Best CPaaS Providers for 2024

What is CPaaS?

A communications platform as a service (CPaaS) is a collection of software APIs that provide communications capabilities like voice, video, chat, and SMS. Businesses use CPaaS APIs to integrate these media functions into their applications, websites, and software programs.

Developers use CPaaS APIs to add and customize communication channels to their company’s app or website. CPaaS APIs enable companies to add features like click-to-call functionality, instant video meetings, built-in live chat messaging, and more. Companies can use more advanced APIs to build a phone system or call center with features like IVR menus, call recording, analytics, and automated transcription.

CPaaS communication APIs save coding time for developers while offering more front-end capabilities for customers. CPaaS providers offer additional assistance like software development kits (SDKs), online guides, forums, and live support.

Any CPaaS feature that’s incorporated into an existing app is hosted on the cloud platform, so the infrastructure is managed from anywhere. This also cuts the cost of purchasing servers to manage the software – developers write and add code directly to the cloud.

CPaaS Channels

CPaaS APIs integrate many communication channels into business applications. Businesses can choose the individual channels they want or build a multichannel communication system with UC or call center capabilities.

The channels listed below integrate with other functionality and APIs, enabling automations and workflows. Trigger phone calls, messages, and notifications from events that occur within your app or database.

Businesses can use CPaaS APIs to enhance apps with the following channels:

• Voice: Voice calling via VoIP telephony, making internet-based calls. Agents can make and receive calls from virtual phone numbers. Companies can provide these numbers to customers or embed click-to-call functionality into the app or website.
• Push Messaging: Push messaging notifications integrate into mobile applications, popping up on the user’s smart device
• SMS: Companies can send custom 1:1 texts, bulk texts, and auto-generated SMS texts to customers. Link texts to app activity like follow-up surveys, appointment confirmation, order status alerts, and more.
• Fax: Like traditional faxing, mobile app users scan items using their cameras and send them as online faxes.
• Web Chat: Live website chat is similar to SMS, but instead of the messages being sent through a local SMS program, the messages are delivered through a browser.
• Social Media Chat: CPaaS applications can also send text-based messages to users on various social media platforms like X/Twitter, Instagram, and Facebook
• Email: Send custom, bulk, or automated emails to customers from your app or website. Emails work well with triggers, for use cases like follow-up surveys, welcome emails, and more.
• Artificial Intelligence (AI): AI APIs work alongside other communication channels to power self-service conversations, call transcripts, conversation analysis, and other types of analytics
• Chatbots: Chatbots and virtual agents provide automated self-service conversations for customers. Use APIs to embed chatbots into a company website or app.
• Video: Embed face-to-face video conferencing into websites and apps. Customers can interact directly with staff through video.

UCaaS vs CPaaS: What's the Difference?

UCaaS and CPaaS provide businesses with the same communication channels, and they’re both software-based, so it’s easy to get them confused. The difference comes down to how the software capabilities are delivered to the company, and how the company uses them.

Unified Communications as a Service provides a complete, ready-to-use application with multiple channels: voice, team chat, video, and SMS. This software application features a premade interface and agent dashboard, along with analytics and routing features like IVR, call queues, and voicemail. Companies pay a monthly subscription for each user, who can access the app on desktop or mobile.

CPaaS, on the other hand, provides individual communication APIs that embed into the apps that companies already use. Companies end up with a custom app featuring just the channels and features they’ve selected. Rather than paying monthly for a whole app, CPaaS users pay-per-use, either by the minute or by the message

Learn more: UCaaS vs CPaaS: What is the Difference and What to Use?

Essential Features of a CPaaS Provider

When on the market, it’s vital to seek out a vendor that delivers the right features so that your development team can hit the ground running.

Here are some features to consider as you seek out a CPaaS provider:

