From AI taking center stage to the rise of vertical-specific payment platforms and embedded payments, the transformation in payment technologies has been extraordinary.

While these trends are still thriving and shaping the payments landscape, 2025 brings with it new opportunities. With non-cash transactions expected to exceed 2.3 trillion by 2027 and real-time payments (RTP) projected to reach $193.1 billion within the multi-rail payments ecosystem by 2030, businesses are increasingly recognizing the urgency to align with shifting customer expectations and growing trends.

For utilities, this shift is equally important. Transitioning from legacy systems to modern payment technologies is no longer just an option—it’s essential for staying competitive, enhancing customer experiences, and optimizing revenue management.

In this blog, we’ll explore the core focus areas for 2025: what’s driving the evolution of payment technologies, how utilities can adapt to these changes, and the key trends that will define the next chapter of payment solutions. Whether it’s upgrading legacy systems, adopting real-time payment (RTP) capabilities, or embracing AI-driven personalization, utilities must stay ahead to remain competitive and deliver exceptional customer experiences.

Let’s dive into the trends shaping 2025 and beyond!

1. The Rise of AI Agents in Payments
   According to CNBC, 75–90% of customer queries are projected to be handled by bots in 2025, signaling a transformative shift in how utilities engage with customers. By 2025, AI-powered agents will redefine payment interactions for utilities, leveraging natural language processing (NLP) and sentiment analysis to address queries with precision and guide customers through end-to-end payment journeys. For utilities, these agents will enable specific capabilities like assisting with bill explanations, offering personalized rate recommendations, and proactively reminding customers about due dates or usage thresholds tied to their payments. The utility sector’s adoption of conversational AI will also focus on unique challenges, such as supporting low-income customers with tailored payment arrangements, managing seasonal billing fluctuations, and integrating with real-time energy usage data for transparent billing. These platforms will not only streamline payment processes but also foster trust by providing 24/7 assistance and ensuring secure, compliance-driven transactions. By addressing these utility-specific needs, conversational AI will emerge as a critical tool for enhancing customer engagement and loyalty in 2025.
2. Energy Prices and Payment Flexibility
   With energy prices remaining volatile, utilities will need to offer more flexible payment options to help customers manage their bills. Customers are increasingly demanding the ability to pay in ways that best suit their financial situation. Flexible payment methods, such as mobile wallets, pay-later plans, and prepayment systems, will gain traction. Prepayment models, where customers pay in advance for their energy, offer greater control over expenses, especially for those recovering from debt or facing financial hardship. By offering these flexible solutions, utilities can better meet customer needs while maintaining a stable cash flow.
3. he War Against Cybercrime in Utility Payment Systems: A 2025 Perspective

   As digital payments continue to grow in the utility sector, the need to safeguard customer data and prevent cybercrime becomes even more critical. Utility companies, like financial institutions, are ramping up their cybersecurity efforts, leveraging machine learning (ML), artificial intelligence (AI), tokenization, and advanced encryption to protect against ever-evolving cyber threats. These technologies are essential in fortifying utility payment ecosystems, ensuring that sensitive customer information remains secure during transactions.

   The rising cost of data breaches underscores the urgency of robust cybersecurity measures in the utility sector. With the financial impact of breaches growing annually—an average of $4.88 million globally—the proactive adoption of security protocols will be vital to prevent fraud and maintain customer trust. In 2025, utilities must adopt an integrated, proactive strategy to combat cyber threats, focusing not just on detecting but also preventing attacks before they occur.

   Utility companies will need to work closely with payment service providers, regulatory bodies, and technology partners to implement security solutions that address vulnerabilities and ensure compliance with local regulations. This collaboration will be crucial for mitigating the risks associated with cyber-attacks and securing the infrastructure supporting digital utility payments. By prioritizing cybersecurity, utilities can offer consumers a safer, more trustworthy digital payment experience, strengthening their brand reputation and supporting the long-term success of digital payment initiatives.

4. Real-Time Payments: A Global Revolution in the Utility Sector

   The real-time payments market is set to experience remarkable growth, projected to rise from $12.30 billion in 2024 to $114.94 billion by 2032, with a compound annual growth rate (CAGR) of 32.23% during this period. This rapid expansion is transforming industries worldwide, and the utility sector is no exception.

   

   Already operational in over 100 countries, real-time payment systems are revolutionizing how utilities interact with their customers. By offering instant payment options, utilities can improve cash flow, enhance customer satisfaction, and streamline billing processes. This shift ensures that customers can make payments instantly, fostering a more seamless and responsive experience.

   The global adoption of the ISO 20022 messaging standard is poised to further boost the capabilities of real-time payments, improving cross-border payment efficiency and enhancing security and compliance. By 2028, real-time payments are expected to account for 27% of all global electronic transactions, with the integration of digital currencies and blockchain technology fueling even greater innovation. For utilities, embracing these advancements means not only speeding up transactions but also creating an ecosystem where cross-border payments and digital assets are handled with ease.

   As utilities adopt real-time payment solutions, they will benefit from reduced delays, improved operational efficiency, and a more flexible, customer-centric payment system that aligns with the evolving digital landscape.

