Following a fundamental shift in how young adults and Gen Z students want to pay, colleges need to adapt rapidly to ensure they don’t miss out on revenue, according to a new report from payments specialist Access PaySuite.
From a survey of 500 Gen Z consumers (aged 16 to 24) across the UK, Access PaySuite found that 39 per cent of respondents favour digital wallets, while a third say they rarely carry cash.
As the education sector grapples with outdated payment systems, the payments firm says colleges risk alienating students and missing out on revenue unless they adapt to the demands for increased choice and flexibility from the digital-first generation.
With the findings showing that over a third of Gen Z students prefer digital wallets, it appears debit cards (29 er cent) may be falling to the wayside, while cash (10 per cent) is in danger of being forgotten as a go-to payment method altogether.
In fact, over 30 per cent said they rarely or never carry cash, with 10 per cent having fully transitioned to digital wallets, leaving physical cards and cash behind completely.
“I’ve practically switched to Apple Pay. It’s quicker, easier, and I don’t need to carry a wallet. If a place doesn’t support digital payments, I usually just walk away,” explained Lewis Wilks, a 23-year-old respondent from Nottingham.
However, Access PaySuite says that barriers to digital payment adoption persist, with 32 per cent of respondents reporting issues using their preferred payment methods, highlighting a critical gap in implementation.
Convenience is king
With research from Ofcom also finding that 90 per cent of children now have a mobile phone by the time they’re 11, students are accustomed to using their devices for digital payments, and expect seamless transactions. As such, colleges face late payments, cash flow issues, and missed revenue opportunities due to outdated systems.
Jon Mueller, FE relationships manager at Access PaySuite
“Gen Z has grown up in a world where convenience is king, and they expect their payment experiences to reflect the same seamless ease of their digital lives,” said Jon Mueller, FE relationships manager at Access PaySuite. “For colleges, modernising payments systems isn’t just about keeping up with trends – it’s about meeting students where they are, and creating frictionless experiences that support their independence and confidence.
“This means taking a digital-first approach to payments and, while digital wallets are a rising trend with this demographic, enabling students, and their parents, along with commercial customers to pay online whenever and however they choose. Failing to deliver on these expectations because of outdated systems risks alienating students, creating unnecessary barriers, and even impacting the financial health of institutions themselves.
“The shift towards digital payments isn’t merely a passing trend – it’s a fundamental transformation in how young people interact with the world. By adopting unified, flexible payment systems that support a range of payment options, colleges can reduce admin burdens, improve cash flow, and foster stronger relationships.
“This isn’t just about technology – it’s about preparing for a future where adaptability and student satisfaction drives institutional success.”
The post Access PaySuite: 30% of Gen Z Students Have Abandoned Cash, Leaving Colleges Needing to Adapt appeared first on The Fintech Times.
