Source: Payit / Eulogy
New research from Payit reveals that nearly one quarter (23%) of utilities and telecoms companies say payment processing challenges lead to worsened customer experience. To add to this, almost all (99%) of these businesses face payment disruptions.
These issues include cash flow problems (26%) and reports of fraud and security concerns (28%). Challenges can stem from not having access to consented customer financial data, resulting in a “data gap”. This data is needed to make informed financial decisions and provide optimal support – best assisting the customer in their purchasing journey.
The necessary data includes affordability and account information which supports efficient decisions on payment plans, credit risk and customer support. Ultimately, these “data gaps” are now contributing to widespread payment issues across the sector.
This gap is slowing down processes and increasing operational risks, creating hurdles to simple and effective customer journeys. Closing the gap could help resolve challenges such as one third (34%) reporting issues with late payments and 29% saying they are having to work to improve their checkout journey and payment processes.
There is a clear appetite to fix these persisting issues. Payit’s research shows that 80% of companies in the industry say it would be helpful to sync customer financial data with their billing profiles, to enable a faster and more accurate assessment process, and ultimately ensuring vulnerable customers get the right financial support.
However, while demand for better data is high, many organisations are still constrained by outdated payment infrastructure, which continues to compound the issue rather than resolve it.
Despite the benefits of modern systems, businesses continue to rely on traditional payment methods, producing frictions. Adopting Open Banking can help address these challenges. It can reduce time spent managing and storing customer information, reduce payment failures, and increase security and fraud prevention.
James Hodgson, chief executive officer of Payit by NatWest
- 42% use traditional bank transfers
- 43% rely on card payments
- Only 36% use Pay by Bank/Open Banking
These inefficiencies are directly impacting customers:
- 17% say it prevents them from meeting customer demand
- 21% acknowledge that it affects customer satisfaction and retention
- 50% of businesses say payment delays act as a deterrent to customers, leading to lost business
James Hodgson, chief executive officer of Payit by NatWest, said: “Just as utilities and telecoms prioritise the bill-payer, Payit by NatWest is committed to a customer-centric approach to payments. We are always working on new ways to solve payment frictions for all parties involved in the transaction. We encourage companies to adopt Open Banking solutions to overcome traditional hurdles and eliminate inefficiency across the payment landscape.”
Open Banking is helping utilities and telecoms companies address some of their biggest payment and customer experience challenges by enabling real-time access to consented financial data and instant account-to-account payments. Compared to traditional card payments or manual bank transfers, Open Banking can help reduce payment failure rates while giving providers a clearer, more up-to-date view of a customer’s financial position. This can support more accurate affordability checks, improve payment success rates and create smoother, more seamless payment journeys for customers.
Further reading: True Potential launches Payit by NatWest for real-time payments