How MvIP (Messaging-via-IP) Will Change the A2P (Application-to-Person) SMS Landscape

Published September 09, 2015 by Chris Moore

In the past several years, we have seen a massive shift in the chat and messaging landscape, as it expands from Person-to-Person (P2P) messaging, towards Application-to-Person (A2P) messaging.

With this expansion comes much speculation around A2P via SMS, with claims that MvIP will bring on the demise of A2P SMS. However, Nexmo firmly believes that A2P SMS channel will continue to have a steep growth curve in the years ahead. In fact, this channel will be a significant portion of IDC’s $7.5B forecast for the worldwide cloud communications channel by 2018.

With the launch of Nexmo’s Chat App API, we introduced an enriched chat app experience that adds rich media experience to the end user. But we believe there is more to the Chat App API story – it’s about enriching the one-to-one conversations between brands and their users.

Consumers no longer need to close their messaging app and open their branded app to purchase products and communicate with their favorite brands; instead, the entire brand engagement takes place within the messaging app. This brand presence has not frightened away users, quite the opposite. In fact, over 8 million companies now communicate with consumers over WeChat in China, where the chat app has virtually replaced branded apps. We have also seen this spread to Japan/Taiwan/Thailand on LINE and in Korea on Kakao.

End-users have personal communication preferences and these preferences are different in every market. Nexmo enables consumers to choose their preferred channel of communication. For example, if I’m traveling in another country, I may have turned my cellular service off and roam on my data plan. I can then receive my airline flight status communications in a richer media format over Viber, LINE, WeChat, etc., providing a more seamless brand interaction.

We will soon live in a world where everything from tailored marketing, ecommerce, to two-way social customer care, can be accessed right within your favorite messaging app. Our vision behind the Chat App API is to simplify the accessibility of chat app audiences for brands and CRM platforms through rich, targeted communications channels (including SMS and Voice).

To read more about our vision for the Chat App API or to sign up for API access, please click here.

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