Severn Trent Water is the first utility to offer non-direct debit customers the option to pay their bills using Barclays Pingit.
The app is a secure way to pay bills from any location, so long as customers have their bill, a mobile phone or tablet and a UK bank account.
Customers simply scan the QR code that is on their bill via the Barclays Pingit app downloaded onto their device to make a payment.
Rosa Legassick, who managed the new mobile payment programme for Severn Trent Water, said: "This technology has only been available for a short time and we wanted to embrace it as quickly as possible. We're the first utility company in the UK to offer customers the choice of paying with Pingit."
Angela Hunter-Dobson, director of customer services for Severn Trent, said: "Easy access to multiple channels that are effortless to use is a non-negotiable requirement for today's consumer. In deploying Pingit we are offering greater choice with a straightforward payment facility to our increasingly mobile customer base."
The Barclays Pingit app is free to download from the Apple App Store, Android Market and BlackBerry App World, and is available to anyone with a UK bank account.
Severn Trent Water says it is also expanding its "on the go" services for customers with the launch of a new mobile website. This lets customers more easily access vital services, such as viewing their bill, making a payment or reporting a leak.
Earlier this year Severn Trent continued its IT transformation plan by bringing in IT services provider Azzurri to provide a managed 1,000 seat contact centre, and support an enterprise mobility roll-out for 5,000 users.