Levels of water bill debt are on the rise, according to this report from Credit Connect in May 2026 (Credit Connect, May 2026).
Water is an essential service, with a higher concentration of vulnerable customers than many other sectors. This makes the handling of late payments a sensitive issue.
The sector is subject to significant regulatory oversight, which means customers who go into arrears have options for seeking help with water bill debt.
Settling the debt should not add additional stress or anxiety, and particularly for the vulnerable customer, payments need to be simple and straightforward.
Part of the answer may lie in Open Banking solutions.
Common payment challenges for water companies
Traditional water bill payment solutions can present challenges when it comes to managing late payments.
Manual input on the customer side can lead to abandoned payment journeys.
For example, the need to remember long card numbers or bank account details could result in interrupted journeys where customers may not return to complete the payment.
There’s also a degree of manual intervention required for water companies looking to update expired payment details.
These delays can result in frustration, additional late payment charges and reputational damage.
Quicker, more streamlined journeys can help manage arrears while maintaining a positive customer experience.
Customer expectations around fairness and ease
Increasingly, customers expect to be able to handle all their interactions with businesses online. Ease and speed are fundamental to the experience.
That means simple payment journeys, transparency and trust. Anything that introduces doubt or complexity may create friction for the customer and reputational damage to the water supplier.
Water companies considering an automated billing system need to make sure that it feels intuitive and trustworthy, which may impact customer perception.
How Open Banking could support better water payments
Open Banking solutions could help deliver faster settlements thanks to consent-based account-to-account transfers.
The ability to verify payer and payee through Account Information Services (AIS) may also help reduce administrative burden and lead to less manual checking for finance staff.
The benefit for customers making water bill payments is improved reliability, supporting a more consistent payment experience.
Affordability, vulnerability, and better data
For water companies looking to provide support to vulnerable customers, accurate information about customer financial position is important.
Without a reliable picture of customer finances, suppliers may be unable to accurately assess water bill affordability or offer appropriate support.
Traditional affordability assessments have limitations – customers are required to provide accurate information on any benefits received or medical conditions requiring higher than average usage, which require manual review and verification.
Open Banking solutions allow customers to securely share financial data with their consent, so this information can be obtained in a more consistent and efficient way, without the need for time-consuming evidence collection on the customer-side or checks for the business.
Better outcomes for providers and customers
More efficient payment processes can offer benefits for both providers and customers.
Fewer complaints due to failed payments may create more capacity for customer support teams, meaning greater consistency and fairness when dealing with issues.
Less time spent resolving payment-related issues may also help reduce operational costs for the business.
How Payit helps water companies modernise payments
Payit by NatWest offers a secure, bank-backed approach to Open Banking, designed to support efficient payment processing and help improve payment journeys.
It has been built for essential service providers and industries with a heavy regulatory burden, with customer protection considerations built in, and all the expertise of an established bank.
Keen to hear more about how we can help your water business? Get in touch with us at [email protected].
*You will need to sign up to Payit terms and conditions and you may need to hold an account with us. Your business must be based and trading in the UK with a turnover above £2m. You must be 18 years or older. Fees apply. Speak to a NatWest Relationship Manager (where relevant) for further information, or request a call back.