A new report has revealed a seismic shift in payment preferences among Gen Z students, with nearly 40% favouring digital wallets, while a third say they rarely carry cash.
As the education sector grapples with outdated payment systems, colleges risk alienating students and missing out on revenue unless they adapt to the demands for increased choice and flexibility from the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.
As part of its recent education sector-focused report, payments specialist Access PaySuite, part of the Access Group, surveyed 500 Gen Z consumers (aged 16 - 24) across the UK.
Key findings highlight that 39% of respondents prefer digital wallets, outpacing debit cards (29%) and cash (10%). Meanwhile, over 30% rarely or never carry cash, with 10% having fully transitioned to digital wallets, leaving physical cards and cash behind.
Barriers to digital payment adoption persists, with 32% of respondents reporting issues using their preferred payment methods, highlighting a critical gap in implementation.
Lewis Wilks, a 23-year-old from Nottingham, shared his frustration. He said: “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.”
With research from Ofcom also finding that 90% of children now have a mobile phone by the time they’re 11, students are accustomed to use 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 As such, colleges face late payments, cash flow issues, and missed revenue opportunities due to outdated systems.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, said:
“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. 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 Failing to deliver on these expectations because of outdated systems risks alienating students, creating unnecessary barriers, and even impacting the financial health of institutions themselves.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.”
For more information, read the full report.