It’s the channel that works when everything else requires a download, a data connection, or an app account. Recent data shows SMS open rates at around 98%, with most messages read within minutes, a testament to its enduring importance in customer engagement strategies.

The power of SMS lies in its universality. It works on any device and under almost any network condition, independent of operating systems, apps, or data connectivity. As long as a phone receives a signal, SMS can be delivered. This unmatched reach is especially valuable for time-critical communication.

SMS serves a distinct and critical role in the omnichannel mix. While it has limitations like lack of encryption, absence of rich media, and no support for conversational commerce, it remains one of the most trusted and immediate communication channels for specific use cases.

When a message must absolutely reach a customer instantly, such as a One-Time Password (OTP), fraud alert, or delivery update, SMS’s reliability and universal accessibility make it an indispensable tool in any comprehensive communication strategy.

As the communications landscape evolves with new technologies and platforms, SMS continues to prove its value by doing what it does exceptionally well: reaching anyone, anywhere, reliably.

In Africa, where data connectivity varies across regions, SMS’s accessibility is particularly valuable. It requires no downloads and no data, making it the channel that reaches people reliably regardless of their device capabilities or network conditions.

Instant reach and universal trust

SMS offers distinct advantages in how customers engage with it. People tend to read SMS messages immediately. Over the years, users have come to associate texts with important, time-sensitive information – verification codes, alerts, critical updates – giving SMS a particular significance in moments that matter most.

This immediacy is valuable precisely because SMS serves a specific purpose in the communication stack. It optimises for reliable, instant delivery to every person with a mobile phone, making it the channel of choice when guaranteed, immediate reach is essential.

SMS is also one of the simplest and most effective ways to add an extra layer of security. Its continued impact relies on pairing the channel with ongoing awareness efforts from regulators, enterprises, and providers, enabling users to better recognise cyber‑threats and spot scams before they cause harm.

Across many sectors, SMS still underpins some of the most successful, high-impact use cases. For instance, in healthcare, SMS is used for vaccine reminders, appointment confirmations, health tips and chronic‑care check‑ins. These reduce no‑shows, improve adherence and keep patients engaged, without requiring apps or data.

In banking and financial services, SMS delivers OTPs, suspicious‑transaction alerts, card‑swipe notifications, withdrawal alerts and balance updates. These messages directly reduce fraud losses and strengthen customer trust.

A lifeline for underserved markets

In regions such as Africa, which have diverse connectivity landscapes, SMS remains a powerful tool. It does not rely on data, apps or even airtime, making it especially valuable in regions with weak connectivity or limited economic resources.

Its impact is less about personal chat and more about enabling essential communication and other messages that genuinely improve daily life.

Infobip’s 2026 Messaging Trends data shows SMS experiencing strong year-on-year growth across the African continent, with adoption accelerating particularly in financial services.

Finance and fintech now account for 63% of all African messaging volume, underscoring SMS’s critical role in enabling financial inclusion at scale.

For many people in rural areas, SMS functions as their bank statement. A mobile number becomes a financial identity, providing access to services without needing a bank branch, smartphone, or app. In that sense, SMS is more than a communication tool; it is a lifeline that enables participation in the broader economy.

While SMS continues to grow, messaging apps like WhatsApp are also surging in certain markets, including Tanzania (+226%) and Morocco (+92%), highlighting the need for a complementary, omnichannel approach.

Enterprises should consider combining SMS with other channels, because a strong omnichannel strategy does not require choosing one channel over another but rather using each for its strengths, ensuring messages land with the right urgency and intent.

The backbone of time-critical communication

SMS should carry time-sensitive alerts that must be seen immediately, while Over-the-Top (OTT) apps are better for interactive, conversational tasks like comparing products or asking questions while shopping. In a coordinated model, SMS serves as the reliable backbone that can be trusted to reach anyone, anywhere, instantly.

As we look to the future, SMS is becoming more modern, secure and intelligent. RCS and rich messaging add interactivity where available, while advances in identity verification, fraud prevention, and mobile‑number intelligence strengthen trust and security.

As telcos and regulators tighten sender verification and improve routing, SMS will only become more resilient, meaning that it is not fading but evolving and solidifying its role as a strategic, mission‑critical communication layer for modern businesses.

According to a new report by Juniper Research, over-the-top (OTT) business messaging traffic, led by platforms like WhatsApp, is projected to skyrocket from 390 billion messages in 2025 to more than 560 billion by 2027, marking a staggering 45% growth in just two years.

At the heart of this surge lies WhatsApp’s game-changing pricing model. The Meta-owned platform has slashed authentication rates, the kind used for one-time passwords (OTPs) and verification messages, by 50–90% compared to traditional A2P (Application-to-Person) SMS.

The move is no coincidence; it’s a calculated step to win over enterprises that have long depended on network operators for secure user communication.

“By first securing authentication traffic, WhatsApp is laying the groundwork to move into higher-value business messaging,” explained Molly Gatford, Senior Research Analyst at Juniper Research.

“Once enterprises are onboarded for authentication, WhatsApp must upsell to marketing use cases, where termination fees are far higher and the real revenue opportunity lies.”

Why it Matters to your Business

For years, mobile network operators dominated the enterprise messaging market through A2P SMS, powering everything from OTPs to promotional campaigns. But the rise of OTT players like WhatsApp, Telegram, and Viber has changed the rules, offering richer engagement, encryption, and global reach at a fraction of the cost.

