Utilities Aim to Convert Final 25% of Customers to Digital Billing

The rapid modernization of digital billing and payments processing is evident throughout the economy, with utilities among the leading examples.  Fifty-five percent of utility company billing executives say the business environment’s digitization is the main factor that will affect industry growth through the next five years.

These companies understand where they should make their investments to drive growth, and that may explain why more than half of utility companies are investing in, or planning to invest in, digitized payments platforms. Ninety-three percent of these companies’ executives say digital billing capabilities are essential to boost growth. Digitized payment platforms are integral to customer satisfaction, and customers expect these platforms to provide other benefits, such as speeding up the bill payment and collection process.

These are just some of the findings in “The Digital Payments Edge: How Utility Companies Can Succeed In The Payment Processing Revolution,” a PYMNTS and ACI Worldwide collaboration. We surveyed 103 billing and payments executives at utility companies that send more than 30,000 customer bills each month from Oct. 26 through Nov. 19, 2021. We sought data on these companies’ efforts to provide customers with a seamless, digital-first billing and payments experience.

Some additional key findings include:

Ninety-three percent of utility company billing executives say it is important to have digital billing capabilities to enhance their companies’ growth rates in the next five years. Companies have been investing in payments digitization for years to improve their operations’ security, efficiency and cost-effectiveness. The companies that sustain these digital modernization efforts will position themselves to achieve the most significant returns on their investments.

Ninety-seven percent of billing executives say innovation with digitized processes will enhance customer satisfaction. The utility companies that successfully use digitized billing and payment processes to improve customer satisfaction and speed up the bill collection cycle will position themselves to succeed as digitized processes become more critical for all business operations.

Ninety-three percent of utility company billing executives say their customers are “very” or “extremely” interested in the security of their payment processes. At the same time, 99% of these companies say payment security is one of their strengths. Utility companies implementing digitized systems that deliver features customers expect, including the security of personal and financial information, will be in a position to succeed.

Utilities have spent years developing and investing in digitized bill payment systems. These systems have helped to improve operating efficiency and customer service. Utility companies that successfully leverage their digitized platforms to continue improving billing processes will better position themselves to meet customer expectations, boost loyalty and enhance their competitive positions. These outcomes will also be increasingly important as the energy and utility sectors undergo more rapid changes in the coming decades.

To learn more about how utility company billing and payment executives are using digitized payments platforms to drive growth, download the report.