RCS Messaging for Business: Is It Time to Upgrade Beyond SMS in 2025?

Key Takeaways

Text messaging is evolving. For decades, SMS ruled business communication with its simplicity and universal reach. But in 2025, Rich Communication Services (RCS) is finally gaining serious traction—especially after Apple's September 2024 decision to support RCS in iOS 18.

If you're running business text campaigns, you're probably wondering: Should I switch from SMS to RCS? The short answer: not entirely. But you should absolutely understand RCS and prepare for a hybrid strategy.

What Is RCS Business Messaging?

RCS (Rich Communication Services) is the next-generation messaging protocol designed to replace SMS. Think of it as "iMessage for everyone"—Android and iPhone users alike.

RCS vs SMS: The Core Differences

Traditional SMS:

• 160-character text limit
• No media support (requires MMS)
• No read receipts
• No typing indicators
• Works on cellular network (no internet required)
• Universal compatibility (every phone)

RCS Business Messaging:

• No character limits - send long messages without splitting
• Rich media - high-resolution images, videos, GIFs, carousels
• Interactive buttons - users can click CTAs directly in the message
• Read receipts - see when messages are read
• Typing indicators - real-time conversation feel
• Branding - display logo and verified business name
• Requires internet connection (Wi-Fi or mobile data)
• Limited device support (growing but not universal)

What RCS Looks Like in Action

Imagine sending a text message that looks more like an app than a basic SMS:

RCS Product Promo Example:

[Your Company Logo]
✓ Verified Business Badge

[High-res product image]

🔥 Flash Sale: 40% Off Winter Collection

Shop now with one tap 👇
[Browse Products Button]
[View Cart Button]

Sale ends in 6 hours

Read 2:34 PM ✓✓

Compare that to SMS:

FLASH SALE: 40% off winter!
Shop: bit.ly/sale40

Reply STOP to end

The difference in engagement is massive.

RCS Adoption in 2025: The Apple iOS 18 Catalyst

Current Adoption Numbers

According to a Mobilesquared report, as of June 2024 (before iOS 18), there were 1.5 billion RCS for Business users worldwide—more than double the number from early 2022.

But here's the game-changer: Apple officially launched RCS support with iOS 18 on September 17, 2024.

Before this, RCS was primarily an Android feature. With 1.2+ billion active iPhone users globally, Apple's adoption instantly made RCS viable for true mass-market campaigns.

Industry Predictions

• Juniper Research predicts 50 billion RCS messages globally in 2025
• Adoption accelerating in retail, travel, healthcare, and financial services
• Marketing automation platforms are building native RCS support

Carrier Support Status (2025)

United States:

• ✅ T-Mobile - Full RCS support
• ✅ AT&T - Full RCS support
• ✅ Verizon - Full RCS support
• ✅ Apple (iOS 18+) - Native RCS support

Global:

• ✅ Most major carriers in Europe, Asia-Pacific, and Latin America
• ⚠️ Still rolling out in some regions

Why RCS Business Messaging Outperforms SMS

1. Higher Engagement Rates

Studies show RCS business messaging drives 3x higher engagement rates and up to 42% more clicks compared to traditional SMS campaigns (Vibes, 2024).

Why? Because RCS messages are:

• More visually appealing
• Easier to interact with (no copying links)
• Feel more legitimate (verified sender badges)

2. Rich Media Capabilities

SMS/MMS limitations:

• Images often compressed to low quality
• Videos limited or not supported
• No carousels or galleries

RCS advantages:

• High-resolution images and videos
• Product carousels (swipe through multiple items)
• GIFs and animations
• Interactive maps

3. Interactive Buttons

This is the killer feature for e-commerce and service businesses.

SMS:
"Click this link: bit.ly/book123"

RCS:
[Schedule Appointment]
[View Location]
[Call Us]

One tap, no typing, no leaving the messaging app.

4. Better Analytics

SMS analytics:

• Delivery rate
• Click-through rate (if using link shorteners)

RCS analytics:

• All of the above, plus:
• Read receipts (exact open times)
• Button click tracking
• Message engagement time
• Carousel swipe behavior
• A/B testing capabilities

5. Brand Verification

RCS messages display your:

• Company logo
• Business name
• Verified checkmark (like Twitter/X blue checks)

This builds instant trust and reduces "Is this spam?" friction.

The Challenges: Why RCS Isn't Ready to Replace SMS (Yet)

1. Internet Connection Required

Critical limitation: RCS requires an active internet connection (Wi-Fi or mobile data). SMS works on cellular networks alone.

This creates delivery blind spots:

• Rural areas with poor internet coverage
• Users who disable mobile data
• Traveling users without data plans
• Emergency situations with limited connectivity

Bottom line: SMS still guarantees broader reach.

