Payit by NatWest highlights negative impact of payment disruptions

§ 01 Executive Snapshot

• What: New research from Payit highlights payment processing challenges in utilities and telecoms.
• Who: Payit by NatWest, utilities and telecom companies.
• Why it matters: Payment disruptions significantly affect customer experience and operational efficiency in these sectors.

§ 02 Key Developments

• Nearly one quarter (23%) of utilities and telecoms companies report that payment processing challenges worsen customer experience.
• Almost all (99%) of these businesses face payment disruptions, leading to issues like cash flow problems (26%) and fraud/security concerns (28%).
• 80% of companies believe syncing customer financial data with billing profiles would enable faster assessments and better support for vulnerable customers.

§ 03 Strategic Context

• The industry faces a 'data gap' due to lack of access to consented customer financial data, essential for making informed payment decisions.
• Many organizations still rely on outdated payment infrastructures, which hinders efficient customer journeys and contributes to operational risks.

§ 04 Strategic Implications

• Immediate consequences include a significant percentage of businesses (50%) reporting payment delays deter customers, leading to lost business.
• Long-term, the adoption of Open Banking is crucial for improving payment success rates and enhancing customer satisfaction and retention.

§ 05 Risks & Constraints

• Potential roadblocks include organizations being constrained by outdated payment infrastructure that exacerbates existing issues.
• Competition from modern payment solutions could further pressure traditional payment methods that many firms still rely on.

§ 06 Watchlist / Forward Signals

• Upcoming milestones include the potential widespread adoption of Open Banking solutions among utilities and telecoms companies.
• Future developments to watch for include improvements in payment processing efficiency and customer satisfaction metrics as firms adopt new technologies.