SMS is dying—Sinch and Verizon’s RCS expansion is the future of messaging

Sinch AB is strengthening its collaboration with Verizon Communications to accelerate the adoption of Rich Communication Services (RCS) for business messaging across the United States. This expansion enhances RCS coverage, allowing enterprises to reach Verizon subscribers with advanced, interactive messaging features.

Announced at Enterprise Connect in Orlando, Florida, the partnership marks a strategic step forward for both companies in driving the adoption of RCS for business-to-consumer communication. By integrating Sinch’s messaging expertise with Verizon’s extensive subscriber base, the initiative aims to offer businesses a secure, branded, and feature-rich alternative to traditional SMS.

RCS has been positioned as the next evolution in mobile messaging, providing a more interactive experience that includes rich media, read receipts, and verified sender authentication. As enterprises increasingly prioritize customer engagement through digital channels, this expanded partnership aligns with the broader industry trend of adopting next-generation messaging solutions.

Why Is RCS For Business Gaining Traction Among Enterprises?

RCS for Business is transforming enterprise messaging by enabling businesses to move beyond the limitations of SMS. Unlike traditional text messaging, RCS allows companies to send high-quality images, interactive buttons, and real-time updates within a secure, verified channel. This technology enhances customer engagement while reducing the risks of fraud and phishing commonly associated with SMS-based communication.

With growing concerns over message security and authenticity, businesses are turning to RCS to build trust with consumers. Verified sender capabilities ensure that customers can confidently interact with branded messages from businesses, minimizing risks associated with impersonation scams. The shift toward RCS adoption reflects a broader industry movement toward secure, AI-powered messaging platforms that offer seamless communication experiences.

How Does Sinch’s Customer Communications Cloud Enable RCS Expansion?

Sinch’s Customer Communications Cloud plays a central role in enabling enterprises to leverage RCS capabilities effectively. The platform integrates comprehensive messaging APIs, AI-powered conversational tools, and campaign management solutions, allowing businesses to create personalized and automated messaging experiences.

By partnering with Verizon, Sinch is extending its RCS capabilities to a broader audience, ensuring that businesses can tap into Verizon’s subscriber base with feature-rich messaging solutions. The integration with Verizon’s network allows enterprises to seamlessly adopt RCS through Sinch’s cloud-based platform, making it easier to scale digital communication strategies without complex infrastructure changes.

Which Industries Are Driving RCS Adoption With Sinch And Verizon?

Several leading enterprises across industries have already integrated RCS into their customer engagement strategies using Sinch’s platform. Businesses in sectors such as retail, finance, logistics, and technology are leveraging RCS messaging to enhance interactions with their customers.

Global brands, including Nespresso and EasyPark, have utilized Sinch’s RCS capabilities to provide interactive customer service experiences. Major financial institutions and delivery services have also adopted RCS to improve transaction updates, fraud alerts, and real-time delivery notifications. The ability to provide instant, secure, and verified communication is a significant factor driving enterprise interest in RCS messaging.

What Does This Expansion Mean For The Future Of Business Messaging?

The expansion of Sinch’s partnership with Verizon signals a growing industry commitment to replacing SMS with more advanced messaging technologies. As RCS adoption continues to rise, businesses are likely to prioritize interactive and AI-powered customer engagement solutions over traditional text messaging.

For Sinch, this collaboration further solidifies its position as a key player in enterprise messaging. The company’s focus on innovation, combined with its partnerships with major telecom providers like Verizon and Google, places it at the forefront of the transition toward next-generation communication solutions.

For Verizon, integrating Sinch’s RCS technology enhances its value proposition for enterprise customers seeking reliable, secure, and scalable messaging solutions. With competitors also exploring RCS-based communication strategies, Verizon’s partnership with Sinch could serve as a model for other mobile network operators looking to modernize their business messaging services.

How Are Investors Reacting To Sinch And Verizon’s RCS Expansion?

Sinch AB (XSTO: SINCH) has been expanding its footprint in enterprise messaging, and this partnership with Verizon further strengthens its market position. Investor sentiment surrounding Sinch remains positive, driven by its ongoing efforts to expand RCS adoption and secure strategic partnerships.

As of March 19, 2025, Sinch AB’s stock is trading at 22.97 SEK, with analysts maintaining an “Outperform” rating. The average target price stands at 31.31 SEK, representing a potential upside of 36.6%. Forecasts suggest a price range between 20.00 SEK (low) and 45.00 SEK (high), reflecting growing confidence in Sinch’s long-term growth trajectory.

Meanwhile, Verizon Communications Inc. (NYSE: VZ) is currently trading at $43.94, down 0.66% from the previous close. While the stock remains a staple for dividend-focused investors, recent concerns over subscriber growth and competitive pricing pressures have led to a cautious outlook. Analysts have assigned an “Overweight” rating to Verizon, with a target price of $46.29 and a forecast range between $40.00 (low) and $52.00 (high).

The expansion of RCS services could provide a long-term growth driver for both companies, particularly as businesses seek more interactive customer engagement solutions. However, competition in the enterprise messaging space remains intense, with other telecom providers and technology firms also vying for dominance in the RCS ecosystem.

What’s Next For Sinch And Verizon In The RCS Market?

As businesses increasingly embrace RCS for customer engagement, Sinch and Verizon’s expanded partnership is expected to drive wider adoption across industries. With a strong emphasis on security, brand authenticity, and interactive messaging, RCS is positioned to become a leading communication channel for enterprises seeking to enhance customer interactions.

Sinch’s continued investment in AI-powered messaging solutions, combined with Verizon’s extensive subscriber network, sets the stage for further innovation in business messaging. As the demand for rich, interactive communication grows, RCS is likely to play a crucial role in shaping the future of enterprise messaging.

For businesses evaluating their digital communication strategies, the shift toward RCS presents an opportunity to modernize customer engagement while ensuring secure and seamless interactions. With Sinch and Verizon at the forefront of this transformation, the adoption of RCS for Business Messaging is expected to accelerate, redefining how companies connect with their customers.