Payment digitization has indeed made significant strides in various sectors, revolutionizing the way we transact and conduct business. However, when it comes to the education sector, payment digitization has been relatively slow to take off compared to other industries.
Here’s exploring 6 reasons why!
The education sector has been reliant on traditional payment systems for a long time. Schools and universities often have established procedures in place for fee collection, which may involve cash or checks. These legacy systems can be difficult to upgrade due to institutional inertia & complex bureaucratic structures.
Many educational institutions, especially smaller ones or those in developing regions, may lack the necessary resources to invest in payment digitization. Due to limited financial resources, investing in new technology, infrastructure upgrades, and staff training may be challenging, but can be implemented with external credit support.
The fee structures in education can be complicated, with various components such as tuition fees, examination fees, library fees, etc. Verticalized digital payment systems need to be implemented that can handle these diverse verticals and accommodate different payment options.
Educational institutions often rely on a limited range of payment options, such as bank transfers or checks. Integrating digital payment methods like credit cards, e-wallets, or mobile payment apps requires additional processes and resources. Robust fee payment apps can help bridge this deep gap.
The education sector can be slow to embrace new technologies and processes. There may be resistance from administrators, teachers, and staff who are accustomed to traditional payment methods and may be skeptical or resistant to adopting digital alternatives.
There may be a lack of awareness and understanding among educational institutions about the benefits and potential of payment digitization in the short & long-term. Providing adequate training and education to administrators & staff regarding digital payment systems may be necessary to drive the adoption.