A2P SMS Messaging in BFSI Market Report 2025

The A2P SMS messaging in BFSI market size has grown rapidly in recent years. It will grow from $10.08 billion in 2024 to $11.26 billion in 2025 at a compound annual growth rate (CAGR) of 11.8%. The growth during the historic period was driven by regulatory compliance requirements, increasing needs for customer authentication, rising adoption of mobile banking, efforts to prevent fraud, and the demand for more efficient promotional campaigns.

The A2P SMS messaging in BFSI market size is expected to see rapid growth in the next few years. It will grow to $17.35 billion in 2029 at a compound annual growth rate (CAGR) of 11.4%. The growth in the forecast period is expected to be driven by the rise of digital banking services, increasing demand for real-time alerts, growing mobile phone penetration, enhanced customer engagement strategies, and regulatory requirements for secure communication. Key trends during this period include platform-based service delivery, integration with AI chatbots, implementation of two-factor authentication via SMS, personalization of message content, and a shift toward cloud-based SMS platforms.

The rise in mobile phone usage is expected to drive growth in the A2P SMS messaging in BFSI market. Mobile phone usage, which includes communication, online banking, and digital transactions, is increasing due to higher internet penetration and access to affordable, high-speed connectivity. This growth enables financial institutions to send timely, secure messages such as transaction alerts, OTP verifications, account updates, and fraud notifications, enhancing customer engagement and operational efficiency. For instance, in 2023, UK Finance reported that 42% of adults were registered for mobile payments, up from 30% in 2022, with 34% of the population using mobile contactless payments monthly.

Market players are advancing consumer trust through innovative fraud prevention solutions. Subscription-based scam protection services monitor and filter SMS communications in real time to block fraudulent messages. For example, in July 2024, BT Group plc launched A2P Trusted Bind and Scam Guard in the UK. Trusted Bind ensures all banking SMS traffic is routed through a secure messaging system, while Scam Guard, starting at £1 ($1.33) per month, provides scam message labeling, dark web monitoring, and cybersecurity tools to protect consumers.

In October 2023, Tata Communications Limited acquired Kaleyra Inc. for approximately $100 million, integrating its CPaaS technology and engineering expertise to enhance hyper-personalized, secure customer engagement. Kaleyra provides messaging, voice, video, push notifications, email, and chatbot solutions for enterprises across industries.

Major players in the a2p sms messaging in bfsi market are SAP SE, Twilio Inc., Infobip Ltd., Sinch AB, Bandwidth Inc., Syniverse Technologies LLC, Tanla Platforms Limited, TeleSign Corporation, Route Mobile Limited, Zenvia Inc., Clickatell Inc., Montnets Cloud Technology Group Co. Ltd., Soprano Design Pty Ltd, AMD Telecom S.A., Mitto AG, Vibes Media LLC, Tyntec Group Limited, Horisen AG, Silverstreet International B.V., Plivo Inc.

North America was the largest region in the A2P SMS messaging in BFSI market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in A2P SMS messaging in BFSI report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the A2P SMS messaging in BFSI market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the financial sector, particularly in investment strategies and risk management. Heightened tariffs have fueled market volatility, prompting cautious behavior among institutional investors and increasing demand for hedging instruments. Banks and asset managers are facing higher costs associated with cross-border transactions, as tariffs disrupt global supply chains and dampen corporate earnings, key drivers of equity market performance. Insurance companies, meanwhile, are grappling with increased claims risks tied to supply chain disruptions and trade-related business losses. Additionally, reduced consumer spending and weakened export demand are constraining credit growth and investment appetite. The sector must now prioritize diversification, digital transformation, and robust scenario planning to navigate the heightened economic uncertainty and protect profitability.

Application-to-person (A2P) short message service (SMS) messaging in banking, financial services, and insurance (BFSI) refers to automated text messages sent from applications to individuals by financial institutions. These messages may include transaction alerts, one-time passwords (OTPs), promotional updates, and service notifications. This approach enhances communication, improves operational efficiency, and strengthens security across financial services.

The main components of A2P SMS messaging in BFSI include the platform, A2P SMS gateway, and services. A platform is a cloud-based software infrastructure that enables BFSI institutions to send A2P SMS and other real-time communications via APIs, offering integrated message routing, analytics, and system compatibility. Deployment options include on-premises or cloud-based modes, and the solution supports enterprises of all sizes, from small and medium enterprises (SMEs) to large organizations. Applications include customer engagement, authentication, promotional campaigns, notifications, and other communication needs.

The A2P SMS messaging in BFSI market research report is one of a series of new reports that provides A2P SMS messaging in BFSI market statistics, including the A2P SMS messaging in BFSI industry global market size, regional shares, competitors with the A2P SMS messaging in BFSI market share, detailed A2P SMS messaging in BFSI market segments, market trends, and opportunities, and any further data you may need to thrive in the A2P SMS messaging in BFSI industry. This A2P SMS messaging in BFSI market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The A2P SMS messaging in BFSI market consists of revenues earned by entities by providing services such as customer authentication messages (OTP and 2FA), transaction alerts, account balance notifications, fraud detection messages, payment reminders, loan and credit card updates, promotional offers, and customer service notifications. The market value includes the value of related goods sold by the service provider or included within the service offering. The A2P SMS messaging in BFSI market also includes sales of messaging gateways, SMS APIs (Application Programming Interfaces), cloud-based SMS platforms, bulk SMS software, customer engagement platforms, and SMS analytics tools. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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