Blind Spot #1: The Abandonment Gap
Every semester, students begin the process of making payments only to stop before completing the transaction. It’s an invisible leak in the revenue pipeline—and most institutions don’t even know it’s happening.
The Scope of the Problem
Transact + CBORD research found that 73% of higher education institutions don’t track payment abandonment rates. Only 1 in 10 track abandonment across all payment types, leaving the majority blind to a critical source of lost revenue and missed student signals.
While institutions can often see which payment methods students prefer (61%) or when payments typically occur (59%), only 7% can see where students drop out of the process. That gap makes it nearly impossible to identify friction points, whether due to confusing user interfaces, technical errors, or financial hardship.
Why It Matters
Abandonment is more than a technical problem—it’s a visibility issue. Institutions that can’t track it:
- Lose revenue they may not even realize is slipping away
- Miss early warning signs of financial distress among students
- Lack the ability to intervene with reminders, support options, or alternative payment methods
The Hidden Cost
For a midsized institution processing $12 million annually in student payments, even a 5% abandonment rate that goes unnoticed could represent $600,000 in at-risk revenue.
What Leaders Are Saying
When asked to rank the most valuable payment capabilities, institutions consistently highlighted:
- Automated reconciliation processes
- Analytics connecting payment behavior to student outcomes
- Unified payment platforms
73%
of institutions don’t track abandonment.
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