The Economic Value of A2P SMS in Mexico

The Economic Value of A2P SMS in Mexico

The increased connectivity enabled by digital technologies has changed communication patterns throughout economies and societies and played an important role in facilitating interactions between individuals, whether through work or other aspects of their lives.

At the heart of these transformative impacts are the capabilities of digital communication technologies in enabling extensive reach throughout the population, supporting direct and personalised interactions, and providing fast channels of communication. As part of the technological evolution of digital communications, Application-to-Person (A2P) messaging has emerged to enable businesses to interact efficiently with a large number of customers simultaneously.

This economic impact report examines the economic and social contribution of the use of A2P SMS in Mexico, highlighting use cases and the drivers that enable such impact across the Mexican economy.

The report estimates that A2P SMS has lifted economy-wide productivity by nearly MXN 42 billion. These productivity gains enabled higher economic activity, which is estimated to have contributed around MXN 61 billion to the aggregate GDP and supported around 167,000 jobs across all industries within the Mexican economy.

At the same time, specific use cases of A2P SMS can also create social value. While this is frequently more difficult to quantify, it is no less important. Specifically, the analysis considers the use of A2P SMS to achieve two socially valuable outcomes:

  •      Facilitating better flows of information.
  •      Helping prompt positive behavioural change.

Continued support for the ongoing use of A2P SMS could potentially unlock a further MXN 2 trillion in cumulative productivity gains by 2035. However, this will require a commitment by policymakers to (1) continue its organisational support for A2P SMS; (2) improve the population’s access to digital communication tools; and (3) support businesses to adopt digital communication capabilities.

Find out more by downloading the report through the links below.

Download in English

Download in Spanish

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