The content of this article is provided for informational purposes only. You should always obtain independent business, tax, financial, and legal advice before making any business decision.
Online payments are rapidly becoming the default way UK consumers pay. While online shopping, especially for clothes and accessories, has long led as the top category for digital transactions, bill payments are now a very close second.
In fact, nearly two-thirds of UK consumers now pay their bills online. They cite speed (52%) and convenience (33%) as the two main reasons for their preference, but the benefits of an online payments system aren’t just skewed towards the consumer.
For utility companies, digital payments can help cut costs, deliver operational efficiencies, improve security and help the business stay competitive. Utility executives across the board are recognising that it’s time to embrace digital payment transformation and online transactions with it, with 58% saying that digitising billing and collections is a very or extremely important business priority.
And with rising pressure on consumers’ cost of living, offering more flexibility in their payment mix will be key to limiting late payments and reducing the cost of collections.
Utilities can use digital payments to not only enhance customer service but also streamline bill payments. For consumers, that means the choice of payment methods within their utility account dashboards – online and in mobile apps. From digital wallets to debit and credit cards, pay later options and recurring payment plans, the flexibility to choose when and how to pay their bills can help improve timely payments.
With the right payments provider, this comprehensive suite of payment options does not mean increased costs or tech debt for utilities. Instead, it can mean significantly reduced declines and late payments, and big savings in collections.
PayPal encourages consumers to store multiple cards and bank account details within their PayPal wallet. By doing so, consumers open up more ways to pay, including pay later options as available. For businesses like utility companies, this can mean a 9.1% boost in authorisation rate as customers’ stored payment methods can be called on if the initial transaction fails.
Any company embarking on a digital transformation journey is on the road towards two key things: significantly increasing its operational efficiencies and saving business resources. Given the current economic climate, the process of digital payment transformation can define the success of an enterprise weathering the road ahead.
Despite this need, 58% of utility executives worry about a lack of skills to complete a digital pivot, especially in the payments space. So, finding the right payments provider to support that transformation is vital.
The provider should also be able to help you streamline business operations by automatically processing payments and payouts, managing an evolving fraud landscape, and mitigating risk. Not just a cookie-cutter solution, your provider should deliver the ability to customise and tailor solutions to meet your needs, control your exposure to risk and test, learn and implement new risk rules and payment features in real-time. It should give you access to future-proof, adaptable tools that can be tapped into as the business changes and grows.
PayPal’s solution for enterprises meets all these needs and more. As a platform that has remained at the forefront of the digital payment revolution for over 20 years, PayPal continues to empower over 400 million consumers and merchants in more than 200 markets. With an extensive selection of easily integrated digital solutions, PayPal is helping shape an opportunity-filled future for digital payments, utility companies and their customers.
The article was first published on Utility Week.
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