2. Device and Carrier Compatibility Issues

Despite massive growth, RCS still faces adoption hurdles:

• Older devices - Phones from 2018 or earlier may not support RCS
• Carrier support gaps - Some smaller carriers still rolling out support
• Default messaging app - RCS only works in compatible messaging apps (Google Messages, Apple Messages on iOS 18+)

If a user's device doesn't support RCS, what happens? Your RCS message falls back to SMS/MMS (but loses all the rich features).

3. Message Fallback Complexity

You must design messages that work both as RCS AND as SMS fallback:

RCS version:

[Product image]
🎁 Exclusive Offer Just for You
[Shop Now Button]

SMS fallback:

Exclusive offer! Shop now: bit.ly/offer
Reply STOP to end

This requires dual-message design and testing.

4. Higher Implementation Costs

SMS setup:

• Register 10DLC ($16-55 one-time)
• Per-message costs ($0.02-0.03 per SMS)

RCS setup:

• RCS Business Messaging API integration
• Agent registration with Google
• Brand verification process
• Per-message costs (typically higher than SMS)
• Development time for rich message templates

For small businesses, the ROI calculation is trickier.

5. Limited Campaign Automation Tools

SMS marketing platforms (like DMText) are mature with:

• Drag-and-drop campaign builders
• Pre-built automation (cart abandonment, welcome series)
• Easy segmentation and scheduling

RCS platforms are newer with:

• Fewer template libraries
• More technical setup required
• Emerging automation capabilities

RCS vs SMS: When to Use Each Channel

Use RCS When:

✅ Sending promotional campaigns to engaged audiences

• Product launches with rich imagery
• Interactive catalogs
• Flash sales with countdown timers

✅ E-commerce customer journeys

• Order confirmations with tracking buttons
• Shipping updates with "View Order" CTAs
• Post-purchase review requests

✅ Appointment-based businesses

• Confirmations with "Add to Calendar" buttons
• Reminders with "Reschedule" or "Cancel" options

✅ Customer support

• FAQ responses with quick-reply buttons
• Troubleshooting guides with images
• Two-way conversations with context

Use SMS When:

✅ Time-critical alerts

• Emergency notifications
• OTP/verification codes
• Urgent appointment reminders

✅ Maximum reach is priority

• Cold outreach campaigns
• Older demographic targeting
• Rural or international audiences

✅ Simple transactional messages

• Delivery notifications
• Appointment confirmations
• Password resets

✅ Budget-conscious campaigns

• High-volume sends with simple messaging
• Testing new audience segments

The Winning Strategy: SMS + RCS Hybrid Approach

Rather than choosing one over the other, smart businesses use both—routing messages based on recipient device capability and message type.

Hybrid Campaign Framework

Step 1: Build Your List (SMS)
Use SMS for initial opt-ins and list building since it has universal reach.

Step 2: Segment by RCS Capability
Your messaging platform should automatically detect which contacts support RCS.

Step 3: Send RCS to Capable Devices
For rich promotional campaigns, send RCS to compatible devices with engaging visuals and interactive CTAs.

Step 4: SMS Fallback for Everyone Else
Automatically fall back to SMS (with optimized copy and links) for non-RCS devices.

Step 5: Test and Optimize Both
Track performance separately:

• RCS engagement rates
• SMS click-through rates
• Overall conversion rates

Example: E-commerce Flash Sale

Segment A (RCS-capable):

[Product carousel with 5 items]
⚡ 4-Hour Flash Sale
40% off everything

[Shop Women's] [Shop Men's] [Shop Kids]

Verified: YourStore ✓

Segment B (SMS fallback):

⚡ FLASH SALE: 40% off everything for 4 hours!

Shop now: go.store.com/flash40

Reply STOP to end

Result: Best experience for everyone, maximum reach.

How to Get Started with RCS Business Messaging

Step 1: Verify Your Business

Register as a verified RCS sender:

• Submit business details to Google RCS Business Messaging API
• Provide EIN, business address, website
• Upload logo and brand assets
• Wait for approval (typically 3-7 days)

Step 2: Choose an RCS Platform

Options include:

• SMS platform with RCS support (easiest for existing SMS users)
• Google RCS Business Messaging API (direct integration)
• Third-party RCS providers (Twilio, Vonage, etc.)

DMText is monitoring RCS adoption and will introduce RCS capabilities as carrier support stabilizes. For now, our optimized SMS/MMS platform ensures 99.9% delivery with proven ROI.

