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WhatsApp vs SMS: Which channel Is best for Australian businesses? 

Tips, tricks & hacks Trends & Innovations 12 min read | Sinch Messagemedia wrote in blog on December 5, 2025

For years, SMS has been Australia’s go-to messaging channel. It’s quick, reliable, and built into every phone. But times are changing.  

As data coverage improves and app-based messaging becomes second nature, WhatsApp is quietly carving out a bigger share of how Australians connect. 

For businesses, this creates an interesting crossroads.  

Should you stick with SMS (a.k.a. the “old faithful” that reaches everyone) or start exploring WhatsApp? 

In this article, we’ll break down WhatsApp vs SMS in Australia, exploring how each channel works, how Aussies are using them, and what’s best for different business use cases.  

What’s messaging like in Australia today? 

As of June 2025, there are 13 million active WhatsApp users in Australia.  

It’s harder to pin down a definitive percentage of Australians using SMS because SMS is baked into every mobile plan. That said, it’s still extremely relevant. 96% of Australians say they use their mobile phones to send messages (SMS or equivalent) on a daily basis. 

When it comes to who are the keenest messagers in Australia, younger adults come out on top. Those between 18-24 are the heaviest users of messaging apps (we’re talking 89%), but older groups are catching up. About 79% of 55-64 year-olds use apps for messaging and calls.  

It also makes sense that WhatsApp is much more common in metropolitan and urban areas. In fact, 76% of people use a messaging app in metro areas compared to around 70% inrural spots.  

WhatsApp vs SMS: What’s different between each channel? 

At first glance, both WhatsApp and SMS do the same thing, but under the hood, they work very differently.  

WhatsApp runs on internet data, while SMS relies on the mobile network.  

That means WhatsApp messages can be sent anywhere there’s Wi-Fi or mobile data, but SMS will deliver even when someone’s offline or in a no-signal area. 

Here’s a breakdown of the core differences between the two.  

Does SMS guarantee delivery more than WhatsApp? 

Not exactly, but SMS is more resilient in the face of weak data. WhatsApp message delivery and “read” status depend on internet access. SMS, being independent of data, often gets through when app messages don’t.  

Is WhatsApp always cheaper overall? 

In many conversational use cases, yes. Because WhatsApp’s pricing often allows free replies within a 24-hour service window, the back-and-forth costs can be lower than paying for multiple SMS exchanges. But for one-way blasts or simple notifications, SMS might still be competitive depending on volume and local pricing. 

What about sending attachments, images, or documents? 

WhatsApp easily handles media (images, videos, documents) in messages. SMS can’t do that natively. To send media you’d need MMS or a link, both of which come with their own constraints.  

Can I use both in a messaging strategy? 

Absolutely. Many businesses use a “waterfall” or fallback approach: try WhatsApp first (for its richer experience), and if that fails, send via SMS to make sure the message gets delivered. 

WhatsApp vs SMS for engaging customers in Australia 

If you’re trying to choose between SMS or WhatsApp for customer engagement, it helps to think of them not as rivals, but as different tools for different jobs.  

Here’s a breakdown of each channel’s strengths, as well as when one might be better than the other. 

WhatsApp advantages for business  

• Verified business accounts and trust signals. One of WhatsApp’s biggest perks is that businesses can use verified profiles. That much-coveted green tick or verified badge gives your messages instant credibility. 

• Rich multimedia and interactive experiences. WhatsApp supports everything SMS can’t (or struggles with), like high-res images, videos, audio, attachments, buttons, quick replies, and product catalogues. Want to send a mini brochure for a new product straight in the chat? It’s totally doable.  

• Conversational and two-way engagement. Customers can ask a question, click a button, get menus, move through a decision tree. It’s way more dynamic than one-way broadcasts. Under the WhatsApp Business API, you can also automate flows, integrate with CRM systems, route conversations between agents, and build more personalised journeys.  

• Scalability and automation at scale. Once you’re beyond the basic WhatsApp Business App, the API version lets you scale. You can trigger messages based on events (e.g. when an order has shipped), automate FAQs, and manage large volumes of inbound and outbound communication. 

SMS advantages for business 

• Universal reach (no app or data needed). Every mobile phone in Australia supports SMS, regardless of whether someone has a feature phone, no data plan, or spotty connectivity. 

• Sky-high open and response rates. Research shows Australian SMS messages get read in minutes, with one source putting it at a 97% read rate within 15 minutes. Take this with a pinch of salt, though, as sometimes people will simply open a message to clear the notification. 

• Simplicity and consistency. SMS only supports plain text, which means fewer variables (less chance of something breaking or not being supported).  

• Strong ROI and cost structure. Although you typically pay per message (or per segment), SMS tends to deliver strong returns. Many marketers say SMS is particularly cost-effective because of its high visibility and conversion potential. 

