educational

SMS for Dummies

Editor's Note: The ongoing woes facing many adult webmasters searching for stable billing mechanisms leads many to consider "alternative" billing mechanisms. For the non-US market, one of the most attractive options is Premium Rate SMS. Here's a closer look:

The fact that SMS (Short Message Service) was almost added as an afterthought when the GSM cell phone standard was first conceived, makes the phenomenal popularity it enjoys all the more remarkable, with more than a staggering 20 billion SMS being sent each month – and it's still growing...

GSM (Global Standard for Mobile communications) is the standard used by 80% by the world's cell phone users, however, it was not adopted by the USA, resulting in the following situation. Europe: Many different countries, one standard. USA: One country, several standards. This is why SMS, otherwise known as text messaging, never took off in the States.

In the early days, the GSM cell phone operators even had a "gentleman's agreement" to terminate each other's SMS at no charge. Hence the abundance back then of free web-based SMS Services. Now data traffic accounts for an increasing proportion of the network operator's revenues.

SMS' popularity can be attributed to the fact that it's direct and immediate. No waiting for hours while you wait for someone to return your voice message. Furthermore, it's discreet - unlike loudly talking into your handset in public. It's also generally cheaper than a long phone call.

The 'product' itself is spectacularly unspectacular. Only up to 160 characters of text. Unless, that is, it is used to carry small amounts of data – hence the popularity of the hugely successful ring tone and logo "cell phone tuning" market.

Part of this can be attributed to the ease of purchase. The customers pays via their phone bill (i.e. on credit), and product delivery is immediate. A neat billing/delivery cycle – all with no charge backs!

The good news is, you can now capitalize on SMS' popularity by using it as a billing mechanism for surfers to gain access to your website(s). This way, the cheap tour takers who never converted before will actually become paying customers, and they will love you for it – no more messy credit card details (if they have one) – and, above all, their anonymity is maintained.

This way you could offer, for example, 24 hours of access to your member's area for €4 – a good solid currency nowadays! If they like what they see, they can sign up with your current credit card processors in the normal way.

This is achieved via the Premium SMS (PSMS) billing mechanism. This can be compared to a 1-900 number.

To use PSMS, the end-user 'texts' his or her order reference number to a five digit short code, which is charged at a premium. They immediately receive an SMS back containing the new reference number needed to 'unlock' your members area. You remain in full control, and dictate both the price points and the length of access that the customer will receive.

Unfortunately, PSMS is not yet a viable billing option in the USA, but is supported in most other developed markets.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

How to Build Operational Resilience Into Your Payment Ecosystem

Over the past year, we’ve watched adult merchants weather a variety of disruptions and speedbumps. Some even lost entire revenue streams overnight — simply because they relied too heavily on a single cloud provider that suffered an outage, lacked sufficient redundancy and failover, or otherwise fell short when it came to making sure their business was protected in case of unwelcome surprises.

Cathy Beardsley ·
opinion

Building a Stronger Strategy Against Card-Testing Bots

It’s a scenario every high-risk merchant dreads. You wake up one morning, check your dashboard and see a massive spike in transaction volume. For a fleeting moment, you’re excited at the premise that something went viral — but then reality sets in. You find thousands of transactions, all for $0.50 and all declined.

Jonathan Corona ·
opinion

A Creator's Guide to Starting the Year With Strong Financial Habits

Every January brings that familiar rush of new ideas and big goals. Creators feel ready to overhaul their content, commit to new posting schedules and jump on fresh opportunities.

Megan Stokes ·
opinion

Pornnhub's Jade Talks Trust and Community

If you’ve ever interacted with Jade at Pornhub, you already know one thing to be true: Whether you’re coordinating an event, confirming deliverables or simply trying to get an answer quickly, things move more smoothly when she’s involved. Emails get answered. Details are confirmed. Deadlines don’t drift. And through it all, her tone remains warm, friendly and grounded.

Women In Adult ·
opinion

Outlook 2026: Industry Execs Weigh In on Strategy, Monetization and Risk

The adult industry enters 2026 at a moment of concentrated change. Over the past year, the sector’s evolution has accelerated. Creators have become full-scale businesses, managing branding, compliance, distribution and community under intensifying competition. Studios and platforms are refining production and business models in response to pressures ranging from regulatory mandates to shifting consumer preferences.

Jackie Backman ·
opinion

How Platforms Can Tap AI to Moderate Content at Scale

Every day, billions of posts, images and videos are uploaded to platforms like Facebook, Instagram, TikTok and X. As social media has grown, so has the amount of content that must be reviewed — including hate speech, misinformation, deepfakes, violent material and coordinated manipulation campaigns.

Christoph Hermes ·
opinion

What DSA and GDPR Enforcement Means for Adult Platforms

Adult platforms have never been more visible to regulators than they are right now. For years, the industry operated in a gray zone: enormous traffic, massive data volume and minimal oversight. Those days are over.

Corey D. Silverstein ·
opinion

Making the Case for Network Tokens in Recurring Billing

A declined transaction isn’t just a technical error; it’s lost revenue you fought hard to earn. But here’s some good news for adult merchants: The same technology that helps the world’s largest subscription services smoothly process millions of monthly subscriptions is now available to you as well.

Jonathan Corona ·
opinion

Navigating Age Verification Laws Without Disrupting Revenue

With age verification laws now firmly in place across multiple markets, merchants are asking practical questions: How is this affecting traffic? What happens during onboarding? Which approaches are proving workable in real payment flows?

Cathy Beardsley ·
opinion

How Adult Businesses Can Navigate Global Compliance Demands

The internet has made the world feel small. Case in point: Adult websites based in the U.S. are now getting letters from regulators demanding compliance with foreign laws, even if they don’t operate in those countries. Meanwhile, some U.S. website operators dealing with the patchwork of state-level age verification laws have considered incorporating offshore in the hopes of avoiding these new obligations — but even operators with no physical presence in the U.S. have been sued or threatened with claims for not following state AV laws.

Larry Walters ·
Show More