SMS vs WhatsApp for business: Which channel should your business use?

You're building your messaging strategy and facing a common dilemma: should you use traditional SMS texting or popular messaging apps like WhatsApp? It's a question many businesses are grappling with as messaging apps continue to grow worldwide.

Here's the reality: both SMS and WhatsApp have massive audiences. SMS reaches over 5.3 billion people globally, while WhatsApp connects more than 2 billion monthly users. But "Is WhatsApp better than SMS?" isn't really the right question. It's more about understanding which channel fits your specific business needs and customer preferences.

Business text messaging has become essential for customer communication, and choosing the right platform can significantly impact your engagement results. By 2025, 80% of customer service organizations will favor messaging channels like SMS and WhatsApp over traditional mobile apps.

Let's break down what actually matters when choosing between WhatsApp Business vs SMS for your communication strategy.

How many people can you reach with SMS vs WhatsApp?

SMS wins on pure accessibility. Every mobile phone—basic or smartphone—can receive a text message. No app downloads, no internet connection required, no barriers to entry. It simply works.

SMS is the most widely used digital communication platform on the planet. That's because it doesn't discriminate by device type or internet access. A text message reaches someone in rural areas with limited connectivity just as reliably as it reaches urban smartphone users. This universality is exactly why businesses still rely on SMS for critical communications like appointment reminders or security codes.

SMS reach statistics:

• 5.3 billion people use SMS globally
• 97% of Americans can receive text messages
• Works on 100% of mobile phones (no smartphone required)
• No internet connection needed

WhatsApp's reach is more selective. Yes, it delivers over 100 billion messages daily, which demonstrates massive usage. And in regions like India, Brazil, and large parts of Europe, WhatsApp isn't just popular—it's often the primary communication method. But there's an important caveat: everyone needs to have the app installed and an internet connection.

WhatsApp reach statistics:

• 2.9 billion WhatsApp users worldwide
• 966.5 million WhatsApp Business monthly active users (Q3 2024)
• Requires smartphone and internet connection
• Dominant in Latin America, Europe, India, but lower adoption in U.S.

If you're operating in the U.S., WhatsApp adoption varies significantly by demographic. Younger audiences generally have it installed, but older customers who prefer straightforward appointment confirmations may not. Unlike SMS, which works immediately on any phone, requiring someone to download an app just to receive business communications creates unnecessary friction.

The bottom line: SMS reaches virtually everyone. WhatsApp reaches a massive but specific subset of smartphone users, particularly in certain geographic markets.

WhatsApp vs SMS cost: which is cheaper?

This is where things get interesting because the answer genuinely depends on your use case.

SMS pricing:

• $0.01-0.05 per message (varies by volume and region)
• Additional costs for toll-free numbers and 10DLC registration
• No data charges for recipients (assuming unlimited texting plans)
• Straightforward per-message billing

SMS pricing is straightforward—you typically pay per message sent. In the U.S., costs range from a fraction of a cent to a few cents per text, depending on volume. Send 10,000 messages and you're looking at somewhere around $100-200 with most providers. There are additional costs if you're using toll-free numbers or dealing with 10DLC registration requirements, but the core pricing model is simple to understand.

WhatsApp pricing:

• $0.005-0.05 per conversation (24-hour session)
• Requires WhatsApp Business API access through provider
• Template approval and business verification required
• Recipients use data (Wi-Fi or mobile data plan)
• Can be more economical for international messaging

WhatsApp Business API uses a conversation-based pricing model that varies by country. You might pay $0.005 to $0.05 per conversation (which lasts 24 hours once initiated). For some use cases, particularly international messaging, this can work out cheaper than SMS. However, there's more setup complexity—you need API access through a provider, template approval, business verification, and other administrative steps.

Here's what many businesses don't consider upfront: user costs. SMS doesn't require data, assuming your customers have texting plans (which most do in developed markets). WhatsApp needs internet connectivity. For most of your customers, this is fine—they're on Wi-Fi or have adequate data plans. But in some markets or for certain demographics, data costs can be a consideration.

