The utility sector in the U.S. is growing at a phenomenal pace. There were almost 1700 electricity providers in the U.S. in 2020, serving 156 million customers. That number has evolved in the last two years; we now have around 3000 electric utility companies. However, the number of consumers has almost remained the same. These were some statistics about electricity providers only. There are thousands of other utility companies in the following sectors:
The new entrants in this space have created a more competitive market and forced existing utility companies to develop new ways of customer facilitation. That said, digitalization has become a way of doing things, but utility companies are falling behind. Studies by PYMNTS.com show that bill and payment processing is a feasible option for 53% of utility and consumer finance corporations, but only 12% of these firms actually use digital channels.
Integrating digital payment channels into workflows automates several critical processes. This article will help you discover
Profit maximization is the ultimate goal of any business entity. Here is how utility service providers can benefit through online bill collection:
ACH payments are not new in the utility sector. Both companies and customers prefer setting up a recurring payment system over ACH networks. ACH usually works in two ways:
ACH payments ensure that customers don’t need to pay their bills manually every month, thereby avoiding late payment fees. On the other hand, utility companies can collect payments fast without bothering their customers. Learn how to set up recurring ACH processing for utility bills.
Customers can use credit cards to pay utility bills in different ways. One, they can make monthly payments manually. Two, they can set up recurring payments and automate the bill payment process.
Utility companies usually prefer partnering with secure, third-party payment processing gateways to automate their internal workflows. Such automation helps them reallocate their resources to more important matters, such as handling customer grievances. Credit card payments attract customers because they get cash back or reward points.
Collecting bill payments through SMS is a simple and fast process that works in two ways:
However, the SMS payment link should be a PCI-complaint online portal to minimize security threats.
IVR payments became more popular during the COVID-19 lockdowns. Although 82% of the American population now prefers digital payments, the elder generation may not be comfortable with it.
IVR is an easy online payment gateway for the elderly audience that doesn’t like complex internet payment methods. This technology lets companies quickly and safely collect utility bill payments over the phone. It is a cost-saving approach for companies since they don’t have to hire dedicated call centers or live agents.
Hosted Payment Gateways are a highly affordable utility bill collection method that offers the following benefits:
Email invoicing helps utility companies dispatch a massive number of invoices daily. It allows the companies to share a secure payment link, and the customers can pay in any manner they prefer. Email invoicing eradicates the need to send paper utility invoices, helping companies save millions in collection and postage fees.
Virtual terminals are secure and easily accessible web pages that allow utility companies to manage payments collected via various online payment methods. Virtual terminals are:
Cash discount programs help utility companies save payment acceptance costs of credit card payments. They encourage customers to pay via ACH or cash to save on processing fees. Using such programs, utility companies:
Digitalization is the way for any business sector, including utility companies. Studies show that traditional payment collection methods are riskier, as 66% of organizations encountered check fraud in 2020. Businesses and merchants are partnering with licensed third-party payment processing solutions, like iCheckGateway.com, to minimize the need for in-house technologies.
iCG offers multiple payments gateway technologies and complementary payment solutions like:
Become a partner with iCG, a Nacha-Preferred Partner, to accelerate payments simply, securely, and reliably.