
Seamless payments have become the norm in sectors like retail but navigating payments in
further education colleges can be a different matter. Whether it’s fees, course-related trips,
or library fines, payment experiences can be disjointed for both students and their parents
because different departments have implemented their own systems over the years.
Seamless payments have become the norm in sectors like retail but navigating payments in
further education colleges can be a different matter. Whether it’s fees, course-related trips,
or library fines, payment experiences can be disjointed for both students and their parents
because different departments have implemented their own systems over the years.
As well as falling below expectations, these disparate systems also increase workloads for
college staff. Chasing late or missed payments puts pressure on finance teams, while they
also lack a single, up-to-date source of data to identify trends and potential issues.
Positive payment experiences are critical to both the financial health of colleges and students’
learning outcomes – so what exactly do young people expect, and how could this impact
college payment strategies?
We surveyed 500 Gen Z consumers (aged 16-24) from across the UK to find out how they like
to pay, where they’ve hit any barriers and whether cash is really dying out.
Gen-Z payment trends: Survey results
- Young adults overwhelmingly want flexibility and choice
- A quarter use digital wallets for online payments at least six times per month
- More than a fifth of respondents reported being unable to use their favourite payment methods at least six times per month
- Nearly a third never or rarely carry cash or coins
How often do you find your most preferred payment method for everyday transactions unavailable?
Insight: While most of our survey respondents (59%) say they rarely or never faced any barriers to payment, over a fifth say they frequently experience problems – with 12% reporting that it happens more than 11 times a month.
While many retailers, including small independent stores and ecommerce businesses, have adapted to facilitate a broader range of payment methods, other organisations with legacy systems, such as many colleges, may be falling behind.
It’s really annoying when turned away by shops that don’t accept cards or refuse to take cash. I’ve been in situations where I can’t pay because of it and had to leave the item, or run to the nearest cashpoint. Money is money, so it shouldn’t matter how you pay. It can be really frustrating when you’re not given a choice.
Which of the following payment methods do you prefer?
Insight: While most of our survey respondents (59%) say they rarely or never faced any barriers to payment, over a fifth say they frequently experience problems – with 12% reporting that it happens more than 11 times a month.
The popularity of digital wallets is no surprise given that 98% of 16 to 24-year-olds own a smartphone, compared to 66% back in 2012. Research from Ofcom also found that 90% of children now have a mobile phone by the time they’re 11 – and during their teenage years, they’ll be using apps for entertainment, socialising and perhaps payments via prepaid cards.
Direct debit may be lower down the list – but with many young people still financially dependent on their families, colleges need to be able to offer this method especially when it comes to fees. Ultimately, it’s about offering a range of payment options for both students and their patents/guardians.
Digital wallets are the most convenient way to pay. It’s easier as you don’t have to remember your information and a lot of places accept contactless and digital wallet payments now rather than cash.
On average, how often do you use digital payment methods (e.g. PayPal, Venmo, digital wallets) for online purchases?
Insight: Just 14% of respondents use digital payment methods more than 11 times a month for online purchases, according to our research – suggesting that they may not yet be independent enough to be making regular or high-value transactions. They’re more likely to use their mobile wallet in person. Around 40% told us they do this 11 times a month or more, possibly for lower value purchases like bus tickets or snacks.
On average, how often do you carry cash and coins?
Insight: Although the UK has become increasingly cashless, most young people carry cash at least some of the time. The youngest age groups (16 and 17-year-olds) are most likely to have it with them, possibly because they’re still learning financial independence. Around 43% of 16-year-olds, and 43% of 17-year-olds, have it on them all or most of the time. This drops to 37% among 18-year-olds, and 25% for 20-year-olds.
Nearly a third (32%) never or rarely carry cash and coins with them, seemingly confident that they’ll be able to buy whatever they want via online, mobile or card payments. In fact, research from UK Finance found that even when the cost of living pushed more UK adults back to cash to help them budget, young people continued to make payments via their watch or phone, as well as online. If this option isn’t available, they’re likely to walk away so the sale is lost.
I use Apple Pay most of the time as I don’t often have cash. If I ever get given cash from relatives or a private job, it tends t o sit in my wallet for a while. I’ll only use it if something needs cash, or if I don’t want to spend money from my account.
Which of the following best describes your use of debit/credit cards and digital payment methods?
Insight: Despite the popularity of digital payments, most young people still carry or use a physical card even if it’s only as a back-up. However, our survey showed that 10% are prepared to leave the house with only a mobile wallet. And, while the proportion is relatively low, it does show the direction of travel. Respondents appear to be unfazed by issues like flat phone batteries or poor connectivity: they expect things to ‘just work’.
I kind of have completely switched to using Apple Pay. I only use my physical card if it’s required, inserting into a machine for fuel, for example, or I grab the card if I need to know the numbers to input into online ordering if they don’t support Apple Pay. I find it a lot quicker and easier and it’s also great for holding multiple bank cards, so I can pay using a different account without any faff of card hunting. It also means I don’t need to carry a wallet.
Future proofing college payments
Colleges have suffered significant funding cuts since 2010 – with total income dropping by a
third in real terms, and a decline in the number of institutions from 348 to 218 (largely due to
budget-related mergers). College teachers, generally paid less than their school counterparts,
are leaving the profession, and some courses are being cut, especially in adult education.
Good payment systems won’t solve these funding challenges but they can help colleges to
reduce late payments for fees, and uncover new revenue opportunities – for example, opening
up facilities like recording or art studios to the wider community.
Our survey highlighted the growing popularity of digital wallets, with an overwhelming
expectation among Gen-Z consumers that their preferred payment methods will be available.
While young people still carry cash and use physical cards, the circumstances in which they use
these alternatives may vary.
Importantly, it’s not only students making payments at college but their parents/guardians
as well. Particularly for higher-value transactions, like fees, they expect seamless and secure
payment systems.
The advantage of a unified college payment solution is that you can offer an array of payment
options across different departments, so students have the same positive experience no
matter where and how they choose to pay.
With seamless integrations and automation, staff can reduce admin and ensure that payments
are made promptly. A subscription-based SaaS (software-as-a-service) solution is more budgetfriendly
since payments are spread out throughout the year, and it can be scaled up across the
college in line with operational requirements.
Finally, while our survey provides a snapshot of Gen-Z payment trends, the up-to-the-minute
data you get from your own payment software can give you a broader and deeper view of
payment journeys within your college, so you can take steps to improve them.

Find out how Access PaySuite can help you streamline payments in your further education college.
Methodology
Access PaySuite commissioned Censuswide to conduct a survey of 500 from across the UK to understand their preferences and priorities when making payments online and inperson. Respondents were categorised by age group (16-24), gender and location in the UK.