President Obama's reelection campaign has been using Square's mobile POS system for some time as a part of its fundraising efforts, and now it's adding an additional mobile payment tool: SMS text messages.

According to a report by Time Magazine, the campaign sent a text message to supporters soliciting donations. Recipients of the message could simply text the dollar amount they wished to donate. But what makes this campaign different from other fundraising appeals using text messages is that it charges donors' credit cards, not their phone bills. That's a first for political campaigns.

For advocacy or emergency relief groups raising funds via text messaging, wireless carriers normally place the donated amount on a subscriber's bill for payment later. They also reduce their normal fee for that type of direct carrier billing in order to increase the amount of aid available. However, in the case of political campaigns, the carriers have not been willing to reduce their cut.

The Obama campaign is working around the billing fee by linking mobile numbers to credit card numbers already stored in its donor database. Donors are asked if they would like to keep their credit card numbers on file. The text messaging campaign uses those saved credit card numbers to collect future donations, saving the high direct-carrier-billing fees and making it easier for donors who no longer have to enter credit card information on their phones.

According to the Time report, the donor text campaign is working; the response rate was 20 times great than previous text message appeals.

The Obama campaign said the hope is that text messages can be sent to donors during "moments of emotional excitement to trigger the campaign finance equivalent of an impulse buy." So donors can expect messages during debates and after the president accepts his party's nomination.

For more on this topic, visit the bill payment research center.

Related Content

User Comments – Give us your opinion!
Products & Services

Cellum M-Commerce

http://global.networldalliance.com/new/images/products/6735.png

6735/Cellum-M-Commerce

mBanking

http://global.networldalliance.com/new/images/products/7041.png

7041/mBanking

MokiTouch - iPad and Android Kiosk App

http://global.networldalliance.com/new/images/products/5405.png

5405/MokiTouch-iPad-and-Android-Kiosk-App

Total-Mobile Swipe

http://global.networldalliance.com/new/images/products/6203.png

6203/Total-Mobile-Swipe

TIO Mobile Pay

http://global.networldalliance.com/new/images/products/4446.png

4446/TIO-Mobile-Pay

Multichannel Banking Platform - WinWebServer ( WWS)

http://global.networldalliance.com/new/images/products/6211.png

6211/Multichannel-Banking-Platform-WinWebServer-WWS

Agency Banking

http://global.networldalliance.com/new/images/products/7043.png

7043/Agency-Banking

mMoney

http://global.networldalliance.com/new/images/products/7039.png

7039/mMoney

Netswipe®

http://global.networldalliance.com/new/images/products/6343.png

6343/Netswipe

Multivendor SW ATM application - WWS Client

http://global.networldalliance.com/new/images/products/6213.png

6213/Multivendor-SW-ATM-application-WWS-Client

Wallet Wars
ATM & Mobile Innovation Summit
Request Information From Suppliers
Save time looking for suppliers. Complete this form to submit a Request for Information to our entire network of partners.