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Payments 2025 Utilities
How utilities can power a friendlier future
Utilities companies have the opportunity to power positive change in the ecosystem of the future. It’s a place where customers can enjoy positive experiences, businesses can protect their profits, and innovation can help manage environmental impact. It’s made possible, in part, by an optimized payments process. Explore this ecosystem to see where we could go from where we are now – and discover some of the ways optimized payments could help you make the future friendlier.
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Friendly for your customers
Friendly for your business
Friendly for our planet
Payments 2025 highlights the key trends shaping the future of payments across key industries. Using our years of experience and leveraging our vast network of specialists from across the industry and beyond, we share expert opinions and recommendations. We explore the social, economic, technological, and environmental factors that will shape the next few years, so we can help you prepare for tomorrow.
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Business
Cash flow
Customers
Planet
Super-apps
Environmental impact
Embedded finance
Fraud
Smooth path to renewables
Energy shops
Start powering positivity with payments
HOW’S THE VIEW?
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Sources 1 PYMNTS. 2021. How US Consumers Define the Super App. Available at: https://www.pymnts.com/ connectedeconomy/2021/how-170-million-us-consumers-define-the-super-app/. [Accessed 17 August 2022]. 2 PYMNTS and FISPAN. 2021. Next-Gen Commercial Banking. Available at: https://www.pymnts.com/tracker/next-gen- commercial-banking-b2b-payments-corporate-finance/. [Accessed 17 August 2022]. 3 McKinsey & Company. 2022. How European industry can respond to spiking energy prices | McKinsey. [ONLINE] Available at: https://www.mckinsey.com/business-functions/operations/our-insights/outsprinting-the-energy-crisis. [Accessed 17 August 2022]. 4 Eligo Energy. 2020. Millennials Are More Likely to Switch Electricity Suppliers Than Other Demographics. Available at: https://www.eligoenergy.com/reports/survey-millennials. [Accessed 17 August 2022]. 5 Chargebacks911. 2022. Chargeback Costs: The Shocking Truth in 2022. [ONLINE] Available at: https://chargebacks911.com/chargeback-costs/. [Accessed 17 August 2022]. 6 Smart Energy International. 2020. Energy Theft and Fraud Reduction. [ONLINE] Available at: https://www.smart-energy.com/industry-sectors/energy-grid-management/energy-theft-and-fraud-reduction/. [Accessed 17 August 2022]. 7 McKinsey & Company. 2022. Global Energy Perspective 2022 | McKinsey. [ONLINE] Available at: https://www.mckinsey.com/industries/oil-and-gas/our-insights/global-energy-perspective-2022. [Accessed 17 August 2022].
Get in touch with us to map out a new level of user friendliness, payment flexibility, business growth, and positive environmental change.
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The utilities landscape of the future looks like a friendly place, doesn’t it? Well, it’s not so hard to reach from where we are today – and it could start with optimizing your payments process with Worldpay.
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A total of 64 countries
7
accounting for 89% of global CO2 emissions – have committed to net-zero.
The utilities industry plays a significant role in carbon emissions – but it can also lead in sustainable practices. Optimizing payments to be more cost-effective, reliable, and secure could not only level the playing field for up-and-coming renewable suppliers, but also speed digitization and help utilities ditch paper bills.
Taking decisive environmental action could encourage others to protect the planet.
Friendly for:
Two thirds of US consumers
1
want to see at least two of their regular digital activities combined into one app.
The super-app is a new breed of umbrella app that could allow customers to manage their utilities as part of a full ecosystem of services. To become one, single-use apps need to integrate with payments, incorporate third-party services, and use customer data to shape the experience around individuals’ preferences. You could even team up with your peers to offer multiple utilities – water, gas, electricity, and more – in one place.
One platform could make it easier for customers to manage and pay for all their utilities – and control their consumption.
Embedded finance will reach a
2
value globally in the next 10 years.
Card-on-file commerce, the same method used by utilities companies to collect payments, is growing in other sectors. Customers seem to prefer it as, with all the finance embedded behind a website or app, they don’t need to manually enter their payment details every time. And businesses seem to prefer it as it creates a steady stream of reliable income.
Payment methods stored on file could drive higher sales, retain customers, and streamline operations.
Chargebacks are estimated to cost merchants like utilities companies
5
by next year.
The cashflow of a utilities supplier depends on maximum payment acceptance – which depends on a payments process that’s as smooth as possible. Between embedded finance and alternative payment methods, utilities companies can not only create seamless customer experiences, but also minimize chargebacks, maximize acceptance, and manage their cashflow.
High payment acceptance can provide peace of mind at a time when energy supplies, prices, and cashflow are uncertain.
Fraudsters are responsible for
6
in the global energy sector every year.
It’s not just making ends meet to pay their bills on time – customers also have to contend with the constant threat of fraudsters. Utilities companies can protect their customers using AI and machine learning models to learn from previous attacks, predict and prevent future threats, and protect themselves from bad press or a hefty fine.
AI fraud detection could help protect customers’ personal information and the company’s reputation.
42% of US consumers
4
say they wouldn’t change energy suppliers – even if they could save money or switch to renewables.
In an uncertain time for energy consumers, the main thing is to know they can pay for their consumption. Utilities companies can alleviate some stress by accepting alternative payment methods. With the flexibility to pay their way, customers may be more comfortable switching to you – safe in the knowledge they can enjoy new benefits without missing a beat.
More flexible payment experiences could give customers the confidence to switch to you.
3
The first quarter of 2022 saw short-term gas prices in Europe rise to
In the near future, consumers could have access to decentralized marketplace apps as part of or on the side of their utilities contracts. At these one-stop shops, they’ll be able to exchange their excess energy or water with other users – and might even sell energy they produce themselves through sources like solar or wind.
5x their 2021 average.
