Crypto and electricity bills: from arcane to mainstream
Now is the time for energy companies that have not yet embraced digital payments. In 2020, digital wallet adoption globally increased to 55%, and industry experts predict it will reach 75% by 2025. It is also increasing the demand for expanded payment options, critical to achieving the accessibility and convenience people increasingly expect in all areas of their lives .
In addition to improving the customer experience, modernizing collections processes streamlines the payment process for utility workers, leading to higher employee satisfaction across all types of organizations. Some benefits include less employee burnout, increased on-time payments and a path to more efficient and profitable organizations. According to the US Bureau of Labor’s latest job openings and labor turnover reporttool ranked among the highest for increases in vacancies, meaning there are fewer people handling billing-related customer calls and in-person visits.
Tools that drive payers to use digital solutions won’t suffer the sting of a smaller workforce since digital channels and self-service options are key to freeing employees from time-consuming manual tasks. Instead of chasing late payments or fielding countless customer inquiries, digital payments act as a force multiplier, enabling employees to spend time on high-priority projects, increasing overall output, organizational efficiency and employee morale.
Provide digital payment options
Optimizing revenue is a priority for any organization, and access to expanded payment channels is a viable approach for success. Proprietary customer data suggests that more options reap more benefits, and billers that offer a robust electronic billing and payment platform (EBPP) confirm this. Nevertheless, the effectiveness of an EBPP platform should be measured in terms of how well it drives customers to self-service. Engaging platforms will drive more customers to self-serve by making online payments, using paperless invoicing and other options. Self-service routes create time and cost efficiency, but the real key lies in the speed of use and an understanding of what makes customers adopt online payments.
These include:
- Do customers have to jump through hoops to pay or view their bills?
- Is it easy for customers to make an online or mobile payment?
- Can customers quickly and easily register for paperless invoicing or invoice payment reminders?
- Are customers engaged at all available touch points?
- What opportunities do customers have to pay their bills?
Digital payments are already hugely popular in the US – over 80% of Americans made a digital payment in 2021, according to McKinsey. Adoption of online payments and self-service is heavily dependent on the ability to offer flexible payment options. Ours investigations shows that most payers’ preferred channels include online payment portals (43%) and mobile devices (35%). But there is a new payment option, and early adoption is showing significant promise: cryptocurrency.
Cryptocurrency and customer experience
Cryptocurrency is at the forefront of today’s fintech trends and is becoming increasingly popular for paying bills. Special, new research finds that a surprising number of people – 36% – would accept part or all of their paycheck in cryptocurrency, clearly drawing a line between growing curiosity and actual use of the digital currency.
Billers, including energy companies, are adopting crypto to extend their commitment to providing convenient and engaging payment options. This is good news for utilities striving to improve efficiency and productivity, reduce costs and remove friction from payment processes. Despite existing challenges, delivering an exceptional customer experience remains important and cannot be overlooked.
If you ask your parents or grandparents to explain cryptocurrency, they are unlikely to give an accurate answer. The concept is still relatively new and is often confused with technology; Crypto is currency backed by technology to facilitate instant payments. But it won’t be long before the term becomes more widespread as more and more billers allow customers to sell cryptocurrency for fiat money (government-backed funds, like the US dollar) that can be used to pay outstanding debts and bills.
Utility companies are increasingly offering cryptocurrency as a viable option for paying monthly bills. City leaders explain that embracing virtual currency gives residents more ways to pay their bills, raise money, create excitement and increase trust in digital formats. Customer experience remains king, and as digital currency and blockchain advance, invoice issuers at the forefront of this technology will set themselves apart from the competition.
Regardless of payment method, customer data shows that alternatives are valued, and providers can gain critical benefits by providing customers with the convenience they want. For supply organizations, increasing self-service options lead to:
- Fewer personal customer visits
- More consistent collections at the right time
- Reduced organizational costs
- Fewer service interruptions
- Reduced call volumes
- Higher customer satisfaction
The demands and expectations of today’s energy customers are constantly evolving, especially when it comes to how they receive bills and pay for services. To keep pace and reap the benefits of increased electronic payment adoption, vendors must expand user-friendly payment experiences designed to improve conversion rates. Furthermore, delivering innovative options like crypto highlights the forward-thinking cities that are looking for ways to stand out, and by default, they demonstrate their leadership at the forefront of new technologies.
About the Author: Sara Faied is VP Processing Transformation at InvoiceCloud, a Massachusetts-based provider of online payment solutions. With 15+ years of payments experience, she has a proven track record of implementing new technologies and developing new processes.
