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Home - Industry blog - SMS API Explained: Types, Features & Use Cases
Reviewed by : Prasanta Raut
According to Grand View Research, the U.S. SMS marketing market reached USD 2.86 billion in 2023, while experts predict it will expand at a 20.8% annual growth rate through 2030.
So, what’s this hype around SMS APIs?
SMS APIs are the heart of the business conversion rate so far. They make it incredibly easy for businesses to send messages to customers, and that too, automatically. There is no need for technical skills. Just real and practical ways to send SMS texts.
In this blog, we will break down the nuances of the SMS APIs, how they work, the types, how industries use them, and more.
Table of Content
An SMS API (Short Message Service Application Programming Interface) is a tool to embed SMS messaging functionality in various applications. It can include websites and systems. allows
The technology allows businesses to automate text message communication. It allows the companies to run programs that send and receive messages. There is no need for human assistance for interactions with customers and stakeholders.
The SMS API can automate all SMS functionality without manual phone intervention. The functionality proves essential for businesses that need to send large numbers of business texts and execute targeted SMS campaigns.
The system also enables two-way user communication. It is a combination of inbound SMS features and shortcodes for effective deliver of messages.
SMS API has a simple process to send group texts. Let’s decode it in the following steps:
Your application uses API calls to reach SMS provider servers during SMS transmission. The request to the SMS API requires the necessary details. It includes the recipient’s phone number, message content, sender ID, and scheduling parameters.
The SMS API provider transforms your request. After receiving it, the format is changed to telecom network-compatible. Systems make complicated routing decisions to find optimal delivery routes. It is done through the examination of recipient positions together.
There would be carrier agreements and delivery sequence rules incorporated with it. Then, the system verifies messages against the compliance rules that apply to each specific region.
The Mobile Network Operators (MNOs) receive formatted messages through established connections. MNOs perform the last stage of delivering messages to recipients’ devices.
The right implementation of an SMS API enables global message delivery within seconds. It ensures urgent customer information reaches its destination quickly.
The SMS API tracks message transmission and delivers status reports about the delivery process. It generates message states that fall into four typical categories. They are: sent, delivered, failed, or pending delivery. The delivery status is then tracked for performance monitoring.
For instance, a bank has to send an ‘alert message’ to the customers. It will complete the process to deliver. But if it fails, the system can automatically implement backup communication channels.
The SMS APIs have additional features to send SMS. It has various types that an organization can choose depending on their need. Let’s look into them:
One-way SMS APIs serve only outbound messaging functions. It allows businesses to transmit text messages to customers without requiring any responses. The main use of these APIs exists in notification systems and promotional campaigns. This is because they lack the need for interactive responses.
For instance, the airline sector can use one-way SMS APIs to deliver flight delay notifications to their passengers. They can proactively reach customers and deliver flight status updates via SMS.
We can look into the real-life example of Southwest Airlines. It has been able to reach out to passengers while decreasing incoming phone calls. The contact center operations runs smoothly too.
Two-way SMS APIs let businesses interact with customers through text messages. It allows both message-sending and receiving capabilities. Through bidirectional communication, companies can obtain feedback. They can respond to inquiries and deliver customer support directly through text messages.
A real-life implementation of the two-way SMS API can be:
A healthcare provider implements two-way SMS technology to verify patient appointments through messaging services. Patients who get appointment reminders have the option to confirm. They can reply with ‘Yes’ and ‘No’. It will achieve higher appointment attendance rates.
The Bulk SMS API system enables businesses to transmit large numbers of messages at once. These messages can reach thousands or millions of recipients at the same time. The APIs contain features for campaign management, audience segmentation, and delivery optimization. Thus making it suitable for mass communication success.
Imagine a retail chain having to reach out to 500,000 customers to announce the flash sale. They can boost their conversion rate just by sending a bulk text message.
The transactional SMS API system sends urgent business-critical communications. It activates upon predefined user-triggered events or system-based triggers. The SMS API platform supports order confirmations as well as delivery updates.
Additionally, it can handle the account alerts and one-time passwords (OTPs) too. The transactional SMS API delivers messages with greater reliability and speed. It exceeds the delivery performance of promotional SMS.
Wells Fargo uses SMS OTPs to enable cardless ATM withdrawals. Users can authorize ATM transactions through their registered phone number. They must enter the temporary verification code to proceed. It helps in preventing millions in potential fraud losses.