In Nigeria and across Africa, where businesses are doubling down on digital transformation and financial inclusion, WhatsApp’s expanding footprint is poised to influence how banks, fintechs, eCommerce brands, and even government agencies communicate.

Imagine receiving your transaction alerts, delivery notifications, and customer support all through one WhatsApp chat, secure, fast, and cost-effective. That’s the future Meta is betting on.

The Operators’ Dilemma

Juniper’s report warns that mobile operators must rethink their approach — and fast. To remain competitive, operators will need to adopt “use case-based” pricing models for both SMS and RCS (Rich Communication Services), leveraging AI-powered analytics to classify and price messages more intelligently.

This strategy could help them highlight the added value of RCS, Google’s SMS evolution, which supports multimedia, interactivity, and verified business profiles, while maintaining telco control.

“By adopting a use case-based pricing strategy that is consistent across SMS and RCS, operators will enable enterprises to better assess RCS’s added value,” Gatford noted. “This helps operators retain business messaging traffic across these channels and avoid losing market share to OTT platforms.”

Looking Ahead: Opportunities and Risks

The A2P & Business Messaging Market 2025–2030 report, which includes forecasts across 61 countries and 146,000 datapoints, suggests that the coming years will see a tug-of-war between OTT disruptors and traditional network providers.

While WhatsApp may currently hold the pricing advantage, operators still have one critical edge, trust and infrastructure. Enterprises handling sensitive data, such as banks and public institutions, continue to rely on carrier-grade security and compliance frameworks that OTT players are still catching up to.

Still, the momentum is unmistakable.

As enterprises chase more personalized, real-time engagement with customers, the boundaries between messaging platforms and telecom networks are blurring.

The winners of this new era will be those who adapt fastest, whether it’s through collaboration, pricing innovation, or leveraging data-driven insights.

Insight:

With WhatsApp Business API already powering millions of customer interactions across Africa, Nigeria’s telecoms and fintech players face a strategic choice, compete, collaborate, or risk being sidelined in the next wave of digital customer engagement.

The Agency referred to section 6 of the NITDA Act 2007, which empower is to standardize, coordinate and develop regulatory frameworks for all Information Technology (IT) practices in Nigeria.

According to a statement signed by Mrs Hadiza Umar, Head Corporate Affairs and External Relationship at NITDA, the code of practice was developed in accordance with the NITDA’s mandates and subsequently President Muhammadu Buhari’s directive to NITDA to develop a Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries (Online Platforms), in collaboration with relevant Regulatory Agencies and Stakeholders.

“In line with the directive, NITDA wishes to present to the Public a Code of Practice for Interactive Computer Service Platforms/Internet Intermediaries for further review and input.

“The Code of Practice is aimed at protecting fundamental human rights of Nigerians and non-Nigerians living in the country as well as define guidelines for interacting on the digital ecosystem.

“This is in line with international best practices as obtainable in democratic nations such as the United State of America, United Kingdom, European Union, and United Nations”.

She said that the Code of Practice was developed in collaboration with the Nigerian Communications Commission (NCC) and National Broadcasting Commission (NBC), as well as input from Interactive Computer Service Platforms such as Twitter, Facebook, WhatsApp, Instagram, Google, and Tik Tok amongst others.

Other relevant stakeholders with peculiar knowledge in this area were consulted such as Civil Society Organizations and expert groups.

“The results of the consultations were duly incorporated into the Draft Code of Practice.    

“The new global reality is that the activities conducted on these Online Platforms wield enormous influence over our society, social interaction, and economic choices.

“Hence, the Code of Practice is an intervention to recalibrate the relationship of Online Platforms with Nigerians in order to maximise mutual benefits for our nation, while promoting a sustainable digital economy”, Umar said.

Additionally, the Code of Practice sets out procedures to safeguard the security and welfare of Nigerians while interacting on these Platforms.

“It aims to demand accountability from Online Platforms regarding unlawful and harmful contents on their Platforms. Furthermore, it establishes a robust framework for collaborative efforts to protect Nigerians against online harms, such as hate speech, cyber-bullying, as well as disinformation and/or misinformation.

“Similarly, to ensure compliance with the Code of Practice, NITDA also wishes to notify all Interactive Computer Service Platforms/Internet Intermediaries operating in Nigeria that the Federal Government of Nigeria has set out conditions for operating in the country”, she added.

These conditions address issues around legal registration of operations, taxation, and managing prohibited publication in line with Nigerian laws. The conditions are as follows:

1. Establish a legal entity i.e., register with Corporate Affairs Commission (CAC);
2. Appoint a designated country representative to interface with Nigerian authorities;
3. Abide by all regulatory demands after establishing a legal presence;
4. Comply with all applicable tax obligations on its operations under Nigerian law;
5. Provide a comprehensive compliance mechanism to avoid publication of prohibited contents and unethical behaviour on their platform; and
6. Provide information to authorities on harmful accounts, suspected botnets, troll groups, and other coordinated disinformation networks and deleting any information that violates Nigerian law within an agreed time.

The Draft Code of Practice is available on the NITDA website for review and comments from the public.

“The Federal Government wishes to reiterate its commitment towards ensuring Nigeria fully harness the potentials of the Digital Economy and safeguard the security and interest of its citizens in the digital ecosystem”, Umar added.