What Is a USSD Service and Which Businesses Can Benefit From One?

 

Many businesses want customers to access information, submit requests, check accounts, answer questions, make selections, or interact with a service without requiring them to download an app.

That is where USSD comes in.

You may have seen a phone number beginning with a star and ending with a hash, such as *123#. When you dial it, a menu appears on your phone. You select an option, enter information when required, and move through the service using simple numbered menus.

Unlike an ordinary SMS, USSD creates a real-time interactive session between the customer's phone and the service provider. MSpace describes USSD as a menu-driven communication method that can work on both smartphones and basic phones without requiring mobile data.

This makes USSD particularly useful for businesses and organizations whose customers may not always have internet access or may prefer a quick, simple mobile interaction.

What Does USSD Mean?

USSD stands for Unstructured Supplementary Service Data.

It is a communication protocol that allows a mobile phone to interact with a service provider through a real-time session.

Instead of opening a website or application, the customer simply dials a USSD code.

For example:

Customer dials: *123#

The screen might display:

Welcome to ABC Services

1. Check Balance

2. Make Payment

3. Check Order

4. Request Service

5. Contact Support

6. Exit

The customer enters a number, and another menu appears.

This interaction can continue until the customer completes the required transaction.

That simple process makes USSD particularly useful when a business wants to make a service accessible without relying entirely on mobile applications or internet connectivity.

How Does a USSD Service Work?

A typical USSD interaction follows a straightforward process.

Step 1: The customer dials the USSD code

The customer enters the organization's USSD code on their mobile phone.

Step 2: A menu appears

The system displays available options.

Step 3: The customer selects an option

The customer enters the number corresponding to the service they want.

Step 4: The system requests information

Depending on the service, the customer may be asked to enter an account number, customer number, membership number, PIN, response, or other information.

Step 5: The system processes the request

The USSD application communicates with the business system and retrieves or submits the relevant information.

Step 6: The customer receives a response

The customer can receive information or confirmation directly through the USSD session.

The important difference is that USSD is interactive. It is not simply a business sending a message to a customer.

The customer and the system can have a short, structured conversation.

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Why Would a Business Need USSD?

Businesses sometimes assume that having a website, mobile application, WhatsApp account, or SMS service means they do not need USSD.

But these channels serve different purposes.

A mobile application requires installation.

A website generally requires internet access.

WhatsApp requires an internet connection and a compatible application.

USSD can provide a much simpler interaction: dial, select, respond and complete the task.

That can be valuable when a business serves a large customer base and wants to make certain services accessible from almost any mobile phone.

MSpace specifically highlights USSD uses including account balance checks, bill payments, surveys, polls, vouchers, coupons and prepaid services.

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Which Businesses Can Benefit From USSD?

USSD is not limited to banks or telecommunications companies.

A wide range of businesses and organizations can build useful USSD services.

1. SACCOs and Financial Organizations

SACCOs are one of the clearest examples.

A SACCO could create a USSD menu allowing members to:

• Check account balances

• Check loan balances

• View mini-statements

• Check contribution information

• Request services

• Access account information

• Receive important instructions

• Interact with member services

Instead of requiring every member to visit an office or use a smartphone application, some services can be made available through a simple USSD menu.

For organizations serving customers with different levels of digital access, this can make services easier to reach.

2. Schools and Education Businesses

Schools can also explore USSD for administrative and information services.

For example, a school could potentially create menus for:

• Student information

• Fee-related inquiries

• School event information

• Admissions inquiries

• Parent feedback

• Surveys

• Contact information

• School announcements

Educational institutions often communicate with large numbers of parents and students.

USSD can become another channel for structured interactions, particularly where the school wants to make a simple service accessible without requiring an application.

3. Retail Businesses

Retailers can use USSD to create simple customer interaction systems.

For example:

Welcome to XYZ Store

1. Check Product Information

2. Find a Branch

3. View Promotions

4. Request Assistance

5. Submit Feedback

6. Contact Sales

A retailer with multiple branches could use USSD as another way of connecting customers to its services.

4. E-Commerce Businesses

An online business may have customers who are not constantly using its mobile application or website.

A USSD service could provide another customer interaction point.

Depending on the system's design and integrations, businesses could use USSD for activities such as:

• Customer inquiries

• Order-related information

• Service requests

• Promotions

• Customer registration

• Feedback collection

The important consideration is to design the USSD menu around tasks customers actually need to complete.

5. Healthcare Organizations

Healthcare providers can use structured mobile interactions for administrative services.

Potential applications include:

• Appointment requests

• Clinic information

• Service information

• Patient inquiries

• Feedback surveys

• General customer support

Healthcare businesses should, however, design these systems carefully around privacy, security and applicable data-protection requirements.

USSD should not automatically be treated as appropriate for transmitting sensitive medical information simply because it is convenient.

6. Insurance Companies

Insurance businesses communicate with customers throughout the customer lifecycle.

