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4 Ways Cashless Payments Connect Higher Education Campuses

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4 Ways Cashless Payments Power Connected Campuses

Today’s colleges and universities are increasingly focused on creating connected campuses that elevate the student experience. From tuition and financial aid to housing and meal plans, digital payments are an essential part of the equation. In fact, a 2023 study revealed that 90% of college students are interested in using their phones to pay for food and campus services.1

Digital enablers and software providers play a key role in helping higher education institutions deliver more secure, streamlined, and advanced payments solutions. As the demand for cashless transactions grows across campuses, here are four ways digital payments at colleges and universities are evolving.

  


1. Mobile transactions and instant payments

Higher education is in the midst of a digital transformation driven by a fundamental shift in student behavior. Today’s students live in a mobile-first world, and they expect their colleges to offer the same convenience they’ve grown accustomed to in off-campus transactions.

Today, 95% of students interact with their university through at least one app, and 84% use their smartphones for payments.2 What’s more, students are increasingly placing their trust in alternative payment methods like Venmo and Zelle. 

In response, universities are actively adopting all-in-one platforms to facilitate mobile transactions and foster a connected campus environment. These platforms cater to students’ preferences for instant payments and on-the-go convenience, but their benefits extend beyond student satisfaction: They can also improve financial efficiency.

To keep up with the expectations of tech-savvy students—and reap the financial benefits of enabling more seamless transactions—schools need the expertise of enablers who can help ensure they more securely deliver automated processes, streamlined operations, reduced transaction fees, and enhanced cash flow. 

  

  

2. Automated and integrated dining operations

Dining services—a major source of revenue for colleges and universities—provide a huge opportunity to reduce costs. A 2023 study found that nearly half of college decision-makers plan to automate payments for dining operations.3 Their intent is to create more secure and consistent revenue streams while providing frictionless foodservice and expanded student dining options.

Additionally, automating services and collaborating with off-campus businesses for streamlined payments can add significant value to the overall student experience and university operations. Schools may find these initiatives support additional revenue streams in the form of transaction fees from food delivery partnerships, licensed self-service kiosks, off-campus dining venues, and on-campus franchises.

  

3. Streamlined transactions that help reduce costs

The college-age population (those in their late teens and early 20s) is expected to decline significantly in the United States after 2025.3 In anticipation, higher education institutions are bracing for this impending demographic shift. Combined with rising tuition costs, this abrupt reduction in prospective students could reduce enrollment numbers considerably, impacting the revenue stream universities rely upon.

One strategy some schools are exploring is the leveraging of digital payment enablers that disrupt the traditional payments value chain by reducing the number of fee collectors.4 The move could help lower costs for payment processing, with potential savings that could help offset the cost of fees that are currently passed on to students, reducing the financial burden felt by students and their families.

  

  

 For example, Texas A&M University’s choice to implement an entirely cashless system has helped ensure business continuity in the face of many challenges that are now impacting institutions of higher education, such as fluctuations in international student enrollment, education affordability, supply chain disruptions, and staffing shortages. In the first year that the university started eliminating cash payments, the school went from receiving $1.4 million in cash to just over $2,000. Soon after, that number reached zero. The change proved strategically advantageous as the school has also reported a reduction in payment errors and overall liability.4

 What’s more, in a time of rising tuition costs, reducing fees can make enrollment more accessible and appealing to prospective students, including international students.

 Another compelling strategy to fill the gap created by the demographic shift is international recruitment. In 2023, international student enrollment exceeded 1 million, surpassing pre-pandemic levels and creating an annual impact to the U.S. economy of $38 billion and 335,000 jobs.5

 


4. Heightened cybersecurity

 Security is certainly top-of-mind as universities strive to offer more digitally integrated experiences for their students, particularly when it comes to payments. Two-thirds of top higher education decision-makers have identified network security threats as a top priority along with physical threats.6

 The vulnerability to cyberattacks has led many institutions to choose security providers with the highest protection metrics, and many schools are updating their access control systems to improve the monitoring of student IDs and credentials across campus.

 By prioritizing top-tier security solutions, colleges and universities can protect their digital infrastructure and maintain trust in their connected campus environments. They will increasingly need the help of enablers to effectively monitor activity and provide rapid alerts through advanced technology to ensure the safety and security of campus networks.

  

Enablers help make the connected campus more secure and streamlined

 Historically, the landscape of higher education has evolved to meet students' changing needs and preferences, responding to generational shifts and global events. Now, as universities strive to balance new expectations with cost-saving opportunities, they will benefit from working with payments enablers who can help provide forward-thinking digital payment solutions that ultimately create more secure and connected campus environments. With dedicated representatives who have expertise in higher education, Discover® Global Network offers products and tools to support developers and other digital enablers in their work helping schools make the transition to a cashless environment. Visit insights.discoverglobalnetwork.com or contact your Discover representative to learn more.

  

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  1. PYMNTS (2023, August 31). Tech Shifts Student Loan Conversation From Loans to Installment Payments. PYMNTS. Accessed 27 June, 2024 from www.pymnts.com
  2. TouchNet. (2023). 2023 Student Financial Experience Report. Accessed 27 June, 2024 from www.touchnet.com 
  3. The CBORD Group, Inc. (2023, July 26). Study: Higher Education Leaders Exploring New Dining Revenue Streams in Preparation for a Coming Demographic Cliff. GlobalNewswire. Accessed 27 June, 2024 from www.globenewswire.com
  4. Flywire. Digital transformation: What higher education institutions in the U.S. can learn from Texas A&M University’s journey to cashless payments. Accessed 27 June, 2024 from www.flywire.com
  5.  Open Doors (2023, November 13). Report on International Educational Exchange. opendoorsdata.org
  6.  The CBORD Group, Inc. (2023, August 3). Study: Higher Education Leaders See Security as Top Priority in Effort to Create a Connected Campus. Yahoo Finance. Accessed 27 June, 2024 from finance.yahoo.com

The information provided herein is sponsored by Discover® Global Network. It is intended for informational purposes, and is not intended as a substitute for professional advice.