"It's already the limit----
Have you ever thought so? At the end of the month, the monthly fee bag piled up on the desk. Cash calculation to check many times to make sure there are no mistakes in counting. Reminder email to those who have not collected it. The name of the transfer is different from the student's name, so I stared at the passbook to see who paid it.

"I really want to spend more time teaching students and creating curriculum......"

The dilemma may be too great a sacrifice to be dismissed as "just office work".

In fact, according to the "Fact-finding Survey on Childcare and Educational Facilities" (*) conducted by GMO Enpay, Inc., which provides DX support for collection operations, the estimated time for collection work was "an average of 2.9 hours per month" that the site responded to in a questionnaire, but the actual on-site survey showed that it was more than 10 times that amount of "average 30 hours per month", indicating that it took more man-hours than expected.

The "operations associated with collection" such as creating and aggregating invoice, urging non-payers, and depositing money into banks are violently taking away valuable time in the field behind the scenes. Despite this, many schools still stick to cash collection and Bank transfer because they are "a waste of fees".

But is cash or transfer really the best?

In this article, we'll quantify how much of the "invisible cost" is being incurred in your monthly fee bag or Bank transfer, and show you in tangible numbers how much impact the move to online payment will have on your school management. By the time you finish reading, you should be able to organize the materials for considering introducing it.

*Data source: GMO Enpay, Inc. "Fact-finding Survey on Money Collection Operations in Childcare and Educational Facilities (2022)"

Why is "monthly fee bag" required for school management now?

Cash management risks are completely unavoidable

Collecting money in a monthly payment bag carries structural risks.

・Risk of loss or theft: Loss while students carry it, unknown location during storage, etc.

・Counting errors: Mistakes can inevitably occur when counting cash manually

・Misunderstanding with parents: There is a possibility of misunderstandings such as "in/not received"

Another major challenge is that on-site time is easily devoted to tasks such as confirmation, communication, and recording associated with collecting funds. Originally, it is difficult to secure time to support the growth of students, which tends to be an operational problem.

Bank transfer It is easy to leave "confirmation work"

Some people may think, "Then why not make it Bank transfer?"

However, in Bank transfer, there are a certain number of cases where the transfer name and the student's name do not match, and the reconciliation process tends to be a burden.

• Transfer with mother's maiden name
• Transfer in the name of your father's company
• Transfer in the name of grandparents

As a result, manual work such as contacting parents for confirmation and taking notes in the ledger may remain.
It is easy to overlook the fact that there are disadvantages on both sides, such as the transfer fee being borne by the parent and the reconciliation work being borne by the school.

What are the "invisible annual costs" that can be incurred with a monthly payment bag and Bank transfer?

"Do I have to pay a fee to implement an online payment?"

Please enter the current status of your school in the "Monthly Fee Collection DX Labor Cost Simulator" below. Just by moving the "number of students" and "non-payment rate", you can see at a glance how much invisible labor costs are required for the collection work.

*This is only a simple estimate and does not guarantee the amount of reduction.

Why can't "payment only" not work? Explaining the back of the simulator

You may have been surprised when you saw the results of the simulator and wondered, "How expensive it is?"

Behind this computational logic is the "real administrative burden" of the site.

Here, as an example, let's break down the monthly collection work using a school with 100 students, a non-payment rate of 5% (5 per month), and an hourly wage of 1,500 yen in charge (work time is approximate).

Annual labor cost conversion (approximate):
Approximately 43 hours × 1,500 yen × 12 months = approximately 770,000 yen/year

In fact, the cost equivalent to 770,000 yen per year has disappeared only to the administrative work of "collecting money".

"Introduction of payment only" or "introduction of collection tools"? The difference is "whether or not we have our own system"

If you select "payment only" in the simulator graph, you may have noticed that the cost drops to about 320,000 yen (less than half of the current level). Monthly fee bags will be abolished, and Bank transfer, credit cards, and Pay payment (QR code payment will be available. PayPay, etc.), etc., the time required for "(1) bag preparation and distribution" and "(2) cash collection and confirmation" will be completely zero. This alone is a dramatic improvement.

However, there is something to be aware of. The fact is that with the simple introduction of payment method,"(3) Clearing and management book entry" and "(4) reminding non-payers" to check "who paid" with passbooks and data and confirm if there are any discrepancies in names will remain manual. (This clearing and reminder work costs about 320,000 yen per year.)

So how can we reduce this remaining office work? There are two approaches to the school's situation:

Approach A: If you do not have a membership management system → use a "cashless collection business tool" such as enpay by GMO (enpay).
Since billing, payment, clearing, and reminding can be operated in an integrated manner, it can be expected to reduce office man-hours.
In the published case, a case in which the man-hours of collection-related work were reduced by about 90% or more*.
*The effect of the introduction varies depending on the size, operation, and billing form of the school. In the public case study of GMO Enpay, Inc., a case in which the number of man-hours related to collection was reduced by about 90% or more (e.g., 16.5 hours → 1 hour per month).
*Source: GMO Enpay, Inc. Case Study "16.5 hours → 1 hour of work hours!

Approach B: If you have a membership management system in your company (such as a large-scale school), → use "PG Multi-Payment Service" and incorporate only payment.
If you already have your own membership app or management system, we recommend that you integrate the payment API with it and design it to automate clearing within your existing system. Rather than switching to a packaged collection app, it is possible to operate flexibly and highly scalably.

Advantages and disadvantages of payment method for schools

Even if you say online payment, you have multiple options. Understand the characteristics of each and choose the right method for your school.