5. The Rise of Vertical-Specific Payment Platforms: Leading the Charge in 2025

   As we move into 2025, the adoption of vertical-specific payment platforms is firmly establishing itself as a dominant trend in the payment industry. Platforms like iPaySmart, designed specifically to meet the unique needs of the utilities sector, are becoming increasingly popular among utility companies and their customers. These platforms go beyond simple payment transactions, offering a comprehensive suite of features that streamline utility billing, payment management, and customer service. By addressing sector-specific challenges such as flexible payment arrangements, bill reminders, and pre-payment plans, vertical-specific platforms create a seamless, user-centric experience that enhances both customer satisfaction and operational efficiency.

   For utilities, adopting these platforms provides numerous benefits, including improved cash flow, reduced friction in payment processes, and increased customer loyalty. Features such as automated payments, detailed billing histories, real-time payment confirmations, and personalized notifications make the payment experience smoother and more transparent for customers. The ability to manage a wide variety of payment methods—credit/debit cards, digital wallets, ACH transfers—makes these platforms more accessible and convenient for users, ensuring they can pay in the way that suits them best. These platforms also help mitigate common issues like late payments and payment disputes, leading to better customer retention.

   Looking ahead, as the global push toward a cashless society continues to grow, the utility sector must embrace vertical-specific payment platforms to reduce its reliance on traditional payment methods. With the integration of advanced technologies like AI and machine learning, these platforms not only optimize transaction efficiency but also provide predictive insights, fraud prevention, and personalized payment recommendations. In this evolving landscape, utilities that adopt these tailored payment solutions will be better equipped to meet the demands of a digital-first world and position themselves as leaders in customer experience and operational innovation.

6. Hyper-Personalization for Every Persona in the Utility Industry

   AI will enable hyper-personalized payment options tailored to each unique customer segment within the utility industry. For residential customers, AI will analyze usage patterns and financial behaviors to suggest the best payment plans, such as tiered rates or budget billing. Commercial customers will benefit from AI-driven insights that recommend cost-saving measures, energy efficiency programs, or customized payment arrangements based on their specific consumption patterns. For low-income households, AI will optimize multiple payment options to ensure affordability while maintaining service. Utilities will be able to offer personalized rate plans for energy traders or municipalities, while also providing EV owners with customized incentives and payment schedules based on their charging usage. By creating tailored experiences for each persona, AI will boost customer satisfaction and increase engagement.

7. Next-Gen Point of Sale (POS) Systems: Digital Wallets and Contactless Payments

   As the global POS system market expands, utilities must evolve their payment systems to meet the increasing demand for digital and contactless payments. With 2.3 billion digital wallet users worldwide, utilities must adapt to these trends by incorporating technologies like NFC-enabled POS systems for mobile wallets, smartwatches, and contactless cards.

   By adopting advanced POS systems, utilities can offer streamlined payment experiences across multiple touchpoints, such as self-service kiosks, mobile workforce tools, and customer service centers. Key benefits include:

   • Streamlined Payments: Faster, contactless transactions improve efficiency and reduce queues.
   • Customer Convenience: Offering diverse digital payment options enhances customer satisfaction.
   • Enhanced Security: Tokenization and encryption ensure data protection, reducing fraud risks.

   These advancements will position utilities to deliver a more connected, secure, and customer-friendly payment experience.

8. Orchestration: The Growth of Payment Routing in the Utility Industry

   What was once known as “smart routing” in payments is now evolving into a more sophisticated concept called payment orchestration. By 2025, payment orchestration will extend beyond simply optimizing transaction flows across multiple payment service providers (PSPs). In the utility sector, this means integrating a wide array of services—such as billing, transaction monitoring, fraud prevention, and compliance management—across different regions, customer segments, and use cases.

   AI will play a crucial role in payment orchestration by making real-time decisions to identify the most efficient routes for transactions, considering factors like cost, speed, security, and regulatory compliance. This will enable utilities to offer their customers faster, more cost-effective payment options, all while ensuring adherence to local regulations and industry standards.

   As competition among orchestration platforms intensifies, it will become increasingly essential for utilities to partner with payment providers and platforms that offer a diverse set of services and support across a broad spectrum of payment methods. This strategic collaboration will empower utilities to deliver seamless, frictionless payment experiences for customers, ultimately driving greater operational efficiency and customer satisfaction.

Strategic Investments Energy and Utilities Should Prioritize

To stay ahead in the evolving payments landscape, utilities should focus on the following areas:

1. AI-Powered Payment Systems: 65% of utilities are adopting AI for real-time fraud detection and personalized payment solutions.
2. Data-Driven Insights: Utilities should leverage data analytics to predict customer payment behaviors and offer tailored plans.
3. Vertically Integrated Platforms: Investing in unified platforms that combine billing, payment management, and customer support enhances operational efficiency.
4. API-Driven Ecosystems: API-driven systems ensure compatibility with diverse payment methods, supporting real-time processing and third-party integrations.
5. Flexible Payment Options: Embrace alternative payment methods such as pre-pay systems, subscription models, and flexible financing to cater to customer needs.

By investing in these areas, utilities can not only meet current challenges but also lay the groundwork for a more connected, inclusive, and innovative payment future.