Study Finds Bad Billing Experiences Delay $330 Billion in Consumer Payments Each Year

A recent study reveals that poor billing experiences cause a loss of $330 billion in consumer payments annually. "The Service Commerce Performance Gap," a PYMNTS Intelligence report, examines the ongoing relationship between service providers and customers through bills, payments, messages, and customer support. The two-part study, conducted in March 2026, surveyed 2,566 U.S. consumers and 240 billing decision-makers across auto loans, healthcare, home insurance, and utilities.

Consumers expect clear charges, flexible payment options, and fast help when issues arise, but many providers prioritize low-cost bill delivery over customer satisfaction. While 41% of consumers would prefer to pay recurring bills with a digital wallet, only 10% can do so. Over half of consumers prefer credit cards, but just 18% actually use them for these payments.

Providers offer payment extensions to 77% of customers, yet only 15% allow customers to request them through self-service tools. Many customers must call for assistance before they can adjust their payment methods.

Generation Z, in particular, is frustrated with billing problems. They rate industries 12 to 16 points lower than baby boomers and find the payment process frustrating or time-consuming. This dissatisfaction can lead to future payment delays and customer losses. The report also highlights where providers are investing, even though customers report more problems with payment choice, flexibility, and support.

Legacy technology adds to the challenge, with 70% of providers saying older systems limit their ability to improve billing. The findings provide billing, payments, and finance leaders with a clearer view of customer experience and help customer service and digital strategy teams identify changes that can lead to faster payments and stronger relationships.