Short message service (SMS) or text messaging, as it is commonly referred to, is a service available on mobile devices that allows end users to send and receive simple messages. SMS has been in existence since the early 90s and is widely available on a variety of mobile technologies.

Short message service (SMS) or text messaging, as it is commonly referred to, is a service available on mobile devices that allows end users to send and receive simple messages. SMS has been in existence since the early 90s and is widely available on a variety of mobile technologies. SMS has grown in popularity due to the ease of use and low cost of sending messages. On average, the cost to send or receive a message is 10 cents. This cost has contributed to the astronomical growth of SMS messaging worldwide, which has increased from 17 billion messages in 2001 to over 500 billion messages in 2004, or approximately 100 messages for every person on the planet. While adoption in the United States has been a little slower, the estimates for SMS usage in 2003 were 13 messages per month per mobile user.

SMS is a store-and-forward technology, meaning the messages are sent to a central repository and are delivered as the mobile devices contact the network. Additionally, SMS messages cannot be denied by the end user, so if the equipment is capable, the opportunity to receive text messages exists. The combination of widespread use and changing technology are enhancing the overall impact of SMS on society.

SMS can be seen through the multitudes of ads, radio shows, and television shows that promote SMS messages to allow interaction. A less common use for this technology, but one which has proven to have an incredible impact, is the use of SMS during times of catastrophe or natural disaster. For example, during and immediately after Hurricane Katrina pummeled the Gulf Coast of the United States, SMS was the only mechanism available for much of the country to contact those in the affected areas. While at times the system is unreliable, it has proven to be extremely useful. PassTime, for example, has adopted SMS as a new and successful way to deliver device codes from the dealer to the end user. By incorporating SMS in an innovative way, we have reduced the amount of interaction necessary between a dealership and end user, while increasing the ways a code can be sent to an end user. We have also found that SMS is the ideal counterpart to technology that can be used by the end user to call and get a code from an automated system. While the impact and innovation are incredible in their own right, the future of SMS and mobile messaging is even brighter.

Currently, mobile device users have the ability to access a variety of different media from the devices they carry on a daily basis. From maps to messages with richer content like video and audio, the use of SMS will only grow from its current levels of adoption. Keeping these advancements in mind, we intend to enhance the messaging options and opportunities by utilizing this richer content. For example, allowing dealers to send a variety of message types to end users, and eventually offer services that allow end users to interact more with their dealers and lenders. While SMS stands for short message service, it is clear that with innovative use it is long on potential. Stan Schwarz, CEO and founder of PassTime, is the market leader of starter-interrupt payment protection systems. PassTime has now grown its installed base to over 2000 BHPH dealerships nationwide. He can be reached at 888-547-9017