Utilities & telecoms firms face widespread payment woes

Research from Payit by NatWest suggests utilities and telecoms companies are facing widespread payment problems, with 23% saying payment processing issues are worsening the customer experience.

Almost all respondents, 99%, reported some form of payment disruption, pointing to strain across billing and collection processes. Meanwhile, 26% cited cashflow issues and 28% raised concerns about fraud and security.

Half of the businesses surveyed said payment delays were deterring customers and leading to lost business. Another 21% said the problems were affecting customer satisfaction and retention, while 17% said they were preventing them from meeting customer demand.

The figures suggest payment operations are becoming more closely tied to customer service in sectors where regular billing and debt management are central to day-to-day business. Late payments were flagged by 34% of respondents, while 29% said they were working to improve checkout journeys and payment processes.

Legacy systems

Many companies continue to rely on older payment methods despite the disruption. The research found that 42% use traditional bank transfers and 43% rely on card payments, while only 36% use Pay by Bank or other Open Banking options.

This suggests many providers have yet to shift to newer account-to-account payment methods, even as they report operational friction. Payit argued that reliance on older systems is contributing to failed payments, slower processes and weaker support for customers who may be financially vulnerable.

The research also highlighted access to customer financial data as an issue. According to Payit, some payment challenges stem from a lack of consented financial information, creating a data gap for businesses trying to assess affordability, set payment plans and make credit decisions.

According to the findings, 80% of companies said it would be helpful to sync customer financial data with billing profiles. The goal would be faster, more accurate assessments and better support for customers who need tailored payment arrangements.

Customer impact

Utilities and telecoms providers have faced growing scrutiny over how they handle household finances, missed payments and customer support. In that context, payment failures can have consequences beyond back-office administration, particularly when customers are managing essential services and recurring bills.

Payit said Open Banking can give providers real-time access to consented financial data and support instant account-to-account payments. It added that the approach can reduce the time spent handling customer information, lower payment failure rates and strengthen fraud prevention.

The study surveyed 600 UK respondents working in treasury, payments, strategy and investment roles across the utilities and telecommunications sectors, with the sample evenly split between the two industries.

James Hodgson, Chief Executive Officer at 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."