USSD could potentially provide options such as:

• Policy-related inquiries

• Service requests

• Claims-related information

• Customer support

• Feedback

• Product information

For insurance businesses with large customer bases, a simple mobile interface can provide an additional access channel.

7. Logistics and Delivery Companies

Logistics companies need constant communication between businesses, customers, drivers and delivery teams.

A USSD system could potentially help customers:

• Check delivery information

• Request assistance

• Obtain service information

• Submit inquiries

• Interact with customer support

For businesses operating across areas where internet access is inconsistent, having a non-app mobile channel can be particularly useful.

8. NGOs and Community Organizations

Organizations working with large communities can use USSD to collect structured information.

Possible applications include:

• Surveys

• Polls

• Registration

• Feedback

• Information requests

• Program-related interactions

• Community participation

Instead of requiring everyone to access a web form, a simple USSD menu can make participation easier.

9. Hospitality Businesses

Hotels, restaurants, travel businesses and hospitality companies can also explore USSD.

For example, a hotel could create a menu containing:

1. Make an Inquiry

2. Room Information

3. Restaurant Information

4. Events

5. Contact Reception

6. Special Offers

A hospitality business could combine USSD with other communication channels such as SMS, WhatsApp and email.

10. Real Estate Businesses

Real estate companies can use USSD to create another way for prospective customers to interact with their property business.

Potential options include:

• Property inquiries

• Requesting a viewing

• Finding available properties

• Agent contact

• Property information

• Buyer or tenant registration

• Feedback

For real estate companies marketing many properties, a structured USSD system can help organize customer inquiries.

11. Event Organizers

Event organizers need to collect registrations, communicate information and understand their audiences.

USSD can potentially be used for:

• Event registration

• Polls

• Surveys

• Ticket-related inquiries

• Event information

• Feedback

• Promotional campaigns

It can also be combined with SMS campaigns to reach registered participants.

12. Businesses Running Surveys and Polls

USSD is particularly interesting when the primary objective is collecting responses.

A business could ask customers to dial a code and answer a sequence of questions.

For example:

How satisfied were you with our service?

1. Very satisfied

2. Satisfied

3. Neutral

4. Unsatisfied

5. Very unsatisfied

The business can then use the collected responses to understand customer opinions.

This can be useful for customer satisfaction research, market research and feedback campaigns.

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USSD Is Not Only for Large Companies

One misconception is that USSD is exclusively for banks, telecom companies and large corporations.

The more useful question is:

Does your business have a service that customers could access through a simple menu?

If the answer is yes, USSD may be worth investigating.

A smaller organization might use a USSD service for one specific function rather than attempting to build an enormous mobile platform.

For example:

*Dial XXX#

1. Register

2. Check Status

3. Request Service

4. Get Help

Simple systems can sometimes solve very specific business problems.

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USSD vs Mobile Apps

USSD and mobile apps are not necessarily competitors.

They can complement each other.

A mobile app can provide a rich interface with images, dashboards, maps and advanced functionality.

USSD is better suited to short, structured interactions.

Consider a SACCO.

Its mobile application could provide:

• Account dashboard

• Transaction history

• Documents

• Notifications

• Detailed financial information

Its USSD service could provide:

• Balance

• Loan status

• Mini-statement

• Simple requests

The two channels can serve different customer preferences.

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USSD vs SMS

SMS is excellent for sending information.

For example:

Your payment of KES 5,000 has been received.

USSD is interactive.

For example:

*Dial 123#

1. Check Balance

2. Loan Status

3. Mini Statement

4. Contact Support

The customer chooses an option and receives a response.

That distinction is important.

SMS = primarily message delivery.

USSD = interactive mobile session.

Businesses can use both together.

A customer might use USSD to request information and then receive an SMS confirmation.

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USSD vs WhatsApp

WhatsApp offers a richer communication environment.

Businesses can use WhatsApp for:

• Conversations

• Images

• Documents

• Videos

• Customer support

• Interactive messages

• Broadcast communication

USSD is much simpler.

Its strength is not multimedia. Its strength is accessibility and structured interaction.

A business might therefore use:

USSD for quick transactions and menus.

WhatsApp for richer conversations and customer support.

SMS for notifications and alerts.

Email for detailed information and documents.

This is why businesses should think in terms of a communication strategy, rather than choosing only one channel.

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What Can a Business Put Behind a USSD Code?

The possibilities depend on the business, system design and integrations.

Common examples include:

Customer accounts

Customers can access basic account information.

Surveys

Businesses can collect structured customer feedback.

Polls

Organizations can ask customers or members to select from predefined options.

Registration

Customers can submit basic information to register for a service or event.

Service requests

Customers can select a service they need.

Vouchers and coupons

Businesses can create mobile-based promotional interactions.

Information services

Customers can retrieve frequently requested information.

Financial services

Organizations can potentially provide account-related functions where the necessary integrations, security and regulatory requirements are in place.

MSpace specifically lists account balances, bill payments, surveys, polls, vouchers and coupons among USSD use cases.

