best channel for payment reminders

In a sea of digital noise, where browsers are filled with tabs, emails that jam up inboxes, and social media notifications that keep bubbling up, SMS emerges as the leader of essential and critical time-sensitive communications.

For payment reminders, SMS has a significant advantage based on key benefits that lead to reliability and effectiveness.

  1. High open rates: On average, SMS has open rates higher than 98%. These high open rates mean your payment reminders will be viewed immediately, informing them of obligations, so they do not forget or delay.

  2. Cost-effectiveness: SMS has very low overhead and can reach any mobile phone in the world without the need for an internet connection or a smartphone.

  3. The personal touch: Since SMS messages go directly to an individual's phone, the communication appears more intimate. Therefore, SMS provides faster responses than other impersonal channels such as email communication.

  4. Direct communication: SMS messaging's conciseness makes a difference when it is received promptly, enabling timely payments and eliminating the need for aggressive follow-ups.

With SMS's delivery reliability, speed, cost-effectiveness, and personalized touch, it is easy to see why SMS can be crucial for optimizing payment networks and payment notifications - a job well-suited for urgent notifications and other scenarios.

Best practices for creating a compelling payment reminder message

Effective reminders are more than just texts: they are respectful, action-oriented messages. Here are some best practices to help you craft effective payment reminders:

1. Clarity and brevity

Given the character limitations of an SMS message, every word counts. Therefore, clearly state the purpose of your reminder, including invoice details, amount, and due date, right there, front and center. Also, avoid jargon where possible to ensure the message is clear.

2. Personalization

Impersonal payment reminder messages may not be effective. You can personalize messages at scale by adding customer names and specific details related to their account or invoice. This will make the message more relevant to the recipient, create trust, and show that you care about them as an individual and value their relationship.

3. Clear call to action (CTA)

The primary objective of a payment reminder text is to prompt payment. Thus, you need a clear and specific Call to Action (CTA). Tell the recipient exactly what you want them to do as their invoice remains unpaid. Consider using phrases such as "Pay now," "Click here to pay your bill," or "Go to [Link] to pay."

4. Convenience

Include a payment link and the invoice URL in the SMS. Streamline the payment process by adding a direct link to your secure payment portal. The customer will be able to click the link, verify their outstanding invoice, and pay it off right from their mobile device, increasing the probability of immediate payment. To make the process even smoother, ensure that the landing page to which you direct the customer is optimized for mobile.

5. Compliance and opt-in overlays

Compliance with regulatory processes is mandatory. Before sending SMS reminders, you need to leave no room for doubt and seek express consent from your customers to receive such communications from you. This is essential for compliance with regulations such as GDPR in Europe or TCPA in the USA.

11 SMS payment reminder templates for overdue invoices

Using an SMS marketing platform, businesses can implement an organized and automated payment reminder workflow. Here are 11 straightforward SMS payment reminder text examples, with detailed SMS templates for each scenario.

Template 1: First reminder (Pre-due date)

This payment reminder goes out a couple of days before the payment is due, and acts as a friendly reminder.

"Hi [Customer Name], just a friendly reminder that your payment of [Amount] for the outstanding invoice is due on [Date]. Pay here: [Link] "

Template 2: Due date reminder

This payment reminder text message goes out on the due date, providing a last prompt to make the payment on time.

"Your payment of [Amount] for [Service/Invoice Number] is due today. You can make your payment here: [Link] "

Template 3: First overdue payment reminder (1-3 days overdue)

This reminder text is for payments that are just overdue, polite but firm.

"Your payment of [Amount] for [Service/Invoice Number] was due on [Date]. You can settle your outstanding payment here: [Link] "

Template 4: Second overdue payment reminder (7 days overdue)

Increase the urgency around payment reminders for payments that are a week overdue.

"Reminder: your payment of [Amount] for the outstanding invoice is overdue by 7 days. Please pay now to continue service with little to no interruption: [Link]"

Template 5: Overdue with a late fee

When late fees become relevant, this message will apply to the customer.

"Urgent: your payment of [Amount] for [Service/Invoice Number] is 2 weeks overdue. A late fee of [Late Fee Amount] has been added. Pay now: [Payment Link]"

Template 6: Payment plan for outstanding payment

If your customer can't pay, asking them to pay their bill may be less effective than offering to help them pay.

"We noticed that your [Service/Invoice Number] has a payment overdue. Please get in touch with us regarding a payment plan if you need assistance: [Phone Number/Link]"

Template 7: Service suspension notice

A firm notice threatening suspension of service due to non-payment.

"Action Required: your service for [Service Name] will be suspended on [Date] if payment of [Amount] for [Invoice Number] is not received. Pay now: [Payment Link]."

Template 8: Final notice before overdue payments collection

Keep your customers informed about the consequences of their late payments.

"Final Notice: your outstanding balance of [Amount] for [Invoice Number] must be paid by [Date] to avoid escalation of action. Pay: [Payment Link]."

Template 9: Payment details and confirmation receipts

Reinforcing a positive experience is an essential aspect of customer service, even in payment.

"Thanks [Customer Name], we've received your payment of [Amount] for [Service/Invoice Number]. Your balance is $0."

