What is USSD?

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USSD is a session-based text messaging service that allows for interactive communication, commonly utilized in various sectors such as banking, education, and telecommunications. Unlike SMS, USSD does not involve a store-and-forward mechanism. Messages are typically initiated with an asterisk (*) or hash (#) symbol and terminated with a hash (#), with a maximum length of 160 alphanumeric characters. Response times are rapid, usually within two seconds.

Types of USSD Codes:

Dedicated: Exclusive codes owned by one account or user for their specific service.
Semi-dedicated: Codes dedicated to one account but shared among multiple users.
Shared: Codes utilized by multiple companies or services.

How USSD Works:

User initiates a request, such as querying a bank account balance.
The USSD gateway forwards the request to the user’s USSD app.
The app processes the request and sends a response back to the USSD gateway.
The gateway displays the response on the user’s mobile phone screen.

Applications of USSD:

USSD finds application in various fields including:

Network configuration and requests
Voting
Customer updates
Financial services like mobile banking
Marketing surveys
Callback services
Order confirmations and tracking
Utility services
Product promotions
Competitions and contests

Benefits of USSD:

Global applicability
Compatibility with almost all mobile devices
Cost-effectiveness
Enhanced customer satisfaction
Real-time interactivity
No requirement for internet connectivity or data usage

Drawbacks of USSD:

Limited data throughput (messages restricted to 182 characters)
Shrinking coverage due to phasing out of 2G and 3G networks

Advantages for Businesses:

No need for app installation
Cost-effective messaging without data charges
Real-time communication, suitable for time-sensitive applications
Versatile usage in mobile financial services, customer interactions, surveys, marketing, and order tracking.

In summary, USSD offers a practical and efficient means of communication with widespread applications across various industries, despite some limitations associated with data throughput and network coverage. Its real-time nature and global accessibility make it a valuable tool for businesses aiming to engage with customers efficiently and affordably.