Colleges and universities face significant challenges today, from budget pressures and declining enrollments to the need to enhance payments and other services while cutting costs. Amid these challenges, the imperative to align campus services with the expectations of a digitally native student body is increasingly pressing.
Generation Z and emerging Generation Alpha are digital natives with tech-forward expectations that are driving more user-friendly, mobile and seamlessly integrated payment options. Research shows that 72% of students think their college should make ease of payments on campus and online a priority to create a better student experience.
This not only highlights a gap between student expectations and campus payment offerings but also poses a critical question: Are universities truly meeting the payment technology needs of the very demographics they aim to serve?
High cost, high expectations
With rising tuition fees approaching six-figure sums annually at some schools, students and their families not only expect, but demand a premium educational experience that transcends academics. College Board reports that the average annual tuition for a private four-year college in the U.S. is $41,540, with some institutions exceeding $90,000. Such high costs set the expectation for top-tier amenities, including the latest in campus technology.
Demand for integrated payment experiences
Students’ daily tech experiences far outpace the digital upgrades happening on campuses, leading to significant frustration. This gap underscores the urgency for universities to upgrade and align their digital infrastructure to meet the needs of today’s learners.
For example, students seek modern, convenient and intuitive payment experiences everywhere, including on campuses. They want these to be easily integrated into their digital experience and available whether on campus or through remote learning. And they want to pay with the easiest and most convenient method.
A staggering 79% of Gen Z students embrace digital wallets with 49% of Gen Z reported being “extremely interested” in using digital wallets to store documents. In fact, 10% of Gen Z say they rarely or never carry a physical wallet anymore. These insights clearly signal that modern, integrated payment solutions are not just preferred but expected to keep up with the digital savviness of today’s students.
Overcoming operational challenges
Despite the pressing need for modernization, budget constraints and outdated student information systems frequently obstruct the efficient management of campus payment operations. However, implementing a payment service provider can quickly boost efficiency, strengthen security, and ensure compliance with industry standards such as PCI DSS.
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In addition, colleges can streamline payment processes and improve data accuracy while significantly reducing the risk of errors, providing a better experience for staff and students. This is especially crucial as these systems are often siloed, creating significant hurdles in managing and enhancing payment experiences across diverse departments and campuses.
Universities have a variety of options to change this narrative. By integrating payment solutions that are integrated with enterprise resource planning or student information or finance systems, universities can streamline administrative processes, enhance financial operations, and bolster overall efficiency and transparency. This integration ensures consistent and accurate reflection of payment and financial data across all systems. Adopting such a comprehensive approach is important for colleges aiming to establish themselves as forward-thinking, modern schools aiming to meet the needs of their student body.
Ensuring security and building trust
Adhering to stringent security standards like PCI and SOC 2 is paramount, not just for protecting sensitive data but also for building trust among students, who expect secure and seamless interactions. Emphasizing robust information security measures helps universities stand out as leaders in the education sector, fostering confidence, and satisfaction among their student populations.
Moreover, the integration of these technologies goes beyond streamlining and security; it also offers opportunities for data collection and analysis, which can drive further improvements in student services and campus management. Universities that harness these insights can better tailor their services to meet the evolving needs of their students, thereby improving satisfaction and retention.
Ensuring that payment systems comply with ADA accessibility standards is also critical. Accessibility is a fundamental aspect of security and trust, as it ensures all students, including those with disabilities, can use the systems efficiently. By integrating ADA compliance into payment solutions, universities demonstrate their commitment to inclusivity and equal access, further building trust and satisfaction among the entire student body.
Projecting a modern campus
There is no time to waste for colleges and universities to focus on the technological demands of students so they can remain competitive in an increasingly challenging enrollment environment. Providing integrated payment experiences gives students what they expect while improving operational efficiencies, enhancing vital security, and uncovering valuable insights for the university. Colleges and universities are facing challenges but prioritizing the expectations of the digital-native student body projects a vibrant, modern campus ready to help its students excel.
