Rich Communication Services (RCS) for Business is changing the debt collection approach for financial services, utilities, telecommunications providers and government organisations.
Debt collection has long relied on channels like SMS that have broad reach but are designed for broadcasting rather than engaging. By combining SMS’ reach with the rich, interactive experience consumers expect from modern apps, RCS helps you move from impersonal notifications to trustworthy conversations that strengthen relationships – even at sensitive times.
Why traditional collection messaging falls short
One of the biggest barriers to successful debt collection is trust, and SMS has an inherent trust gap. Consumers are increasingly ignoring messages from unknown numbers and are increasingly cautious about clicking links.
Then there are the customer journey limitations. SMS provides little opportunity to explain repayment options, and customers must leave their messaging app to complete most actions. You also can’t track whether messages have been read or acted on, limiting your ability to follow up effectively.
Why RCS outperforms SMS for debt collection
RCS is the next generation of SMS, giving you the ability to provide a complete self-service payment experience inside the messaging conversation.
It essentially combines the best features of SMS, WhatsApp, Facebook Messenger and iMessage. It allows for personalised messaging, read receipts, automated action and reply buttons and high-resolution images and video via Rich Cards and Carousels. It works directly through the user’s messaging app, so you’re not relying on recipients using the same app or having the same device. You can therefore reach customers directly on their native messaging app – but with branded, interactive and media-rich messages that provide a significantly better experience.
From a debt collection perspective, this provides key benefits:
- Higher trust: Messages come from your verified business profile with your logo. This makes them more credible because customers can immediately recognise you, reducing phishing concerns and making them more likely to engage with your legitimate payment requests.
- Personalised support: Images, videos and carousels can clearly explain payment plans or support options, and include payment reminders and account information.
- Self-service capability: Interactive buttons allow customers to call, pay, schedule reminders or access support with a single tap.
What the RCS collection experience looks like
Imagine a customer receives a payment reminder. Instead of an anonymous text containing a shortened URL, they receive a branded message from your organisation, complete with your logo and sender profile. The message can include:
- The outstanding balance
- Available repayment options
- A “Pay Now” button
- A “Speak to an Advisor” option
- A “Request More Time” action
- Frequently asked questions
- Contact details for support
Everything is presented in a familiar way. The customer can tell the message is genuine because it comes from your verified business account, and all information they need is right there.
The result: a lower-friction experience that encourages faster action while reducing inbound calls.
What if RCS isn’t available?
No single channel reaches every customer, which is why RCS should be part of a broader communication strategy.
One of Engage Hub’s strengths is that you can automate intelligent channel fallback, managed through a centralised platform. If RCS is unavailable, the conversation can seamlessly continue through WhatsApp and then fall back to SMS if needed. You can also tailor fallback channels based on customer preferences.
This ensures customers receive payment communications through the best available channel, maximising engagement rates while minimising campaign management hassle.
Higher engagement leads to higher payment rates
RCS isn’t just about aesthetics, it’s about reducing the number of steps customers must take to complete a payment or engage with support. The easier the journey, the more likely they are to act.
Importantly, you also gain access to engagement data that you can’t get from traditional SMS, like message delivery, reads and interactions. This helps you design more intelligent collection strategies, with communications optimised based on customer behaviour. Instead of assuming a reminder has been received, you can identify where customers are engaging, where they’re dropping off and when you need to use alternative channels.
And our client‘s results below illustrate this.
Real-world results from RCS collection campaigns
A recent Engage Hub deployment with a tier 1 Brazilian telecom provider, delivered impressive results across debt recovery campaigns at scale:
- More than 238 million RCS messages were sent across 102 campaigns
- Campaigns achieved an average 73.44% delivery, view and click rate
- Message performance improved by 3% compared with previous approaches
- The programme generated an estimated £6.37 million in recovered debt since November 2025
- One campaign alone recovered £870,000.
These results demonstrate that richer, more trusted customer interactions can translate directly into improved collection outcomes.
When debt collection becomes a conversation, everyone wins
Debt collection is no longer about sending reminders, it’s about using the touchpoint as an opportunity to deliver the best possible customer experience. That way, everyone wins: customers trust you more, and because it’s easier for them to resolve outstanding balances, your collection outcomes improve.
So why not test RCS for your next campaign?
Contact us to learn how RCS can improve your debt collection – or request a demo to see it in action.