The reality: If you're sending basic notifications domestically, SMS is probably simpler and potentially more cost-effective. If you're doing high-volume international messaging or rich interactions, WhatsApp might save you money. Many businesses use both and let the use case determine the channel.

What are the open rates for SMS vs WhatsApp?

Here's where SMS demonstrates real strength. Text messages have an impressive 98% open rate, and most get read within 3 minutes of receipt. That's not marketing hyperbole—texts genuinely command attention in a way that emails (averaging 20% open rates) simply don't.

SMS engagement metrics:

• 98% open rate
• 90% read within 3 minutes
• 45% response rate
• 10% average click-through rate
• 29% conversion rate

WhatsApp's engagement story is more nuanced. For broadcast messages, open rates typically hover around 58%, climbing to 70% with personalization and strategic timing. That's still solid performance, but not the near-guarantee you get with SMS. Part of this comes down to user behavior—when a text message arrives, it feels urgent. When a WhatsApp message comes from an unfamiliar business number, people might approach it more cautiously.

WhatsApp engagement metrics:

• 58-99% open rate (varies by message type)
• 15% average click-through rate
• 45-60% conversion rate
• 391% increase in conversions when responding within 1 minute

But here's where WhatsApp marketing vs SMS gets interesting: engagement beyond the initial open. WhatsApp typically sees higher click-through rates (around 15% compared to 10% for SMS) and more back-and-forth interaction. Because it's built for conversation, people naturally engage more once they're in. Quick reply buttons, rich media, threaded conversations—all of this encourages interaction in ways that plain text simply can't match.

The takeaway: SMS guarantees visibility. WhatsApp generates deeper engagement from the people who do open your messages. SMS marketing delivers consistent results with that 98% open rate, while WhatsApp excels at creating interactive customer experiences.

What features does WhatsApp have that SMS doesn't?

This is where the two channels really diverge.

SMS capabilities:

• 160 characters per segment (chains together for longer messages)
• Plain text and emojis
• Links to external content
• Basic two-way messaging
• MMS for images/videos (expensive, not widely used)

SMS is fundamentally text-based. You get 160 characters per segment (though phones usually chain these together seamlessly), emojis if needed, and a link if you want to direct people elsewhere. MMS technically allows you to send images and videos, but it's expensive and not widely used in business contexts. What you see is what you get: simple, direct, text-based communication. That simplicity has advantages—messages load instantly regardless of connection speed, and there's no learning curve for recipients.

WhatsApp Business features:

• Messages up to 4,096 characters
• Images, videos, and audio clips
• PDF documents and file sharing
• Interactive buttons and quick replies
• List menus for selections
• Branded business profiles with logo
• Verified business badges (green checkmark)
• End-to-end encryption
• Read receipts and delivery confirmation
• Chatbot integration
• Threaded conversation history

WhatsApp, on the other hand, is a full-featured messaging platform. You can send images, videos, audio clips, PDF documents and files, interactive buttons and menu lists, messages up to 4,096 characters, location sharing, and contact cards.

If you're using WhatsApp Business API, you get even more: branded business profiles with your logo and information, automated greetings, chatbot capabilities, and verified business badges that build trust. You can have actual conversations with full context, see when messages are delivered and read, and maintain organized chat threads.

For customer service, this difference is significant. Text-Em-All's two-way texting works well for straightforward back-and-forth communication, but WhatsApp was designed from the ground up for conversation. Managing multiple simultaneous chats with full context and threading is more natural on that platform.

There's also the security consideration. WhatsApp uses end-to-end encryption for all messages, while SMS is vulnerable to interception. For sensitive customer conversations, that encryption provides meaningful protection.

Business messaging channels: compliance and trust

Both channels require you to follow established rules, but the frameworks are different.

