PYMNTS Intelligence: Improving the College Payments Experience

Innovation is needed to improve the college payments experience.

Given the range of problems riddling the current payments infrastructure at many colleges, it is clear that innovation is needed. This is especially true because students are increasingly expecting convenient, technology-driven experiences. These range from paying with their phones to keeping track of their financial obligations through one app or online portal. These experiences also include using their ID cards to swipe into buildings and function as debit cards.

At present, many colleges are struggling to provide such experiences. School officials are largely aware of this and are actively seeking out solutions. At the top of their list is better accounts receivable technology. PYMNTS found that 53% of school financial leaders say they need to expand their billing and subscription management capabilities. A striking 7% of these officials said they need to introduce such capabilities, reflecting how many schools do not currently even have rudimentary payments systems in place.

Financial leaders at colleges are also interested in innovating their payments infrastructures in other ways. The ability to offer flexible payment experiences is among the top types of functionality in which schools are interested.

• According to PYMNTS’ data, more than 80% of financial leaders at four-year universities are interested in offering flexible payment plans tailored to individual student needs.

• The same survey found this number rose to 95% for financial leaders at two-year universities.

ID Cards are a prime area for innovation.

In some cases, schools have already begun innovating. More than 500,000 students at 100 educational institutions have added NFC-enabled digital campus cards to their digital wallets. More schools are likely to follow this trend, as 52% of higher education executives believe ID management automations are compelling innovations in driving enrollment. Thirty-five percent believe this innovation would help their schools attract and retain skilled faculty and staff.

Many institutions are interested in innovating ID cards because they can deliver a range of benefits and functionality. The use of NFC-enabled cards, for example, allows students to verify their identities, access buildings and make contactless payments on campus from their phones. ID management technology can also be used in unconventional and innovative ways. Schools can use this technology to automate recurring student support tasks and frequently asked questions, identify real-time behavioral trends and optimize resource allocation. Other use cases include the following:

Mobile access

Automated refunds and payments through mobile devices

Self-service and remote permissions management for student and staff IDs

Equipment tracking

Administrator access to trending behaviors and campuswide finance data

Order-ahead dining services and products