The main purpose of Promotional SMS APIs is to deliver marketing content. It can include secial offers, discounts, new product announcements, and event invitations. Such APIs introduce scheduling capabilities, testing functions, and performance metrics to increase marketing results.
Imagine a beauty brand launching a new product line. They can use promotional SMS API to deliver exclusive early access to its most engaged customers. The personalized messaging approach would lead to a 34% click-through rate and generate $175,000 in first-day sales.
The SMS APIs have various functions. That is why the features are highly compatible to use. Some of them are:
SMS Application Programming Interfaces currently function with cloud-based systems. Its capabilities automatically adjust according to the amount of messages that are demanded. The more SMS APIs have an elastic nature.
It enables businesses to transmit small numbers of messages or large volumes of messages without experiencing any performance decline. For instance, an e-commerce platform can increase their daily text message volume. It can accelerate from 50,000 to over 3 million during Black Friday 2025 within a few hours.
The delivery reporting system shows complete message status information. It uses precise timestamps for message sending, delivery, and failure events. The information from delivery status will help businesses prevent communication breakdowns and solve technical problems promptly.
Real-time delivery tracking through SMS supports crisis management teams. It is used to verify emergency notification success when done correctly. This is because 98% of recipients receive information within 90 seconds. The transparent delivery tracking enables teams to find and resolve delivery problems by using backup communication methods.
The system enables users to determine when their messages should be sent through date and time specifications.
Businesses use message scheduling features to create advance communications. In this way, they can send out at their chosen optimal delivery times. The SMS API features provides essential value to businesses that operate internationally. They can conduct marketing initiatives with specific timing requirements.
For a global educational institution, maintaining attendance number is important. By sending webinar reminder alerts 24 hours before and following it up with reminders will rise in attendance numbers. Their SMS API automation also eliminates human errors and maximize staff efficiency in this sequence.
Phone Number Masking serves as a protection method. It assigns a virtual phone numbers to conceal sender identities. It functions by assigning short-term virtual phone numbers to communications, which safeguards privacy for customers and staff members. The feature plays a crucial role in platforms that unite multiple parties. Some of them can be delivery services, rideshare companies, and marketplace programs.
We can take an example of a food delivery service. They used their SMS API to provide number masking which protected personal phone numbers of delivery person as well as customers. This reduced privacy complaints, and increased driver satisfaction ratings.
The advanced SMS API provides worldwide messaging capabilities together with automatic rules for complying with regional regulations. The platform enables businesses to connect with global customers by maintaining compliance with local consent requirements, opt-out protocols, and sending time regulations.
The travel booking platform sends booking confirmations to customers in 43 countries through a single SMS API. Through automatic message adaptation, the API ensures compliance with GDPR in Europe and TCPA in the United States, which saves the company $430,000 in annual potential compliance penalties.
The API supports Unicode characters for global messaging and enables users to send MMS content. Users can use Unicode characters to deliver multilingual messages. This versatile features provide the extend communication beyond monotonous text messaging.
For instance, a multinational retailer implemented unicode to run 12 language SMS campaigns. It produce a decent engagement on the MMS among customer segments. They could easily target to people who spoke different languages. Their promotional messages with MMS product images achieve higher conversion rate in comparison to messages with only text content.
The system will attempt repeated message delivery through other routes when primary delivery routes prove unsuccessful. The implementation of redundant delivery systems enhances overall success rates. Especially in areas where telecom infrastructure is unreliable.
For instance, a platform that sends market alerts through SMS implemented failover logic within their API. The system used network congestion detection to automatically redirect messages through secondary carriers. It resulted in 99.7% delivery success of time-sensitive alerts to customers.
The API key and authentication features provide protection for messaging infrastructure. It blocks abuse attempts and unauthorized entry. API authentication includes the use of API keys with encryption for ensuring sensitive data protection.
For instance, the healthcare provider handles 30,000 patient messages per day. They can establish rigorous authentication systems for their SMS API. This way, the data security framework catches the potential data breaches and successfully protect patient information. It maintains the compliance with healthcare privacy regulations.
We have already known th functionality of a SMS API. Now, let’s breakdown the benefits of it.
SMS technology provides immediate phone-based delivery of information to users. Thus making it suitable for urgent communications. The text message delivery method bypasses both internet dependency and app installation requirements to reach users.
The open rate for text messages is exceptional. Recipients read them at a rate exceeding 90% within the first three minutes of receiving the message. SMS stands as the most dependable communication method because its visibility rate reaches almost 100%.