• Phone numbers–10DLC, shortcodes, toll-free: In addition to core channels like voice and SMS texting, CPaaS providers should offer a bank of virtual phone numbers for you to choose from. 10 DLC numbers act like traditional phone numbers, while shortcodes have fewer digits and enable SMS marketing campaigns.
• Verification, number lookup, authentication: Verification and number lookup ensure that customers provide legitimate phone numbers when they sign up on your website or app. Authentication is a texting or email-based tool that sends users a one-time passcode to log in to apps. These tools provide security for your company and customers.
• Visual builders: Flow builders provide a low- or no-code workspace where you can link together multiple communication channels and actions within your communication framework. This drag-and-drop design tool can support IVR creation, chatbots, and workflows.
• WebRTC SDKs: WebRTC software development kits (SDKs) simplify the process of making changes to the API of your application. Since CPaaS companies use cloud-based architecture, your developers make changes from browsers, and the changes are saved across all involved instances.
• Templates: Templates are a tool that significantly decreases development time because development staff builds from a preset design. There are third-party templates available, but it’s always better for the provider to create them and grant them to users so that developers won’t have to maintain them.
• Analytics and statistics: Many CPaaS providers support their channels with analytics like call and text volume tracking, trends over time, delivery statistics, and open rates. This information helps you stay on top of spending and tracks the efficacy of your campaigns across channels.
• Marketing campaign tools: Some providers offer marketing workflows that automate multi-step processes across channels and apps. These features support use cases like welcome emails, follow-up surveys, discount offerings, and more.

CPaaS Pricing Models

Most CPaaS providers offer pay-as-you-go pricing, charged by message block or active call minute. For example, most CPaaS SMS providers charge a fraction of a cent per message, while CPaaS voice providers charge a fraction of a cent per minute.

However, some providers offer per-user pricing, or pricing based on usage campaigns. Most CPaaS providers also offer discounts for committed use and high monthly volume.

Let’s take a closer look at the most popular types of CPaaS pricing:

• Pay-As-You-Go: The most common and flexible pricing model, pay-as-you-go enables users to pay according to usage. Messaging users typically pay around $0.008 per message, and voice users average around $0.01 per minute of phone time.
• Contact-based: Some CPaaS providers charge a monthly subscription based on the total number of contacts you plan to target per month. On average, this model costs around $50 monthly for 30,000 email or SMS.
• Volume-based: Volume-based pricing offers a discounted rate if you reach a certain number of texts or call minutes within a month
• Committed use: Committed use and volume-based often mean the same thing–if you commit to a certain volume of texts or calls per month, CPaaS providers give discounted pricing.
• Per-user or per-seat: Primarily, a provider charging per user or per seat will include a unified communications application that will have a pricing around $15 to $25 per user (seat), per month. This is also common for providers that service contact centers, though the pricing schema for these is often in the $75 to $300 range (per seat).

Pros and Cons of Using CPaaS

In addition to providing in-app and real-time direct communication between end-users and customers, CPaaS enables companies the flexibility to build a custom app. Businesses can select the channels and features they want and integrate them alongside particular in-app events and capabilities.

On the other hand, integrating CPaaS capabilities requires an experienced developer to install and maintain the code. Integrating CPaaS APIs can be frustrating, with occasional unforeseen compatibility issues. The metered pricing structure may also lead to a higher-than-expected cost for users, which may be pricier than using a readymade app like UCaaS.

What to Look for When Comparing CPaaS Companies

Each CPaaS vendor offers unique features, and some of these features are better for organizations in specific industries, while others may go unused. Here are some features to consider:

• Global reach: Each CPaaS vendor offers distinct global reach and connectivity. For example, while your app may have calling ability overseas, it may not be able to send SMS messages to some territories. This isn’t always important for regional businesses, but it’s critical if you’re going to need to extend communications into foreign markets and reach customers on their preferred platform. Consider vendors with more reliable networks in various global territories.
• Provisioning of local numbers: Most CPaaS vendors provide virtual phone numbers that the application uses when contacting customers. These virtual numbers are separate from the user’s smartphone number. They include toll-free, vanity, and local numbers from around the globe. Ask your provider which area codes and countries they support, so you can establish a business presence in those areas.
• Self-service and setup assistance tools: Some providers like Twilio and Bandwidth have dedicated self-service repositories of information for development staff. This makes it easier to troubleshoot and implement changes when there’s online documentation to help resolve issues.
• Enterprise-grade security: For a platform to have VoIP security for enterprise clients, information sent through the API must be encrypted. This means that the development staff will need an encryption key for all information sent. Check with your provider to make sure they offer encryption for all data, regardless of the channel.
• Compliance: Depending on your company’s industry, you may need to keep your communications compliant with particular regulations. Common ones include HIPAA, GDPR, FISMA, and PCI DSS. Messaging has further regulations, designed to protect your customers from having their data mishandled. Ask your provider about the compliance standards they offer, to ensure your communications will remain compliant with your industry.
• Uptime: Providers use geo-redundancy by positioning backup servers around the globe to pick up the slack when servers go down. Vendors usually have at least a 99.9% uptime guarantee, but if you need stability, seek out ones that have at least 99.999% uptime SLAs.
• Technical support: The most effective vendors will have a strong technical support department to help developers who run into roadblocks. This support staff should be available 24/7 through multiple channels.