(1) Bank transfer: Limitations of the old model

• Advantage: No installation cost is required if the system is not used. Parents are also familiar with it.
• Cons:
  ・Name difference confirmation hell: There may be many cases where the transfer holder and the student's name do not match every month. If the transfer is made in the child's name, if the transfer is made in the name of the parent, company name, etc., you will not know whose payment is made, and you will end up staring at the passbook and Excel and calling the parent to confirm.
  ・Transfer fees are borne by parents: If you exceed the free tier such as online bank, the monthly transfer fee will be borne by the parent and may be received as a "hidden price increase".

(2) Credit card payment: Parental satisfaction and high

• Pros:
  ・Parents' point return: Points are accumulated according to the return rate of the credit card company used, so parents have a sense of value like a tuition discount.
  ・Significant reduction in the risk of non-collection: Since it can be automatically payment every month, the number of uncollected payments due to forgotten payments is drastically reduced.
• Cons: payment Fees (a few percent) are borne by the school. Some parents may not have (or don't want to) use a credit card.

(3) Account transfer (Automatic Debit): Stability Emphasis

• Advantages: Compared to credit cards, etc., payment fees are often relatively low, making it easier to reduce the cost burden on the school side. In addition, once parents register an account, they can automatically withdraw money every month, reducing the risk of non-collection.
• Cons:
  ・Hurdles for initial registration: In many cases, it is necessary to submit a written Account transfer request form or have a bank seal stamped, which is a lot of time and effort for parents (administrative troubles such as rejection due to different seals tend to occur).
  ・Weakness to flexible billing: It is difficult to respond to irregular billing such as summer course fees and teaching material fees, where the amount fluctuates from month to month.
  ・Fee burden structure: Basically, the school side bears the fee, but there are many schools that do not like this and add it to the monthly fee as a "system usage fee", effectively making it a burden for parents. In that case, it will be a disadvantage for parents.

(4) QR・ smartphone-based payment (PayPay, etc.): Latest Trends

• Advantages: Since you can pay from the app you use on a daily basis with just one smartphone, the psychological hurdle for parents is low.
• Disadvantages: The development hurdles are high for schools to contract for each individual payment processing business and system linkage.

How to introduce payment method is the biggest key to efficiency

Credit cards, Account transfer, and Pay-based payment all have their own advantages and disadvantages. "I want to prepare a variety of payment method for parents, but it is impossible to contract and manage them individually...... You may have thought so. That's why we need a "payment processing services" (PG Multi-Payment Service, etc.) and a "cashless tool for collecting money" that can introduce these all at once.

[In the case of the "Cashless Collection Business Cashless Tool" (enpay by GMO) that reduces administrative work by about 90%.
For schools that do not have their own membership system, we recommend using the "Collection Business Cashless Tool" because the hurdles to introduction are low, even if you choose payment method.

・Covers all necessary payment method: Parents can choose their preferred method, including credit cards, Pay payment such as PayPay, and convenience store payment.
・Automation of clearing work and reminders: Since student IDs and payment are linked, there is no need to check for name differences. The system will automatically clear the payment and automatically remind those who have not paid by LINE, etc. In the case of the implementation of the cashless tool "enpay by GMO (enpay)" provided by GMO Enpay, Inc., there is a Actual that reduced the man-hours of collection operations by about 90% (16.5 hours per month → reduced to 1 hour).

[In the case of "PG Multi-Payment Service" to be integrated into your own system]
For large schools and franchises that have already built their own membership management apps and systems, you can select your preferred payment method in the GMO Payment Gateway PG Multi-Payment Service and integrate it with your existing systems. Rather than switching to a packaged tool, it allows for flexible and scalable operations.

Parents are also happy! Why going online is more likely to lead to "customer satisfaction"

The adoption of online payment has significant benefits for business owners as well as parents.

1. Convenience of paying anywhere 24 hours a day

These complaints may arise such as "I can't go to the bank during free hours", "It's troublesome to line up at an ATM", "It's a hassle to even operate a online bank", ---- such complaints may occur.

With online payment, whether you're on the move late at night or on the move, you can complete payment with just one phone. Not taking away the time of parents is easy to lead to customer satisfaction.

2. Parental psychology of wanting to accumulate points with monthly fees

"If you pay anyway, it's better to accumulate points"---- This is the natural psychology of consumers.

Monthly fee 10,000 yen ×12 months = 120,000 yen. If the credit card return rate is 1%, you can earn 1,200 yen worth of points per year. For parents, it has the same effect as a substantial monthly fee reduction.

3. A sense of security that you will not forget to pay.

Bank transfer or bringing cash, parents are also worried that they have forgotten to pay. The reduction of mental burden by making automatic payment is also an advantage that cannot be overlooked.

4. Eliminate the burden of "transfer fees"

As mentioned above, in the case of Bank transfer, parents may be responsible for the transfer fee every month.

"Monthly fee bag" is a management decision to "improve the quality of education" to increase students' smiles

It's not just money that is lost in monthly payment bags and Bank transfer. It can be said that it is the time of the management, the time of the teacher in the field, and the favorability of the parents.

As we have shown in this article, the cost of implementing an online payment can often be recovered if you reduce the "invisible labor costs." Rather, the more students there are, the more effective the introduction will be.

Which is the best option for your school?

・ "I want to reduce office work anyway" → cashless collection business cashless tools such as enpay by GMO (enpay).​
Billing, payment, and clearing are fully automated, and billing is completed on LINE. Spot billing is also flexible. It is recommended for schools with more than 30 students.

・ "I want to cooperate with core systems and cover a variety of payment method "→ GMO Payment Gateway PG Multi-Payment Service
Accept all payment method, including credit cards, CVS Payment, PayPay, and more. If you are considering large-scale school or franchise development, this is the place to be.

The important thing is to consider early implementation. Why don't you turn the inefficient time that is still happening into time to increase the smiles of your students?