Template 10: Customized reminder with customer service offer

You can provide a payment reminder text and also give a way to ask for help.

"Hi [Customer Name], your outstanding payment for [Service] is due soon. If you have any questions, please reply to this message or call us [Phone Number] at your earliest convenience. Pay: [Payment Link]."

Template 11: Recurrent charge reminder

With billable services that are based on subscriptions, it makes sense to give a heads-up before the next charge.

"This is just a reminder that your recurring charge for [Subscription Name] in the amount of [Amount] will be processed on [Date]. Manage subscription: [Link]."

These payment reminder text messages demonstrate the flexibility and power of SMS in sending payment reminder messages, particularly when combined with comprehensive SMS management platforms. When automated, personalized, and tracked, SMS offers a very successful and robust system for collecting payments.

How Messente can help optimize your payment cycle

By centralizing communication channels and delivering intelligent features, Messente helps you send payment reminders while optimizing the entire payment collection cycle.

Track real-time performance on the dashboard

It is imperative to measure the performance of your payment reminder message, even if this is done manually. Messente has a complete analytics dashboard that allows you to see your messaging performance metrics at a glance.

You can calculate conversion metrics such as:

  • Delivery rates: See how many messages made it into the right user’s inbox.

  • Open rates: For rich media messages (e.g., Viber, WhatsApp), track the number of messages that were opened.

  • Click-through rates (CTR): Measure how many customers clicked on the payment links in the message.

For instance, if one payment reminder message template had a low CTR percentage, you can understand where the payment reminder went awry. By staying on top of key SMS metrics, businesses can assess which payment reminders are most effective and which ones to refine further or drop. With a strategic approach, businesses can improve collection rates, which in turn increases their cash flow.

Refine your payment reminders with A/B testing

There is no place for guesswork when creating an optimized payment reminder message. With Messente, you can conduct A/B testing to determine which versions of your messages work best.

You can compare formal versus informal tone, or compare a call to action with an emphasis on urgency. Determine which approach works better by analyzing the timing of when you send the overdue invoice reminder, e.g., sending a quick reminder in the morning versus the afternoon, or on different days of the week.

Experiment with a branded sender ID versus a non-branded sender ID. Decipher the additional information to include in the reminder, such as payment links, FAQs about the payment process, and the consequences of late payments.

By running controlled experiments, you can confirm which messaging resonates with your specific customer segments. The Messente platform simplifies building and monitoring A/B tests, providing clear insights to help you make adjustments for future campaigns and ensure you're sending the right reminders to your customers.

Keep up with evolving regulatory standards

The regulatory framework for business messaging, particularly for financial communications such as overdue payment collection, is complex and highly dynamic. Messente's in-built compliance module can help you stay compliant with global and local regulations, including GDPR, TCPA, and other industry regulations.

Some of these compliance features include:

  • Opt-in/Opt-out management: Solutions that enable businesses to manage their customers' consent to receive messages, including simple opt-outs themselves.

  • Message templates: Directions and assistance to use pre-approved message templates, especially those for specific channels such as WhatsApp Business.

  • Audit trails: Audit trails for compliance, including extensive records of message deliveries and confirmation of customer interactions.

Messente is a partner and provides both technology and expertise that can help ensure your payment reminder campaigns are compliant yet profitable. We protect your business against legal and reputational penalties. This credibility and compliance can provide a sense of safety and protection, enabling the timely collection of an overdue invoice.

Unify your communication playbook

The core value of Messente is omnichannel messaging, sending across SMS, Viber, and WhatsApp, all from one API. Taking an omnichannel approach can significantly enhance the effectiveness of a payment reminder text. You can start with an SMS message for coverage, then switch to WhatsApp or Viber to enhance engagement.

You can easily integrate Messente with your CRM, ERP, or billing software, and access data such as due dates and invoice amounts automatically. This will help eliminate manual errors, save time, and streamline your workflow.

Automate notifications for accuracy

Timing is essential when scheduling a text message. Messente's automated notifications allow you to create rules for triggers (e.g., nudges before due date, due date alert, escalating payment reminder text after due date).

By setting up these proactive notifications, you gain predictable and consistent reminders to improve on-time payments preemptively. You can set up custom workflows with Messente’s user-friendly interface.

Number lookup to optimize costs

Sending messages to invalid or inactive numbers will only result in unnecessary spending. Messente's Number Lookup feature is a real-time number verification that checks activity, operator, and roaming status. It is a standalone REST API that can be integrated into your applications to clean your lists, reduce bounce rates, and improve cash flow.

Conclusion

We've learned that SMS is the best way to send payment reminders because of its great open rates, immediacy, and sense of personalization. But, when paired with Messente, you're not just sending SMS messages; you're rehauling payment collection altogether.

Messente's omnichannel messaging, smart automated notifications, and simple phone number and carrier validator work in unison to create an easy-to-use, robust solution for businesses. They help you transition from a reactive approach to overdue payments to a proactive one, ultimately improving your business's financial health and enhancing customer experiences.

Send SMS payment reminders with Messente to increase on-time payments, reduce collection burdens, and foster better customer relationships. It is all about making payments easy, efficient, and a little friendly!