55% of Utility Company Executives Say Digitization Is Key to Industry Growth

The utilities industry has been digitizing payments processes for many years. When the pandemic hit in early 2020, the pace accelerated as companies pursued the gains in efficiency and the lower costs available through digitization.

Still, these companies have an opportunity to convert more customers to digital payments. In doing so, they can achieve even greater efficiencies and higher levels of customer satisfaction.

More than half of billing executives consider it very or extremely important to improve their businesses’ billing and payments capabilities, according to “The Digital Payments Edge,” a PYMNTS and ACI Worldwide collaboration based on a survey of 100 utility billing and payments executives.

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Fifty-eight percent of executives consider it very or extremely important to improve their current digital billing capabilities. Another 35% consider it moderately important.

Similarly, 53% percent of executives consider it very or extremely important to improve their current digital payments capabilities, and another 33% consider it moderately important.

Digitization of the business environment is the most cited related factor they see as key to helping drive industry growth going forward. In fact, 55% of billing executives say that’s a factor.

Smaller shares of billing executives pointed to each of four other factors, with 16% citing interest, foreign exchange and inflation rates, 13% citing consumers’ purchasing power, 13% citing competitive pressure and 4% citing the regulatory environment.

Continuing to drive efficiency improvements means utility companies will have to keep investing in these payment options and better digital customer experiences to boost usage of the platforms.

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. The anticipated benefits may explain why more than half of utility companies are investing in or planning to invest in digitized payment platforms.