New Research Reveals Higher Education's Digital Transformation Progress Amid Budget Pressures and Enrollment Challenges

The Higher Ed Innovation Index 2025 Study Shows 49% of Institutions Accelerating Tech Investments, While Payment Method Fragmentation Creates Operational Headaches

SCOTTSDALE, Ariz.--(BUSINESS WIRE)-- Nearly every U.S. college is leaning on technology to manage budget pressures, but new research shows the path forward is uneven. The Higher Ed Innovation Index 2025, conducted by Transact + CBORD, finds 49% of campuses are accelerating tech investments, even as 44% cite implementation as their biggest challenge. While 99% of schools report using technology to cut costs and the majority reporting benefits from AI initiatives, many say payment modernization is a work in progress.

Higher Ed Innovation Index 2025

The findings paint a nuanced picture of higher ed’s digital transformation. Implementation tops the list of challenges, cited by 44% of leaders, followed by infrastructure and facilities improvements (40%) and keeping up with digital transformation (34%). Despite a near-universal commitment to leveraging technology to manage budget pressures, many institutions are still struggling to translate technology investments into measurable gains.

"Higher education leaders are making bold moves toward digital transformation, but the journey is far from simple," said Laura Newell-McLaughlin, chief commercial officer at Transact + CBORD. "The data reveals that while colleges and universities recognize the critical need for modernization, many are being held back by operational silos that prevent end-to-end efficiency."

Here are some of the key findings from the study that highlight both progress and emerging challenges:

AI Adoption Gains Traction

Artificial intelligence is delivering measurable returns on campus:

• 66% of schools report that AI has helped reduce staff burnout
• 63% of leaders say AI is delivering cost savings today
• 84% agree they can access the data needed for critical decisions
• 74% say they have the analytics to intervene when students are at financial risk

Student Payment Trends Shift, Creating New Challenges

The research uncovers a shift in student payment preferences that's reshaping campus financial operations:

• 96% of schools report increased student preference for ACH payments, 70% for direct bank transfers, alongside growth in digital wallets (62%)
• Digital wallets and pay-by-bank overtake checks for tuition payments
• Students are piecing together tuition with 67% of schools reporting a rise in mixed payment methods (using a credit card for part of a payment and cash for the rest, for example), and 49% seeing increased mixed funding sources (e.g., scholarships, loans, out-of-pocket payments)

However, this evolution comes with complications. Payment method fragmentation is creating back-end operational challenges, with 44% of institutions reporting increased costs associated with managing multiple payment platforms. Additionally, 52% report delays in receiving funds, 40% note increased administrative workload, and 37% cite more frequent errors and discrepancies.

Colleges Adapt to Enrollment and Affordability Challenges

The study highlights how institutions are adapting to enrollment pressures, with 29% of campus leaders saying cost pressures are limiting enrollment recovery. In response, institutions are expanding support:

• 40% of colleges report tuition gaps have widened in the last 12 months
• 51% are increasing scholarship aid packages
• 76% report students increasingly turn to payment plans as tuition gaps widen
• Sponsorship surge: Schools see growth in employer (63%) or third-party (27%) tuition payments

Security Readiness Strong, But Fraud Concerns Persist

Institutions demonstrate confidence in their cybersecurity preparedness, with 71% saying their school is prepared for a major cyber incident. However, the research reveals emerging threats:

• Ghost students are no myth: 35% of campus leaders say fraudulent enrollments are rising, while another 37% say they are declining, showing a mixed trend across campuses
• 28% of leaders say physical and digital security still operate in silos on their campus
• Half of institutions (50%) are monitoring transactions in real-time to combat fraud
• 71% of campus leaders say outdated security technology puts student safety at risk

Looking Ahead

The research points to a sector in transition. While AI implementation is advancing rapidly, institutions continue to grapple with fragmented systems and competing priorities. Payment modernization, in particular, reflects a broader challenge: student preferences are evolving faster than back-end systems can adapt, creating operational friction even as schools work to improve the student experience.

About the Research

The Higher Ed Innovation Index 2025 was administered online by Hanover Research in July 2025, surveying 270 qualified respondents that included senior executives (VP level and above) from 2-year and 4-year institutions across the United States, all with decision-making authority over technology, digital strategy, or institutional transformation initiatives.

About Transact Campus

Transact Campus, a business unit of Roper Technologies (Nasdaq: ROP), is a leader in innovative payment, campus ID, and commerce solutions for a connected campus. Transact's highly configurable, mobile-centric campus technology ecosystem simplifies the user experience across the full spectrum of campus life. Transact's offerings include integrated solutions for tuition and other student expense payments, multi-purpose campus IDs, and campus commerce. For more information, visit www.transactcampus.com.

About CBORD

The CBORD Group, Inc. (CBORD), a business unit of Roper Technologies (Nasdaq: ROP), is a leading provider of food and nutrition service management software, integrated security solutions, campus card and cashless systems, and commerce platforms for healthcare, senior living, higher education, and business campuses. With over 10,000 organizations using CBORD solutions globally, CBORD is committed to delivering innovative and comprehensive technology solutions that enhance the daily lives of patients, residents, students, staff, and administrators.

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Media Contact

The Fletcher Group for Transact + CBORD

Katie Boyless

katie@fletchergroupllc.com

404-791-8245

Source: Transact Campus