Utility payments are at a crossroads. Traditional energy and water suppliers are transitioning to digital-first models, but much of the underlying payment infrastructure remains outdated. At the same time, new services – from EV charging to solar production – demand faster, more flexible ways to pay and get paid.
It’s no longer just about collecting a bill; it’s about instantaneity, accuracy, and empathy. Customers expect payments to be quick and seamless, while providers need reliable cash flow and fewer administrative headaches.
Open banking and instant payments provide the solution. By combining secure bank-level authentication with real-time access to account data, utilities can modernise payment processes, improve customer experiences, and unlock smarter ways to manage revenue.
We’ll explore the technology behind open banking for utilities and highlight four ways instant payments and open banking are solving common payment pain points – from onboarding and affordability to faster, more flexible transactions.
The technology behind open banking
At its core, open banking is refreshingly simple. It allows customers to use their own bank’s trusted security to make payments or share financial information – without cards, passwords, or manual data entry.
For utility providers, open banking unlocks two powerful capabilities: instant payments and instant insights.
Instant payments (PIS): faster, simpler bill settlement
Payment Initiation Services (PIS) enable instant account-to-account (A2A) payments – often branded as Pay by Bank. Instead of entering card details or waiting days for a transfer to clear, customers approve a payment directly in their banking app, and the money moves in seconds.
For utilities, this means faster settlement, improved cash flow, and fewer failed or delayed payments. There’s no risk of expired cards, no chargebacks, and no manual reconciliation. For customers, it’s a smoother experience: one click, bank-level security, and immediate confirmation that their bill is paid.
You might also be interested in: The Essential Benefits of Using A2A Payments for Bills and Invoice Payments
Instant insights (AIS): real-time data, better decisions
Account Information Services (AIS) provides access to real-time, customer-consented bank data, enabling utilities to verify account ownership, support Know Your Customer (KYC) checks, and gain a clearer picture of payment behaviour – instantly.
This is particularly valuable for utilities managing recurring billing, payment plans, or refunds. Instead of relying on outdated records or manual checks, providers can confirm details upfront, reduce errors, and respond more quickly when customers need support. In some cases, AIS can also help assess affordability or flag potential payment issues earlier, enabling more proactive customer engagement.
Why it matters for utilities
Together, PIS and AIS turn payments from a back-office function into a smarter, more responsive part of the customer journey. Bills are paid faster, refunds can be issued instantly, and customer support teams have better information at their fingertips.
In an industry where reliability, trust, and speed matter, open banking provides the technology foundation utilities need to modernise payments – without adding complexity for customers.
Four ways open banking payments are solving utility pain points
From late and failed payments to slow reconciliation and high operational costs, utility providers face a unique set of payment challenges. Open banking-powered payments offer a practical solution. Here are four ways open banking is helping utilities overcome common payment pain points – while improving cash flow and customer experience at the same time.
1. Real-time onboarding and KYC
One of the biggest pain points for utility providers is right at the start of the customer relationship. Manual entry of IBANs or account numbers often leads to errors, failed first payments, and unnecessary follow-up work for customer support teams.
With open banking, customers simply connect their bank in seconds. Using AIS, utilities can automatically verify the account holder’s name and details, ensuring the person signing up for an energy or utility contract is exactly who they claim to be.
The result is smoother onboarding, fewer administrative errors, and a significantly lower risk of first-payment failure, establishing a stronger, more reliable customer relationship from day one.
2. Managing affordability with empathy
In the utility sector, identifying vulnerable customers shouldn’t be a reactive process that only begins once debt has already built up. Open banking enables a more proactive – and empathetic – approach.
By leveraging customer-consented account information, suppliers can introduce smart affordability checks. Instead of relying on assumptions or rigid rules, real-time balance snapshots help utilities suggest payment plans that are genuinely sustainable for the customer.
This approach protects customers from unnecessary fees and financial stress, while also reducing missed payments and bad debt for suppliers. It’s a win-win: better outcomes for customers, and healthier, more predictable revenue for utilities.
3. Capturing the ‘missing middle’ of payments
Direct Debits cover most customers, but one-off top-ups, arrears, or those who prefer more control usually rely on card payments – which can be costly and prone to failure.
Brite Instant Payments offers a faster and more efficient alternative. It combines the speed of a card with the cost efficiency of a bank transfer, while funds settle directly into the utility’s account immediately. Payments are authenticated securely through the customer’s banking app using Face ID or fingerprint, making them more secure than traditional card-on-file systems.
For utilities, this means faster settlement, lower fees, and fewer failed payments. For customers, it’s a convenient, secure, and flexible way to pay outside recurring billing, covering the ‘missing middle’ that Direct Debits alone can’t handle.
4. Faster payments
Paying bills is a necessity, but it doesn’t have to be a tedious process. For telco and utility providers, legacy methods like Direct Debit and manual bank transfers can create delays. Manual data entry and batch-processing cycles often leave businesses waiting several days for funds to settle. Not only is it frustrating for customers, but it also creates cash flow risks and extra administrative work.
Brite Instant Payments bridges this gap with speed and reliability. Powered by its proprietary Instant Payment Network (IPN), customers can authenticate and pay in seconds – no IBAN entry, no card numbers, and no multi-day waiting periods. Payments move 24/7/365, allowing utility providers to settle invoices and process top-ups instantly.
The result is a frictionless, ‘one-click’ experience for customers, while businesses gain immediate liquidity and operational efficiency. By replacing slow, legacy processes with instant, real-time payments, utilities can turn a routine chore into a competitive advantage.
Looking ahead: The future of utility payments
Open banking and instant payments are transforming the way utilities handle money. By combining speed, security, and real-time insights, providers can simplify onboarding, reduce failed payments, manage affordability with empathy, and deliver a seamless experience for every customer.
As adoption grows, instant payments and payouts will move from being a premium feature to a standard expectation. Utilities that adopt these technologies will not only enhance cash flow and operational efficiency but also foster stronger, more trusting relationships with their customers.
In 2026 and beyond, fast, frictionless, and intelligent payments won’t just support utility operations – they will define them.
Conclusion
The evolution of utility payments is no longer a distant prospect; it is a current necessity. As the industry navigates the complexities of energy transitions and rising customer expectations, the demand for an agile, secure payment infrastructure has never been more urgent. Open banking reimagines the relationship between a utility provider and its customers, grounded in transparency and speed. By embracing real-time technologies, providers can eliminate the friction of legacy systems and focus on what truly matters: delivering reliable essential services.
Ready to transform your payment strategy? Discover how Brite Instant Payments can unlock instant processing, boost operational efficiency, and enhance your customer experience – contact our sales team today.
