Payit's Survey Exposes Payment Friction Across UK Telcos
Delivering a great customer experience doesn't end with fast connectivity.
According to a new Payit by NatWest survey of UK telco and utility professionals, payment systems are becoming an unexpected source of friction, with legacy processes, data gaps and payment disruption affecting both businesses and their customers.
Nearly a quarter (23%) of respondents say payment processing challenges are worsening customer experience.
Almost every organisation surveyed (99%) has experienced payment disruptions.
The findings from the survey suggest that billing and payments could be the next challenge for telco providers to solve.
How are data gaps costing telco providers?
The research finds that a lack of access to consented customer financial data is one of the biggest obstacles facing telco providers.
Without information such as affordability and account data, businesses are left with what Payit describes as a "data gap".
That makes it more difficult to assess credit risk, offer suitable payment plans and provide the right support to customers who may be experiencing financial difficulties.
The impact is being felt across payment operations.
- 26% of survey respondents report cash flow issues linked to payment disruption.
- 28% cite fraud and security concerns.
- 34% say they struggle with late payments.
- 29% are working to improve checkout journeys and payment processes.
The appetite for better access to customer information is clear.
Four in five respondents say synchronising customer financial data with billing profiles would enable faster, more accurate assessments while helping businesses identify and support vulnerable customers more effectively.
James Hodgson, CEO at Payit by NatWest, says: "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."
Do legacy payment systems continue to dominate?
The simple answer is, yes. But at a cost.
Despite recognising the benefits of modern payment tech, many telcom providers and utilities are still relying on traditional methods.
The survey found that 43% rely on card payments and 42% use traditional bank transfers.
By comparison, only 36% have adopted Pay by Bank or Open Banking solutions.
That reliance on legacy infrastructure may be contributing to many of the challenges highlighted by respondents.
Traditional payment methods often require more manual administration, increase the likelihood of payment failures and offer fewer opportunities to access real-time financial information that can support smoother customer journeys.
Open Banking provides an alternative by enabling instant account-to-account payments alongside secure access to consented customer financial data.
This can help reduce payment failures, strengthen fraud prevention, support faster affordability assessments and reduce the time spent managing customer payment information.
How is customer experience paying the price?
The consequences extend beyond finance teams and into the customer relationship itself.
- Half of respondents say payment delays deter customers from completing transactions, resulting in lost business.
- Just over a fifth (21%) acknowledge payment issues are affecting customer satisfaction and retention.
- 17% say current payment processes prevent them from meeting customer demand.
For telco providers competing in a digital market, the survey suggests that improving the payment experience is becoming as important as improving the services customers rely on.
Modernising payment infrastructure and making better use of customer financial data could help businesses remove friction from billing while supporting faster, more reliable customer journeys.
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James Hodgson
CEO of Tyl and Payit