Online Payment: The Benefits For Educational Institutes In India

By Author: sifip
Total Articles: 686
Comment this article

Since the introduction of digital transactions in 1996, India's online fee payment industry has grown rapidly. Net banking enabled interbank payments, and following demonetization, people began to pay online rather than in cash.

In comparison to other industries, the education sector has been slow to adopt an online fee payment model for various types of Indian schools, colleges, and educational institutes. The education sector in India has undergone a massive transformation as a result of digitalization, from teaching and exams to fee management and administration.

What makes online fee payments so popular in India?
A large number of higher education institutions make India's education sector one of the most prominent in the world. As of FY20, India had 42,343 colleges. With 1055 universities as of July 27, 2022, India's education sector is expected to be worth US$ 225 billion by FY25.
The Indian education technology (EdTech) market is expected to reach US$ 30 billion over the next decade, driven primarily by the use of next-generation technology and high-quality education.
According to the government ...
... of India, the education budget will cross Rs 1 lakh crore for the first time in fiscal 2022-23, implying a public investment of 6% of GDP in the sector by 2022-23. As part of its commitment to meeting 21st-century demands, the government is focusing on improving education quality, streamlining fee collection, and improving teacher training.
Education is a critical sector as the Indian economy transitions to a digital economy. Students in schools, colleges, coaching classes, and universities across the country have been learning more and more with the help of digital technologies, allowing them to improve their learning outcomes, boost their learning outcomes, and modernise their education delivery.

1. Streamlines the administration process –
Using cash and checks to collect fees increases administrative burdens. Furthermore, parents and guardians would have to enter data and deposit funds into banks by hand, so an online payment gateway is the best solution to automate all of the above.

2. Recordkeeping is Simple —
Fees can be incorrectly collected as a result of human intervention, and records cannot be kept in their entirety. However, digital solutions have simplified and even surpassed the process. Every transaction is accompanied by a meticulously kept record that can be used as solid evidence if something goes wrong.

3. Fee Payment is secure –
Online fee collection has proven to be more secure than traditional methods of paying school, coaching, tuition, sports academy, and university fees. The online fee collection system is only accessible to those with security credentials.

4. Paying on time and immediately –
Using the best online fee payment collection software for colleges and schools will provide you with the best results in the shortest amount of time; all you need to do is use the best online payment gateway system to make and receive payments quickly and securely.

5. Multiple payment method other than a Challan –
A challan is one of the most common forms of fee collection used by institutes. Typically, each student is given a unique challan. A challan is presented to the bank with a Demand Draft or Check payment.

Merchants can use virtual payment collection solutions to replicate this time-honored payment collection process and manage payment collection and reconciliation digitally, providing students with their own unique virtual account number. Funds can also be transferred to the virtual account number using net banking.

Payments can be easily mapped to students using virtual account numbers, automating what would otherwise be a manual reconciliation process. A merchant can even provide each student with a unique virtual UPI ID by using UPI-based apps such as Gpay, BHIM, Phonepe, Paytm, WhatsApp, InstaCollect, and AmazonPay.

6. Providing reconciliation services –
To shorten the working capital cycle, many customization options are presented on the reconciliation page to meet the Institute's requirements. Settlement occurs in T+0, T+1, or T+2 days on average, resulting in a significant reduction in working capital requirements.

7. Subscription Model Options —
When a fee is collected on a regular basis (monthly, quarterly, or semi-annually), the merchant can give the payer the option of pre-authorizing the payment, either through a standing instruction on the card or via e-mandate using a credit or debit card.

Because of the subscription payment model, institutes, colleges, or schools can collect fees on time without the need for manual intervention, and payers can avoid the hassle of making multiple payments over time. It is ideal for edtech and MOOCs that offer courses over time.

8. Opting for Best Payment Gateway Platform –
Parents can pay using an online fee collection system from any location, at any time, and with a variety of wallets. This contributes to the convenience and simplicity of safe transactions throughout the academic year.

With an online fee management system, schools, colleges, and universities can now manage all of their tasks more easily and professionally.
Payment gateway settlement cycles should be considered in all cases where obligations (such as vendor payments, salary disbursements, and utility payments) are met.

9. Getting notified immediately –
Online fee payment systems can assist parents in staying up to date on new activities and fees. You can send fee deadline alerts to parents and remind them when their fees are due. As a result, penalties will be reduced and money saved.

10. Accounting Integration with Tally –
Transactions and student information will be automatically synced in the case of tally integration as students pay their fees to colleges, universities, or institutions.

11. Cloud Based ERP System –
Development time is drastically reduced with cloud-based ERP, as are infrastructure costs and operating expenses. The ability to increase the number of staff and students is one of the benefits, as is the ease with which fees can be upgraded.

In India, educational institutions are also concerned about data privacy and security. Ensure that roles-based rights are clearly defined in the ERP provider to reduce the possibility of data fraud or misuse.

Conclusion:
Schools, colleges, coaching centres, tuition classes, and universities in India are transforming into digital futures by converting digital payments and accepting instant payments. Schools, colleges, and universities are moving away from manual processes when taking accounts receivable for day-to-day expenses on individual students as technology evolves.

Given the foregoing, it is clear why you should automate the fee collection process and start collecting fees online with ease.