Richard Poynder discusses the growing trend of cashless campuses in the UK. Approximately 110 UK universities have issued smart cards, but fewer than 20 have "full" smart campus schemes where a single card supports multiple functions like access, payments, attendance tracking. While less cash is being used, no UK university is fully cashless yet. Closed loop systems keep payments on-campus while open loops use mainstream payment cards off-campus as well. Barriers to cashless adoption include integrating old systems, data ownership issues, and eliminating cash handling. The future may see payments made via NFC smartphones and biometrics instead of cards.

1. Cashless Campuses in the UK
Richard Poynder
Chairman, Smartex Limited
Operator of HESCA
16th May 2013 Higher Education Smart Card Association 1
X
Introduction
UK statistics
Smart campuses
Cashless functions
Cashless systems
Closed loops
Open loops
The future is mobile
About HESCA
Present status

2. 16th May 2013 Higher Education Smart Card Association 2
Introduction
UK statistics
Smart campuses
Cashless functions
Cashless systems
Closed loops
Open loops
The future is mobile
About HESCA
Present status
How do we rate on the numbers?
63.5 million
162
2.4 million

3. 16th May 2013 Higher Education Smart Card Association 3
Introduction
UK statistics
Smart campuses
Cashless functions
Cashless systems
Closed loops
Open loops
The future is mobile
About HESCA
Present status
About 110 UK universities have issued smart cards, but fewer than
20 have ‘full’ smart campus card schemes – where a single smart
card supports a wide range of functions.
1. General ID
2. Access control
3. Libraries
4. Catering and vending
5. Attendance monitoring
6. Sport and leisure
7. NUS
8. Car parking
9. Bus passes and payments
10.Examinee validation
11. Security guard routes
12. Visitor control
13. Student voting
14. Proof-of-age
15. Off-campus use
16. Society membership
17. Course accreditation
18. Staff time and attendance
19. Laundromat payments
UK universities do everything
VERY, VERY SLOWLY, and by
committee…

4. 16th May 2013 Higher Education Smart Card Association 4
Introduction
UK statistics
Smart campuses
Cashless functions
Cashless systems
Closed loops
Open loops
The future is mobile
About HESCA
Present status
In the UK it’s LESS CASH, not CASHLESS! No UK university is
yet fully cashless. But in the Netherlands…
So where can e-payments be used?
Catering payments Vending machine payments
Printing & photocopying payments
Library fine payments
Car parking payments
Bus transit payments
On-campus shop payments
And others

5. 16th May 2013 Higher Education Smart Card Association 5
Introduction
UK statistics
Smart campuses
Cashless functions
Cashless systems
Closed loops
Open loops
The future is mobile
About HESCA
Present status
A typical UK closed loop e-payment system: loads and
spends. The main problem is getting readers fitted and
working for all types of payment points.

6. 16th May 2013 Higher Education Smart Card Association 6
Introduction
UK statistics
Smart campuses
Cashless functions
Cashless systems
Closed loops
Open loops
The future is mobile
About HESCA
Present status
Closed loop schemes are low-value e-payment systems
where the University is (usually) the card issuer and float-
holder. Only for use on campus. Most are server-based.
ADVANTAGES DISADVANTAGES
University is in control Can’t normally use off-campus
Card re-issue is almost instant Public transport payments a problem
One card does all University is totally responsible for it
Adding it to cards increases attractiveness Visitor payments a problem
Increased revenues – eat on campus
Lower costs of cash handling and admin
No data ownership issues
University can use float to enhance cashflows
Lower transaction charges: no commission
Freedom of card exterior & chip design

7. 16th May 2013 Higher Education Smart Card Association 7
Introduction
UK statistics
Smart campuses
Cashless functions
Cashless systems
Closed loops
Open loops
The future is mobile
About HESCA
Present status
Use of a third-party issued and owned contactless-enabled payment
card, adapted to support several university functions, that is also in
general use in the high street (?). The card can support payments
on and off campus (in contact mode only?).
ADVANTAGES DISADVANTAGES
University isn’t the card issuer Long replacement cycle
Students can use it off campus Higher transaction fees
Card issuer pays for the cards? Limited design flexibility
Popular with students More expensive card readers
Most risks pass to card issuer Students ‘chased’ by card issuer?
Students more likely to carry it Availability?
No load devices to worry about?
Higher-security cards

8. 16th May 2013 Higher Education Smart Card Association 8
Introduction
UK statistics
Smart campuses
Cashless functions
Cashless systems
Closed loops
Open loops
The future is mobile
About HESCA
Present status
There are a number of reasons why UK universities are slow
to implement e-payments systems or to become cashless
campuses. These include:
CHALLENGES BARRIERS
One account or many per student? IT department
Offline or online? Creaky old legacy systems
Balance in chip or not? Lock-in by suppliers
Justify cost Several contracts may be needed
Will NFC change everything? Data ownership
How to handle visitors? Faculties can’t work together
Integrating current systems Lack of leadership/management
Value transfers and refunds Eliminating cash hurts my head!
Knowing my balance
Disputed transactions or balances

9. 16th May 2013 Higher Education Smart Card Association 9
Introduction
UK statistics
Smart campuses
Cashless functions
Cashless systems
Closed loops
Open loops
The future is mobile
About HESCA
Present status
Students will want to use their NFC-enabled smartphones instead of
cards. Will readers and systems be ready for this? Will universities
be ready for this? And what about biometrics?
And then it’s Biometrics
Biometrics and smartphones are made for each other:
Voice or fingerprint?
Goodbye PIN: hello secure verification
The game changes completely
Is your system ready for NFC, and are your readers too?
Already in use at one university for buddy tapping!
Students will demand it

10. 16th May 2013 Higher Education Smart Card Association 10
Introduction
UK statistics
Smart campuses
Cashless functions
Cashless systems
Closed loops
Open loops
The future is mobile
About HESCA
Present status
The things they say…
What
happens if
I leave it at
home?
Can I use it
on the bus?
I want it in
my
smartphone!
Can my
friend use
it?
Can my
parents send
money from
home?
I don’t like
my photo!
Can people
steal my e-
money?
I want my
money
back.
I microwaved it…
If I tap it
twice…?
I prefer
cash

11. 16th May 2013 Higher Education Smart Card Association 11
Introduction
UK statistics
Smart campuses
Cashless functions
Cashless systems
Closed loops
Open loops
The future is mobile
About HESCA
Present status
Higher Education Smart Card Association
Owned and operated by Smartex
Membership-based: over 10 years old: 50 members
Education, case studies, networking, mutual help

12. 16th May 2013 Higher Education Smart Card Association 12
The end
Richard Poynder: Chairman, Smartex Limited
www.smartex.com
www.hesca.com
+44 1440 712610