SMS payments platform for subscriptions?
payment-gateway, ruby, ruby-on-rails, sms, sms-gateway
Solution
Without knowing the full details of what WhitePages.com offer it sounds like they're using Premium SMS as a method of collecting payment from a mobile.
After you've entered your telephone number, they'll send you a text with the originator set to a premium shortcode (rather than from a long number). The reply you send back to the premium shortcode is deemed your acceptance to be charged more than your standard network SMS rate. The amount of the charge can vary but should be made obvious to subscribers before they are charged. This Mobile-Originated reply text (MO) is what causes the charge to be taken from your mobile telephone number bill.
Premium subscription services can then subsequently generate further charges whilst the user is still subscribed by sending messages from the premium shortcode. The act of receiving these messages causes a charge to be applied to your mobile telephone bill. These are deemed Mobile-Terminated texts (MT).
Premium SMS is not a simple solution for collecting payment for a number of reasons.
- You often only receive a small percentage of what the user is being charged on their bill as the mobile networks keep a cut for offering the service.
- As this relies on premium shortcodes you may have to accept you'll have different numbers for each country you want to operate in as you'll have to organise premium shortcodes in each country.
- There's different regulations regarding Premium services that you need to be aware of in each country. For example, users need to be able to unsubscribe / opt-out of premium services once subscribed so premium services often have to comply with receiving 'STOP' and 'STOP ALL' messages from users.
As far as I know, Twilio doesn't support premium shortcodes at this time. There are other SMS Gateways which do support premium SMS but you won't get a single solution to fit any country you wish to operate in. Interacting with this kind of system is usually no more complex than sending and receiving normal SMS so the task of creating this with a Ruby on Rails app should be no more complex.
Normal SMS is pretty much globally universal. Premium SMS is an additional country specific feature.
Problem
On WhitePages.com they have a mechanism in place that facilitates payment by entering your telephone number. After you enter your number, you get an SMS that instructs you to enter "GO" in order to complete the transaction. Following that reply with the purchase you've made, you get another message suggesting that for a certain monthly fee you can use the service in an unlimited fashion. I had not seen anything with quite those dynamics before and I'm curious of what service(s) one would use to construct a payment system like this for a Ruby on Rails app? I am particularly interested in a platform that allows this kind of payment from as many countries as possible as I currently use Twilio for SMS messaging on another app.