Up-to-date SMS APIs provide businesses with straightforward integration capabilities. They have Representational State Transfer (REST) interfaces and Software Development Kit (SDK) programs. With these connections, businesses can add messaging features seamlessly into their current operational processes.
SMS provides a higher return on investment than any other communication method. SMS messaging enables businesses to communicate with their customers at a lower cost. The cost is determined by the volume of messages sent and the regional rates. It may range from $0.01 to $0.05 per message.
SMS APIs automate regular communications. It enables staff to avoid performing manual messaging duties. The automation system provides regular delivery times and prevents human mistakes. It will direct the employees to handle other valuable work responsibilities.
SMS delivers essential security features through fast and dependable communication channels. With this universal phone, accessibility can be verified by codes and authentication messages. Unlike app-based authentication, SMS works on any mobile phone without additional software.
There are various sectors that can utilize the features of SMS APIs. Some of them are listed below:
SMS APIs support e-commerce businesses at every stage of the customer experience. It starts with order confirmation and ends with post-purchase communication. SMS delivers instant messages that work best for time-sensitive promotions. They can be flash sales, limited-time deals as well as inventory notifications.
SMS APIs serve financial institutions by enabling secure user authentication. The message handles crucial parts. Those are transaction alerts, fraud notifications, and account updates. SMS provides an optimal solution for financial communications. It is because of the delivery of instant messages to everyone. With the use of mobile phones, it is accessible at all times.
The healthcare sector utilizes SMS APIs primarily to send automated appointment reminders. The other functions include medication alerts, test results notifications, as well as preventive care alerts to their patients. The communications system leads to both cuts down administrative work and decreases missed appointments.
Through messaging APIs, software companies verify accounts by sending security alerts. It provides system notifications and service updates to its users. SMS delivers critical information to users even when users are not actively using the application.
Through SMS marketing, marketers can run promotional activities and loyalty initiatives. The SMS gateway will allow businesses to conduct contest surveys as well as event invite campaigns. It becomes easy for consumers to send and receive an instant message.
Your choice of SMS API for business messaging depends on the evaluation of multiple essential elements. Some of the best-fit SMS solutions can be:
In order to choose an SMS API provider, check on the delivery rates and SMS gateway infrastructure. Reliability is the key to reaching customers in real-time. Whether it is promotional SMS or transactional SMS, the message carrier should be trustworthy.
The businesses have to ensure that the API offers global reach. No matter the region, it should support shortcodes and sender IDs. Not just that, you have to look for the support of inbound SMS worldwide with cost being minimum.
The service providers should have the option to opt for the bulk SMS APIs in case you increase the user base. It should support the SMS communication volume while launching product updates or other activities.
The SMS API pricing depends on the value that the server is providing. The price will depend on the facility you prefer. The two-way SMS will cost more than the one-way. Similarly, the mass text and alert reminders have their own pricing range.
The best type of provider offers 24/7 help for real-time problem resolution. They also provide an extensive content library support to the business. Moreover, they help you understand the navigation of the API.
If the API is great, it allows developers to have easy user management. They function well on both the web and mobile. So, when you are onboarding the SMS API integration, make sure it also operates on voice API for voice calls.
Check if the SMS API provides essential compliance tools. It will include consent management capabilities and data security. You should easily be able to collect, store, and manage user permissions for the business texts.
In a world that is mobile, fast, and keen, SMS APIs keep your business seen!
Everyone, from children to old people, uses mobile phones. Businesses can use SMS APIs to achieve competitive advantages by accessing customers from them.
SMS APIs generate outstanding returns on investment for companies that use them properly. It can be utilized for transactional alerts, two-way customer service, promotional campaigns, and others.
Let SMS APIs bring power and flair to your business!
The features of SMS are: no need for an internet connection to send messages, achieve almost 100% open rate, instant message delivery, and more.
RESTful APIs are available through SMS service providers to handle different texting features.
Some of the types of SMS are one-way, two-way, transactional, and promotional SMS messages.
Google does not provide an independent SMS API solution. However, it provides Firebase Cloud Messaging for push notifications.
It is technically possible to make your own SMS API. But it requires knowledge of telecom protocols, and direct relationships with mobile carriers.
SMS API has multiple layers of security. It has encrypted connections, API authentication, and secure message transmission.
Prasanta, founder and CEO of Dialaxy, is redefining SaaS with creativity and dedication. Focused on simplifying sales and support, he drives innovation to deliver exceptional value and shape a new era of business excellence.
Prasanta Raut