The online fee payment industry in India has rapidly grown since the advent of digital transactions in 1996. Interbank payments were made possible by net banking, and after demonetization, people began to pay online instead of using cash.
The education sector has been late to adopt online fee payment model for various types of Indian schools, colleges, and educational institutes compared to other industries. Digitalization has seen the education sector in India undergo a massive transformation from teaching and exams to fee management and administration.
What makes online fee payments so popular in India?
A large number of Institutions offering higher education make India’s education sector one of the most prominent in the world. India had 42,343 colleges as of FY20. The education sector in India is expected to be worth US$ 225 billion by FY25, with 1055 universities as of July 27, 2022.
Within the next decade, the Indian education technology (EdTech) market is forecast to reach US$ 30Billion, driven largely by the use of next-generation technology and high-quality education.
For the first time in fiscal 2022-23, the education budget will cross Rs 1lakh crore, according to the government of India, suggesting a public investment of 6% of GDP in the sector by the year 2022-23. As part of the government’s commitment to meeting 21st century demands, it is focusing on improving the quality of education, streamlining fee collection, and improving the training of teachers.
Fee payment online in India offers many benefit
As the Indian economy transitions to a digital economy, education is also a very crucial sector. Students have been learning more and more with the help of digital technologies in schools, colleges, coaching classes, and universities across the country, allowing them to improve their learning outcomes, boost their learning outcomes, and modernize their education delivery.
1. Streamlines the administration process –
Using cash and checks as a form of fee collection increases administrative burdens. Furthermore, parents and guardians would have to manually enter data, and manually deposit funds into banks, so FeesBuzz is the best solution to automate all of the above.
2. Recordkeeping is Simple —
As a result of human intervention, fees can be inaccurately collected and records cannot be kept in their entirety. However, digital solutions have simplified the process and surpassed it completely. Every transaction is accompanied by a well-maintained record, which can serve as solid evidence in case something goes wrong.
3. Fee Payment is secure –
Online fee collection has been more secure than the traditional way of paying school, coaching classes, tuition fees, sports academy, and university fees. Only those with security credentials can access the online fee collection system.
4. Paying on time and immediately –
Using the best online fee payment collection software for colleges and schools will give you the best results in the shortest time possible; all you must do is use the FeesBuzz system to make and receive payments promptly and securely.
5. Multiple payment method other than a Challan –
A challan is one of the most common ways for institutes to collect fees. Usually, each student is issued a different challan. A challan is submitted at the bank counter along with a Demand Draft or Check payment.
Merchants can replicate this age-old payment collection process and manage payment collection and reconciliation digitally with the help of virtual payment collection solutions, which provide students with their own unique virtual account number. Net banking can also be used to transfer funds to the virtual account number.
Payment received can easily be mapped to students using virtual account numbers, automating an otherwise manual reconciliation process. Using UPI-based apps such as Gpay, BHIM, Phonepe, Paytm, WhatsApp, InstaCollect, and AmazonPay, a merchant can even offer each student a unique virtual UPI ID.
6. Providing reconciliation services –
In order to reduce the working capital cycle, you get many offers of customization on the reconciliation page to meet the Institute’s needs. On an average, settlement happens in T+0, T+1, or T+2 days, which results in a significant reduction in working capital requirements.
7. Subscription Model Options —
Whenever a fee is collected periodic (monthly, quarterly, or semi-annually), the merchant can offer the payer the option of pre-authorizing the payment, either through a standing instruction on the card or through e-mandate using a credit and debit card.
As a result of subscription payment model, institutes, colleges, or school can collect fees on time without manual intervention and payers can eliminate the hassle of multiple payments over a period. It is perfect for edtech and MOOCs that provide courses over a period.
8. Opting for Best Payment Gateway Platform –
Using an online fee collection system, parents can pay from any location, any time, and with a variety of wallets too. This helps to improves the convenience and simplicity of safe transactions during the academic year.
With online fee payment, schools, colleges, and universities can now manage all their tasks more easily and professionally with an online fee management system like FeesBuzz.
In all instances where obligations (such as vendor payments, salary disbursements, and utility payments) are fulfilled, payment gateway settlement cycles should be considered.
9. Getting notified immediately –
Online fee payment systems can help parents stay informed about new activities and fees. You can send parents alerts about fee deadlines, and remind them when their fees are due. As a result, penalties will be lower and money will be saved.
10. Accounting Integration with Tally –
In the case of tally integration, transactions, and student information will be automatically synced as students pay their fees to colleges, universities, or institutions.
11. Cloud Based ERP System –
With cloud-based ERP, development time is dramatically reduced, infrastructure costs are reduced and operating expenses are slashed. Advantages include the ease with which fees can be upgraded, as well as the ability to increase the number of staff and students.
In India, the privacy and security of data is another concern for educational institutions. Ensure that roles-based rights are well defined in the ERP provider so that chances of data fraud or misuse are minimized.
In India, School, colleges, coaching centers, tuition classes, and universities are transforming into digital future by transforming digital payments and accepting instant payments. As technology evolves, schools, colleges and universities are moving away from manual processes when taking accounts receivable for day-to-day expenses on individual students.
Considering the above points, it is easy to see why you should automate the fees collection process and begin collecting fees online with ease.