Utility payment delays experienced by about 1 in 5; top reason is 'forgetfulness' at 39%; 80% of those who received reminders feel inconvenience in payment

xID Inc. (Headquarters: Chiyoda-ku, Tokyo; President & CEO: Hikaru Kusaka; hereinafter 'xID') conducted a 'Survey on Utility Payment Practices' targeting 450 men and women aged 20 to 69 nationwide who had experienced delays in paying utility bills or similar charges within the past year.

[Survey Overview] Method: Internet research / Conducted by: xID Inc. Target: Men and women aged 20–69 nationwide (among 4,800 screening survey respondents, those who experienced utility payment delays in the past year) Number of respondents: 450 Survey period: April 17 – May 20, 2025

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[Survey Results Summary] 1. 18% of people who paid utility bills within the last 3 months (2,681 people) experienced payment delays in the past year. 2. The top reason for delays was 'forgot to pay' at 39%, followed by 'did not know the deadline' at 34%. 3. After receiving a reminder, about 30% (31%) took more than a week to pay. 4. 81% of those who received reminders felt it was 'inconvenient' not being able to pay immediately. 5. 73% said that if a smartphone tap-to-pay were available, it would 'reduce forgetfulness'. 6. 69% said they 'would like to use' a service that completes payment in a few taps.

18% experienced utility payment delays in the past year – about 1 in 5 In the screening survey of 4,800 men and women aged 20–69, those who had been involved in utility payments in the last 3 months (2,681 people) were asked about their experience of payment delays in the past year. Results: 11% had received a reminder, and 7% noticed the delay before a reminder, totaling 18% who experienced utility payment delays. This reveals that about 1 in 5 people have experienced payment delays. The following results are from the main survey of 450 people who experienced delays in the past year.

Main payment methods are credit card and bank transfer; smartphone payment at 6% The main payment methods for utility bills were credit card (35%), bank transfer (31%), and convenience store payment (20%). This suggests that the experience of completing payment from notification to settlement on a smartphone is not yet widespread.

Top reason for delay: 'forgot to pay' at 39%, followed by 'did not know deadline' at 34% The most common reason for delay was 'forgot to pay' (39%), followed by 'did not know the payment deadline' (34%) and 'did not have enough money' (33%). This shows that reasons related to awareness of payment information, such as forgetfulness and lack of deadline awareness, outrank financial reasons.

'Intended to do it later but forgot' at 45% – disruption in payment actions leads to delays When asked about the situation when they forgot or delayed payment (n=391), the top response was 'intended to do it later but forgot' (45%), followed by 'did not check the mail right away' (31%), 'was busy' (26%), and 'buried among other notifications' (24%). This reveals that disruptions in the actions leading to payment cause delays.

Even after a reminder arrives, about 30% take more than a week to pay The speed of response after receiving a reminder: 'within a few days' (40%), 'same day or next day' (20%), meaning about 60% respond within a week. However, 23% took 'more than a week' and 8% 'left it for a while', totaling 31% who remained unpaid for over a week after the reminder.

Reasons for not paying immediately after reminder: financial issues, forgetfulness, leaving paper bills unattended Among those who did not pay immediately after receiving a reminder (n=341), the top reason was 'did not have enough money' (31%), followed by 'intended to do it later but forgot' (24%), 'was too busy to handle it' (22%), 'stored the paper bill and forgot' (21%), 'did not notice / did not see the notification' (18%), and 'lost track of where the bill was' (15%). Multiple reasons related to paper-based payment procedures causing action disruption were cited.

81% find it inconvenient not being able to pay immediately after checking the reminder Regarding the situation of not being able to pay immediately after checking the reminder, 32% found it 'very inconvenient' and 49% 'somewhat inconvenient', totaling 81% who feel inconvenience. This shows that over 80% of those who have received reminders feel some inconvenience in the current payment process.

Need for smartphone-based mechanisms to prevent forgetfulness emerges Effective methods to prevent payment forgetfulness: 'automatic payment setup' (30%) topped the list, followed by 'a system that allows immediate payment after notification' (25%), 'centralized management on smartphone' (23%), and 'visualization of payment deadlines' (22%). This highlights a need for improving the smartphone payment experience.

73% say a few-tap payment on smartphone would reduce forgetfulness Regarding a system that allows completing payment in a few taps after checking a reminder on a smartphone, 25% said it would 'greatly reduce' forgetfulness and 48% said 'somewhat reduce', totaling 73% who believe it would reduce forgetfulness. High expectations for a seamless experience from notification to payment were confirmed.

69% would like to use a few-tap payment service For a service that completes payment in a few taps, 24% said 'very willing to use' and 45% 'somewhat willing to use', totaling 69% showing interest. About 70% of those who have received reminders hope for a new payment experience that can be completed on a smartphone.

Discussion This survey revealed the following realities about utility payment delays: - The reasons for delays are not only 'lack of money' but also 'forgetfulness' (39%) and 'not knowing the deadline' (34%), many stemming from information awareness and action disruption. - Even after a reminder arrives, about 30% (31%) take more than a week to pay, indicating a gap between receiving the notification and completing payment. - While 81% of reminder recipients feel inconvenience in not being able to pay immediately, 73% think a system that allows payment in a few taps after notification would reduce forgetfulness, and 69% would like to use it. This shows a high need for a seamless experience from notification to payment. - These results suggest that it will be important to create mechanisms that not only deliver notifications but also smoothly connect to subsequent actions.