Step 3: Design Rich Message Templates

Create templates for:

• Product promotions with carousels
• Appointment reminders with action buttons
• Customer support with quick replies
• Order confirmations with tracking

Step 4: Set Up Fallback SMS

Every RCS campaign needs an SMS fallback version:

• Simplify messaging for 160-character limit
• Use link shorteners
• Include all required compliance language

Step 5: Test Across Devices

Before launching:

• Test on Android (Google Messages app)
• Test on iPhone (iOS 18+ with RCS enabled)
• Test fallback behavior on older devices
• Verify read receipts and button tracking

Step 6: Launch and Measure

Track key metrics:

• RCS delivery rate vs. SMS fallback rate
• Engagement rate (button clicks, carousel swipes)
• Conversion rate
• Cost per conversion (RCS vs. SMS)

Real-World RCS Use Cases

Retail: Interactive Product Catalogs

Sephora-style campaign:

[Carousel: 5 new lipstick shades]
💄 New Spring Collection

Swipe to explore shades →
[Shop Now] [Find Your Shade]

Free shipping on orders $50+

Travel: Boarding Pass Delivery

Airline example:

✅ Check-in Complete

Flight AA 1234
LAX → JFK
March 15 | 8:30 AM

[View Boarding Pass]
[Add to Wallet]
[Flight Status]

Have a great flight! ✈️

Healthcare: Appointment Management

Medical office:

📅 Appointment Reminder

Dr. Smith
Tomorrow at 2:00 PM

[Confirm] [Reschedule] [Get Directions]

123 Medical Plaza, Suite 200

Reply for questions

E-commerce: Cart Abandonment Recovery

Online store:

[Cart image: 3 items]

You left something behind! 🛒

Complete your order and get 10% off

[Finish Checkout] [View Cart]

Code: SAVE10
Expires in 24 hours

Should Your Business Switch to RCS in 2025?

Switch If:

✅ Your audience is tech-savvy and mostly uses newer smartphones
✅ You're in e-commerce, retail, or travel (visual products benefit most)
✅ Your campaigns rely heavily on images, videos, or interactivity
✅ You have development resources for RCS integration
✅ Your average order value justifies higher messaging costs

Stick with SMS (for now) If:

✅ Your audience includes older demographics or rural areas
✅ Time-critical delivery is your priority
✅ You're on a tight budget with high message volume
✅ Your messaging is primarily transactional (OTP, confirmations)
✅ You want proven ROI with established best practices

Do Both (Recommended) If:

✅ You have a large, diverse audience
✅ You want maximum reach with enhanced experiences for capable devices
✅ Your platform supports intelligent RCS fallback
✅ You're future-proofing your messaging strategy

The Future: What's Coming for RCS

Expected Developments (2025-2026)

1. Universal Apple Support
All iPhone users on iOS 18+ will have RCS by default (no carrier restrictions).

2. Platform Consolidation
Marketing automation platforms will offer seamless SMS/RCS hybrid campaigns without separate setup.

3. AI Integration
RCS chatbots will leverage AI for:

• Natural language responses
• Product recommendations
• Personalized content generation
• Automated customer support

4. Enhanced Commerce Features

• In-message checkout (buy without leaving the conversation)
• Payment integrations
• Loyalty program management
• Subscription management

5. Lower Costs
As adoption increases, RCS message pricing will drop closer to SMS rates.

Conclusion: A Transition, Not a Revolution

RCS Business Messaging isn't replacing SMS overnight—it's enhancing what's possible with text messaging.

The smart strategy for 2025:

1. Master SMS first - It's still the most reliable, cost-effective channel
2. Monitor your audience - Check RCS capability percentages
3. Test hybrid campaigns - Compare RCS engagement to SMS baselines
4. Prepare for RCS - Design message templates that work in both formats
5. Stay flexible - Adopt RCS when your audience and ROI support it

At DMText, we believe in delivering messages that actually reach your customers. While we're closely watching RCS adoption, our focus remains on what works today: lightning-fast SMS delivery with 99.9% uptime, 36-hour 10DLC approval, and proven ROI. As RCS matures and reaches critical mass, we'll integrate it seamlessly into our platform—but we'll never sacrifice the reliability that SMS provides.

For now, SMS remains the king of business messaging. RCS is the heir apparent, but it's still learning to rule.

Sources

1. Mobilesquared. "RCS Business Messaging Report 2024"
2. Juniper Research. "RCS Business Messaging Traffic Forecast 2025"
3. Vibes. "RCS vs. SMS: Engagement & Marketing ROI Study 2024"
4. Attentive. "SMS vs. RCS: Next Generation Mobile Messaging 2024"
5. Braze. "The Future of RCS vs SMS: Marketing Channel Analysis"
6. Mailchimp. "Comparing RCS and SMS for Business Messaging 2025"

Related Resources:

• SMS Marketing Best Practices: 15 Proven Strategies
• A2P 10DLC Compliance Guide
• SMS Marketing ROI Calculator & Guide

Last Updated: January 15, 2025