Why Cashless? Why Not!

Going Cashless in Universities and Colleges

Open Loop/Closed Loop

Advantages Disadvantages

Open-loop systems

The institution isn’t responsible for card-issuing Card replacement is slow, with no interim solution

Therefore most risks pass to the card issuer Transaction fees are higher

Students can use the payment method off-campus Design flexibility is limited

Diverse usage makes it popular with students Spend goes off-campus

Cards have higher levels of security. Cards readers are more costly

Open Loop/Closed LoopAdvantages Disadvantages

Closed-loop systems

The institution remains in full control The institution bears all risk & responsibility

One card (or app) does everything Not all systems can be used off-campus (eg bus)

The institution issues cards & re-issue is very fast Visitors may need additional payment options.

A higher proportion of spend is kept on-campus

          

Lower administration costs

No issues with the ownership of data

Funds held can deliver working capital

Substantial interest can be earned on stored funds

Detailed, accurate analytics become available

Easy to reward/incentivise users

Lower risk of fraud (although not eliminated)Secondary authentication can be used when cards are

lost/stolenEffectively ring-fences funds – so they can’t be spent in

bars, nightclubs, etc.

Cost of Cash

Insurance - ££££££££££

21 man hours to handle

Adequate Security

Dirty Money430,000

£££££££££££££ £8.1M

£1 coins between 3-5%

Germs 40,000

US Bank notes contaminated – 94%

Fast and Easy Payment

Cash – 40 seconds

Chip & pin – 23 seconds

Contactless or Prox– 3 seconds

Seen within HE/FE – 20%

MasterCard estimate 30%

Business Wire claim up to 37%

Increase Spend on Campus

Student Experience

ControlSingle student interface

Provide clear visibility

Accommodate international students

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