Gen Z is paying differently—Are UK colleges ready to catch up?

By Gloria Methri

As digital-savvy students become the norm, further education (FE) colleges in the UK face a critical challenge: outdated and fragmented payment systems that fail to meet expectations. According to a new study by Access PaySuite, 75% of 16–24-year-olds now prefer digital payment methods—yet many colleges remain stuck with cash-heavy, manual systems.

Generation Z Wants Convenience, Not Complexity

The research shows Gen Z students value convenience, flexibility, and digital-first experiences—from enrolment to everyday transactions like paying for meals or course materials. The gap between what students expect and what colleges deliver is growing—impacting student satisfaction and retention. Without a shift towards digital infrastructure, FE institutions risk appearing out of step with modern learners.

A decade of sustained financial pressure has made the need for cost-effective, streamlined operations even more urgent. Since 2010, colleges have suffered significant funding cuts, leaving many in precarious positions. A 2020 report by the Public Accounts Committee found that nearly one in three FE colleges was operating at a deficit.

With limited resources and rising expectations, colleges must now do more with less, making digital transformation a financial imperative rather than a future ambition.

Disjointed Systems Drain Resources

One of the key issues facing FE institutions is the use of multiple, siloed payment platforms across departments. From the finance office to the gym or cafeteria, disconnected systems make it hard to track payments, generate real-time reports, or reconcile accounts efficiently. This increases the administrative burden on staff and the risk of errors, missed payments, and data breaches.

Modernising these systems isn’t just a digital upgrade—it’s a strategic necessity. With one in three colleges already operating at a financial deficit (according to a Public Accounts Committee report), inefficiencies in payment infrastructure only worsen the problem.

Integrated, cloud-based payment platforms offer a solution. They reduce administrative friction, unify reporting, and enhance the student experience—all while ensuring compliance with PCI DSS security standards.

To meet rising expectations and ensure long-term sustainability, FE colleges must adopt integrated payment systems that cater to diverse student needs. This means offering multiple payment channels—from online portals to mobile apps and contactless options—under a single, centralised platform.

Such solutions streamline operations and dramatically reduce the administrative load. They also adhere to PCI DSS compliance standards, improving data security and building trust among students and parents alike.

The UK’s digital payment volume is projected to grow by 41% in the next four years. Students are already using mobile wallets, UPI, and online portals for everyday payments and expect the same ease at their educational institutions. Adopting modern payment solutions aligns with student behaviour and supports colleges in creating resilient, future-ready operations.