Utilities operating in challenging market conditions know that improving their digital service capabilities is a must. While the sector is generally moving from a low base, playing catch up offers the opportunity for firms with the right attitude to technology adoption to leapfrog forwards.

The heavy emphasis on improving customer payments journeys which came across in the insights offered by our industry panel as well as in 1-2-1 interviews is unsurprising – indeed reassuring. The ongoing cost of living crisis means that more customer attention than ever before is going to be placed on their bill. Being able to offer seamless and flexible experiences for making payments is a key step towards easing potential friction around this transaction.

Having payment journey which proactively educates and informs the customer about the value they have received from their provider and which offers advice around ways they can reduce their bills should also help utilities cement positive relationships with their customers – a necessity as the sector forges deeper into a period of significant change and challenge on the road to a more sustainable future.

Decarbonisation and water scarcity mean utilities will be striving over the next decade and more to prompt behaviour changes and introduce new ways of charging which incentivise sustainability and protect resources. Offering a choice of payment methods which customers know and trust can support greater variety in tariff structure will stand utilities in good stead though this time.

It's also clear from our panel and interviewees that improved digital performance, including smarter payment options which offer a variety of ways to make payments on the go, are an important tool for bosting satisfaction among next generation customers.

Gen Z, a fully digital native generation, is now truly beginning to influence the development the market. Utilities have understandably needed to sustain a significant “analogue” service capability to date in order to ensure that non-digital customers can continue to be cared for.

We must, of course, always remain alert to the scope for digital exclusion and the needs of vulnerable customers. But looking to a future which will demand big upticks in efficiency and innovation across the sector, we cannot hold back from unlocking the benefits that digital service improvements can offer.

While our panel told us that legacy technology, budget constraints and talent availability are potential barriers to progress, it was positive to hear from our interviewees that companies are finding ways to overcome these challenges – powered along by a need to develop digital products which will make a real difference to customers.

As utilities continue to break down barriers to progress and embrace digital opportunities, PayPal stands by the sector, ready to share the benefits of our experience transforming global markets and to help straddle resource and skills gaps through strategic partnership.

Our end-to-end suite of payment processing, checkout and risk management solutions power some of the one the largest utility companies worldwide. And as the preferred online payment option for the UK consumers and the brand they trust to keep their payment secure, PayPal can help the UK utility companies to stand out from the crowd. Learn more about PayPal payment solutions for utilities on paypal.com/uk/utilities.