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February 13, 2024

CPaaS Providers Embrace RCS & WhatsApp: Messaging Trust Shift

XConnect, a distinguished Somos Company specializing numbering intelligence solutions, collaborated with Mobilesquared

In a dynamic landscape where communication platforms constantly evolve, a recent study by XConnect and Mobilesquared sheds light on the changing dynamics of trust within the realm of Communication Platform as a Service (CPaaS) providers. The findings reveal a notable shift in trust from traditional SMS towards emerging channels like Rich Communication Services (RCS) and WhatsApp, with SMS trust projected to drop by nearly 25% between 2023 and 2025.

The report, aptly titled 'Do We Still Have Trust in Communications?', delves into the nuanced relationship between CPaaS providers and messaging channels. Conducted between July and November 2023, the survey encompassed insights from 59 CPaaS providers worldwide, offering a comprehensive outlook on the evolving landscape.

While SMS has long been hailed as the cornerstone of communication, the research indicates a decline in trust over the forecasted period. This decline is attributed to factors such as rising concerns over fraud and escalating costs, signaling a need for proactive measures within the messaging ecosystem. Despite these challenges, SMS retains its position as a prevalent messaging channel, albeit facing intensified competition from RCS and WhatsApp.

Looking ahead, the report foresees a significant leap in trust for RCS, expected to reach 75.1%, and WhatsApp, projected to garner 41.7% trust by 2025. This shift underscores the evolving preferences of consumers and businesses alike, urging CPaaS providers to adapt their strategies accordingly.

Tim Ward, Chief Strategy Officer at XConnect, emphasizes the pragmatic perspective on SMS, acknowledging its enduring relevance while advocating for a balanced consideration of alternatives. Ward highlights the importance of addressing termination rates, traffic delivery, and fraud management to optimize revenues and profits, positioning XConnect as a pivotal player in delivering comprehensive solutions through its number intelligence.

Nick Lane, Chief Messaging Officer at Mobilesquared, echoes the sentiment, emphasizing the imperative for CPaaS providers to confront fraud head-on to propel the industry forward. With concerns gravitating towards potential threats like smishing/phishing, Lane underscores the urgency for proactive measures to mitigate risks and sustain industry momentum.

As CPaaS providers brace for evolving challenges, the report underscores the critical role of effectiveness in driving channel selection, with trust emerging as a pivotal factor. Amidst shifting paradigms, the industry stands poised for transformation, propelled by innovation and a steadfast commitment to fostering trust in communication channels.

In an era defined by rapid digital transformation, the journey towards redefining trust in messaging platforms unfolds, beckoning CPaaS providers to embrace resilience, innovation, and collaboration to navigate the evolving landscape with confidence and foresight.

Neil Hodgson Coyle
Neil Hodgson-Coyle
Editorial chief at TechNews180
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