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What Does MSpace Offer for USSD?

MSpace provides USSD services designed for interactive mobile applications.

Its current USSD offering includes Dedicated USSD, Test-Bed Service and Shared USSD options. The published pricing page currently lists a Dedicated USSD setup/up-front structure and a lower-cost Shared USSD option, with applicable VAT and usage charges. Businesses should confirm the current package and pricing directly with MSpace before purchasing.

The platform also presents USSD alongside services such as Bulk SMS, WhatsApp Business, Bulk Email, Short Code and M-Pesa Integration.

That matters because many businesses do not need just one communication channel.

They may need a combination.

For example:

USSD → customer interaction

SMS → confirmation

WhatsApp → customer support

M-Pesa integration → payment

Email → detailed documentation

This creates a more connected customer communication system.

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How Much Can a USSD Service Cost?

The cost depends on the type of USSD service, configuration, usage and business requirements.

MSpace's published USSD information currently lists:

Dedicated USSD

• KES 102,000 + VAT

• KES 36,000 + VAT upfront fee

• KES 36,000 + VAT monthly fee

Shared USSD

• KES 10,000 + VAT setup

• KES 5,000 + VAT monthly fee

There is also a test-bed option listed for businesses that want access to a test environment.

Because pricing and technical requirements can change, businesses should request a current quotation based on their specific use case before making a decision.

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Questions a Business Should Ask Before Getting USSD

Before purchasing a USSD service, a business should determine exactly what it wants customers to accomplish.

Ask:

1. What problem will the USSD service solve?

2. Who will use it?

3. What information will customers need?

4. How many menu levels are necessary?

5. Will customers need to submit information?

6. Does the system need to connect to an existing database?

7. Will payments be involved?

8. Will SMS confirmations be required?

9. How many transactions are expected?

10. Does the business need a shared or dedicated USSD arrangement?

11. What security and privacy requirements apply?

12. How will customer support handle failed transactions?

The goal should not be to build a complicated menu simply because USSD is available.

The goal should be to make a useful business process easier.

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Who Should Consider a USSD Service?

USSD is worth investigating if your organization has:

• A large customer base

• Customers using both smartphones and basic phones

• Customers who need quick access to information

• Repetitive customer requests

• Membership services

• Account inquiries

• Surveys or polls

• Registration processes

• Service-request workflows

• Mobile-based transactions

• Customers in areas with inconsistent internet access

It can be particularly attractive where simplicity and accessibility matter more than a visually rich interface.

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USSD Can Also Be an Opportunity for Consultants and Agencies

There is another side of the USSD market that is easy to overlook.

You do not necessarily have to own the business that needs USSD.

If you work with businesses as a:

• Business consultant

• Digital marketer

• Web developer

• IT consultant

• Marketing agency

• Technology consultant

• Business coach

• Freelancer

• Sales professional

you may encounter companies that need better customer communication.

A client might need Bulk SMS.

Another might need WhatsApp Business.

Another might need USSD.

Another might need M-Pesa integration.

Instead of simply telling the client to search for a provider, you can introduce them to an appropriate technology solution.

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You Can Also Earn by Referring Businesses to MSpace

MSpace operates an affiliate program for people who refer new clients to its communication services.

The current official affiliate program states that affiliates earn 7% of confirmed, approved sales from new clients they refer. It also states that referrals are tracked through a 30-day cookie window, with a minimum payout threshold of KES 500 and payouts available through M-Pesa or bank transfer after approval.

For example, the current MSpace affiliate page gives a typical USSD annual package of KES 36,000 and shows a KES 2,520 example commission at 7%. Actual commissions depend on the confirmed and approved sale.

This creates an interesting opportunity for people who already have relationships with businesses.

You could identify businesses that need:

• USSD

• Bulk SMS

• WhatsApp Business

• M-Pesa integration

• Bulk Email

• Short Codes

• Other business communication solutions

Then refer qualified new clients through your affiliate link.

Join the MSpace Affiliate Program

If you work with business owners, organizations, entrepreneurs or companies that may need communication technology, you can join the MSpace affiliate program here:

https://mspace.co.ke/affiliate?join=C3D8071C4D

You can share the link through your blog, WhatsApp, social media, email, business network or direct conversations with potential clients.

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Final Thoughts

USSD remains useful because it solves a very specific problem:

How can customers interact with a business quickly from a mobile phone without depending entirely on an app or mobile website?

For SACCOs, financial organizations, schools, retailers, healthcare businesses, insurance companies, logistics companies, real estate firms, hospitality businesses, NGOs, event organizers and other service providers, USSD can provide a practical additional customer-access channel.

The best USSD service is not necessarily the one with the most menu options.

It is the one that makes an important customer task faster, simpler and easier to access.

And for consultants, agencies, marketers, developers and other professionals who regularly work with businesses, USSD can represent more than a technology solution—it can become another service need you can identify and refer to a provider such as MSpace.