With SMS, you're navigating telecom regulations—TCPA in the U.S., GDPR in Europe, plus carrier-specific requirements like 10DLC registration. The rules are clear: obtain explicit consent before sending promotional texts, provide easy opt-out methods, and avoid spam. Follow these guidelines and you're operating within the law. Break them and you're looking at substantial fines or message blocking. The FCC enforces TCPA regulations with penalties up to $1,500 per violation.

WhatsApp compliance means following Meta's Business Policy. They don't allow cold outreach without opt-in (similar to SMS regulations), certain types of content are prohibited, and they require template message approval for outbound notifications. What makes WhatsApp different is the quality rating system—if users frequently block or report your messages, WhatsApp can restrict or ban your business account. You need to earn and maintain trust on the platform.

From a user perspective, both channels have trust considerations. SMS is familiar but also prone to phishing scams—everyone has received suspicious "your package is waiting" texts from unknown numbers. There's no built-in identity verification, so any number can claim to represent a legitimate business. Trust in SMS is declining due to fraud and high termination rates.

WhatsApp offers verified business badges and displays your full business profile, which helps establish legitimacy. The platform is also relatively spam-free compared to SMS, thanks to Meta's stricter oversight. Once you establish a conversation thread with a customer, they have confidence that subsequent messages are genuinely from your business.

Key differences at a glance

So which channel should you use?

Most businesses benefit from using both channels, but strategically. Here's how to think about it:

Use SMS when:

• You need to reach everyone, regardless of app preferences or internet access
• The message is critical (appointment reminders, security codes, urgent alerts)
• You're operating in markets where WhatsApp adoption is uncertain
• You want the simplest implementation path with minimal setup

Use WhatsApp when:

• Your customers are already active on the platform (especially true in WhatsApp-heavy regions)
• Your communication benefits from rich media or interactivity
• You're building ongoing conversations rather than one-way notifications
• You need secure, encrypted messaging for sensitive topics

Combine them strategically:

Think of SMS as your reliable foundation for critical, universal communications. Use WhatsApp for richer, more engaging interactions with customers who prefer that channel. For example, send appointment reminders via SMS to ensure delivery, but handle customer service conversations through WhatsApp where you can share screenshots, images, or detailed information. You can also use SMS keywords to create interactive experiences within text messaging.

You can even prompt customers to choose their preferred channel: "Prefer WhatsApp? Message us at [link] to continue this conversation there." Giving people options shows you respect their communication preferences.

A practical example: A healthcare provider sends appointment reminders and time-sensitive alerts via SMS because they can't risk someone missing a notification due to app availability or connectivity issues. But for follow-up questions, prescription refills, or general inquiries, they offer a WhatsApp option where patients can have actual conversations with support staff, share photos when relevant, or receive detailed care instructions with visual aids. Text-Em-All's healthcare SMS solutions demonstrate how critical communications benefit from SMS's universal reach.

Geography matters significantly. If you're operating internationally, WhatsApp might be your primary channel in Latin America or Europe while SMS dominates in North America. Know your audience and meet them where they already are.

Is WhatsApp better than SMS for my business?

Here's the truth: this isn't a winner-takes-all situation. SMS and WhatsApp aren't competitors as much as they're complementary tools in your communication strategy.

SMS gives you guaranteed reach and immediate attention. It's the channel you use when you absolutely need someone to see your message, regardless of their phone, app preferences, or internet situation. SMS marketing delivers measurable results with proven engagement rates and straightforward implementation. WhatsApp gives you rich engagement and conversation depth that plain text can't provide. It's where you build relationships, not just deliver information.

The businesses that communicate most effectively don't pick sides—they use each channel for what it does best. They understand that different messages, different audiences, and different contexts call for different approaches. 81% of consumers have signed up to receive texts from businesses, a 15% increase from 2021, demonstrating continued SMS relevance even as messaging apps grow.

Start with your audience. Where are they? What do they use? What kind of communication do they expect from businesses like yours? The answers to those questions will guide you toward SMS, WhatsApp, or (most likely) both.

And remember: regardless of which business messaging channels you choose, what actually matters is reaching your customers effectively with messages they find valuable. The medium matters, but the message matters more.