Smart Transaction Systems Inc. has added text messaging to its gift card and loyalty products for merchants, the company announced last week. Merchants can use the system to provide text messages that function as gift cards, special discount codes or direct advertisements, Ray Clopton, Smart Transaction president, tells CardLine. Consumers can send text messages to check gift card and loyalty-point balances, Clopton says. Based in Boulder, Colo., Smart Transaction offers loyalty initiatives tied to merchant-customers' home phone numbers, he says. The company historically has not offered prepaid products tied to phone numbers because of merchants' security concerns, Clopton says. To deal with security concerns, Smart Transaction is partnering with a company that provides a mobile wallet that consumers can set up on a cellular phone and protect with a personal identification number, Clopton says, declining to name the mobile company. Smart Transaction's customers primarily are restaurants and small merchants with one to three locations, Clopton says.