Great on Paper, Risky in Practice

Let’s say you’re responsible for the new customer onboarding process at a financial service provider. Your customer just opened a new account. You want to make a great first impression, so you send a welcome message through WhatsApp. Sounds easy enough—except their phone isn’t connected to the internet. Or they haven’t installed the app. So the message doesn’t go through.

What happens next? Your fallback SMS kicks in, but now you’ve paid for both. And the customer? They’re still waiting.

IP messaging has its place. It’s great for rich content and app-savvy users. But when it comes to reliability, reach, and cost control, the picture is more complicated than it looks on paper. For a broader look at why SMS continues to thrive—even in a world of apps—check out SMS is here to stay.

The “Free” Messaging That Isn’t

IP messaging often gets pitched as the cheaper, smarter option. But once you look closely, the costs start to pile up.

Take delivery and failover costs. If an IP message doesn’t make it—because the user doesn’t have data or the app installed—you end up sending an SMS anyway. That’s double the cost.

Then there are platform fees. WhatsApp, for example, charges per conversation, and the rates change depending on who starts the chat and where they’re located. Pricing models shift regularly, which makes budgeting harder.

And let’s not forget about reach. Not all your customers use the same apps. With IP messaging, you’re managing a patchwork of integrations to cover your entire audience. SMS? It just works, everywhere. Especially if it’s delivered through a Tier 1 SMS Gateway.

When Messaging Flexibility Becomes a Liability

Going all-in on IP messaging might sound efficient, but it comes with risks—especially if you work in regulated industries.

Take compliance. Financial and healthcare messaging needs to align with laws like GDPR and PSD2. SMS has a long track record of meeting these standards. IP platforms? Not so much. You’re putting sensitive data into ecosystems with inconsistent security models.

IP messaging lives inside app environments that are more prone to phishing and spoofing. Telecom infrastructure, which powers SMS, offers more control and visibility.

And don’t underestimate lock-in. When Meta updated its WhatsApp pricing, many businesses got caught off guard. With SMS, you’re not at the mercy of a single provider—it’s an open, global standard. For more on how evolving regulations like the EU’s Digital Markets Act could reshape the future of messaging, see The Digital Markets Act & Messaging Interoperability.

Why SMS Is Still the Backbone

There’s a reason businesses haven’t abandoned SMS. It’s not flashy, but it is effective. It works when apps don’t. It delivers even when there’s no internet. And it reaches every mobile phone, no matter how old or where it’s located.

This is why companies like Revolut and Wise continue to use SMS as a fallback. When an app crashes, a device goes offline, or a customer is mid-onboarding—SMS is the channel that still gets through.

How RGTN Makes SMS Work Smarter

At RGTN, we help businesses balance flexibility with reliability. That means using IP messaging where it shines—and leaning on SMS when delivery matters most.

We optimize your message routing to avoid unnecessary retries. We deliver directly to carriers, not through chains of intermediaries. And we help you meet compliance requirements across markets without needing an internal legal team.

You Don’t Have to Choose—Just Plan Smart

IP messaging is powerful, and it’s here to stay. But it’s not a silver bullet.

The most resilient messaging strategies use both: IP for engagement, SMS for guaranteed delivery.

So if your messaging strategy needs reach, compliance, and real-world reliability—start with SMS.

Want to make your messaging stack more resilient? Let’s talk.