Choosing the right channel (or a combo) 

Let’s be clear here, this isn’t a case of “this or that”.  

You don’t always have to pick one. In fact, a hybrid or fallback approach often makes the most sense. The key is knowing when each channel is most appropriate.  

Use SMS when:  

• You’re sending time-sensitive notifications (such as OTPs, appointment reminders, emergency alerts). 

• Your audience is rural or low connectivity (since SMS works without data). 

• You want a guaranteed fallback when WhatsApp fails (e.g. if the user doesn’t have WhatsApp or is offline). 

Use WhatsApp when: 

• You want interactive, engaging communication (such as product demos, conversational WhatsApp marketing, support flows). 

• You have rich content or media to share, like catalogues, images, videos, documents. 

• You’re building customer support or conversational journeys, with automations, routing, and context. 

• You’re targeting urban or data-connected users who are likely to respond via app. 

Many businesses take what’s called a “waterfall” approach. 

This is basically when they try to reach people via WhatsApp first (because it provides a better experience), and if that fails, they fallback to SMS to make sure the message gets delivered. This is kind of a “best of both worlds” model that works well if you want to balance engagement with also getting your message across.  

Privacy, security, and compliance with WhatsApp vs. SMS 

Yes, features and cost are important, but as a business, staying compliant is equally as critical.  

Both WhatsApp and SMS take very different approaches to privacy and security, which has its pros and cons under Aussie law.  

WhatsApp privacy & security

WhatsApp offers end-to-end encryption, which means only the two people involved in the message can see the content (not even Meta can get a peek). This means it’s more secure for sensitive conversations than SMS which has no encryption at all.  

That said, WhatsApp does collect metadata (like who you message, when, and how often), which isn’t encrypted. There’s also a bit of a back-and-forth in Australia at the moment about how encrypted platforms actually fit with national data-retention and lawful access rules under the Telecommunications Act.  

So, while WhatsApp’s content security is strong, businesses should still be aware of how data is stored and accessed. 

SMS, on the other hand, is reliable but less secure.  

SMS privacy & security

Messages are sent (unencrypted) via mobile networks, so they’re at risk of being intercepted or spoofed. Spam texts and phishing (or “smishing”, as it’s been dubbed) are on the rise, which has prompted the ACMA to tighten up regulations. There’s a new rule coming into play this Dec off the back of this that will mark any messages sent from unregistered sender IDs as unverified.  

Finally, any businesses using SMS for marketing must comply with the Spam Act 2003 and Privacy Act 1988, which means you need to get clear consent, identify yourself, and make it easy to opt-out.  

Choosing the right WhatsApp & SMS integration and provider 

Most businesses either use a messaging API or gateway that supports both WhatsApp and SMS, or they integrate the relevant APIs into a CRM or customer engagement platform. That way, your team can manage conversations (and campaigns) all from the same place. 

But not all providers are created equal.  

Here’s what to consider: 

• Delivery rates and reach. Some providers have more direct connections to carriers or better routing logic, which is useful if you’re trying to reach regional, remote, and metro areas. 

• Local support and compliance. It’s a flex having a WhatsApp business provider that knows Australian laws and has a local team on the ground.  

• Pricing and cost structure. WhatsApp APIs often use conversation- or template-based pricing, whereas SMS tends to be per message (or per segment). 

• Integrations. Does the provider plug into tools you already use (CRM, e-commerce, support desk)?  

• Scalability and reliability. Look for providers that can grow with you and have SLA, redundancy, monitoring, fallback channels, and the ability to handle spikes. 

• Reporting and insights. You’ll want analytics around open/delivery rates, read receipts, bounce profiles, engagement.  

• Branding and trust features. Make sure the provider you choose has things like verified business badges, custom sender IDs, and message templates. 

This is where Sinch MessageMedia comes into play.  

You get a single platform that supports SMS, WhatsApp, and more, so you can manage both channels in one place. As well as being Australian through-and-through (we know all about Aussie messaging laws and regulations), you can run WhatsApp campaigns, deliver transactional alerts via SMS, and handle support convos through the same inbox. 

Grow your business with MessageMedia, a leading platform for both WhatsApp & SMS    

With Sinch MessageMedia, you don’t have to choose between the reliability and universal access of SMS and the engagement power of WhatsApp. You can have both.   

Sinch MessageMedia’s messaging platform includes: 

• Access to the WhatsApp Business API with simple setup and local support 

• Enterprise-grade SMS gateway built for speed, deliverability, and reliability 

• Easy integrations with tools like HubSpot, Shopify, and Salesforce 

• Transparent, local pricing designed for Australian businesses 

• Analytics, automation, and omnichannel tools that scale as you grow 

Book a demo to see how it works or start a free trial and start connecting with your customers today.