CPaaS Use Cases by Industry

CPaaS supports use cases across industries, because nearly every business utilizes at least one of the CPaaS communication channels: voice, SMS texting, video, and live chat.

To better understand whether or not CPaaS is a good fit for your business, let’s quickly take a look at common CPaaS use cases by industry.

Banking

Bank staff can connect with customers via video chat to discuss lending options, complete loan applications in their banking app, make credit card payments, and access account statements.

CPaaS lets banks send customers automated real-time notifications to alert them of low balances or suspicious activity within their bank accounts. Users can use SMS to quickly confirm whether or not they’ve used the card. If not, they can connect with an agent to cancel the card.

Users can scan checks within the app to deposit them, transfer funds between accounts on the go, or send money to someone else.

Real Estate

Real estate professionals can increase engagement with listings by using CPaaS to install a click-to-call link on profiles, and by allowing buyers to schedule a virtual or in-person open house within an app.

Website and app visitors can also submit questions about the property, notify agents when they’re running late to an appointment, or even use video calling for a private tour of the property.

Legal Professionals

In addition to appointment reminders, attorneys and other legal professionals rely on CPaaS-enabled chatbots and self-service tools. These technologies can collect client information, schedule consultations, and provide basic answers to common client questions.

Use automated SMS and emails to update clients about court dates and location changes, send reminders about potential penalties for missed dates, and even follow up with billing.

Healthcare

Healthcare companies and providers use CPaaS to send patients’ appointment reminders, confirmations, and notifications about in-app messages and test results.

Patients can choose if they’d like to get these automated reminders via text, call, or through another channel.

CPaaS video enables telehealth applications, letting patients send completed intake forms and attend video conferences with their medical providers. Medical devices and apps like the iPhone’s “Health” application can collect essential patient health data and send it to providers.

Hospitality and Travel

In the hospitality industry, companies use CPaaS-based messaging and email to send hotel reservation confirmations, flight information, and updates like cancellations and gate changes, or to facilitate communication between hotel management and guests.

Users can book train/bus tickets, schedule tours, and even request room service via the hotel’s or travel company’s app.

Retail

In addition to allowing in-app purchases and customer service, CPaaS enables companies to provide customers with real-time communication about order status.

Customers can change their delivery address and window, receive updates about the package’s arrival and current location, and even receive notifications when a package is out for delivery.

CPaaS is also used for sending out coupons and special offers, alerting customers to upcoming sales and in-store events, or automating thank-you SMS texts when customers place an order. It's the perfect complement to your existing CRM system.

The State of CPaaS

As we move toward 2025, a few trends have become apparent in the world of CPaaS: omnichannel communications, digital channels, and AI-enabled self-service tools.

Companies are increasingly implementing omnichannel communications to engage customers, leaning more heavily on digital approaches like messaging and push notifications. Omnichannel solutions are expected to maintain a 13.6% annual growth rate through 2030, and the CPaaS market is no exception.

SMS texting is one of the channels experiencing a particular surge in popularity, as companies use it for several capabilities: two factor authentication, follow up surveys, delivery status updates, and more. According to Juniper Research, SMS revenue will continue to account for over 50% of total revenue in the CPaaS sector. SMS-mediated tools like automated confirmations, surveys, and updates have become one of the main ways companies interact with customers.

Self-service tools are becoming more popular too, as chatbots and virtual agents leverage AI for more realistic and capable conversations. Experts predict that by 2025, 80% of customer-service interactions will utilize AI in some way. Many CPaaS providers offer AI-based tools and analytics to augment their live chat and chatbot offerings. These include call transcription, AI-based chatbots, and conversational analytics like sentiment detection.

The Bottom Line

The number of CPaaS providers entering the market is ever-increasing, allowing companies to find a provider with the exact features and channels they want. Since CPaaS blends application development with business communications, it requires a skilled development team to make sure the implementation goes smoothly.

Are you going to need reliable routing for both calls and SMS? Are you reaching foreign markets? What about compliance and enterprise security? How many channels are you planning to use? Keep these questions in mind while you compare vendors.