By Joe Aura, aurajoe6@gmail.com
In 2024, Daystar University signaled a bold move toward digital transformation by initiating the distribution of KCB smart cards meant to automate cafeteria and transport payments. While the idea promised efficiency and modernization, the implementation remains incomplete—with several students still unaware of the cards’ status or future use.
This scenario is not unique to Daystar. Across the world, institutions aiming to digitize payment systems often encounter a range of structural and technological challenges that stall or limit their progress. These challenges cut across cybersecurity risks, evolving regulations, infrastructure gaps, and human-centered design flaws—all of which must be addressed to ensure a sustainable rollout.
One of the most significant concerns is cybersecurity and data protection. As digital systems become more integrated, they become more attractive to cybercriminals. Institutions must guard against data breaches, unauthorized transactions, and potential reputational damage. Fraud prevention mechanisms, including real-time alerts and multi-factor authentication, must be embedded into these systems from the outset.
Regulatory compliance also presents hurdles. Payment systems are governed by complex, often-changing regulations. Smaller institutions, such as private universities, may struggle with the costs and capacity needed to meet compliance standards—especially when juggling academic and administrative priorities.
A persistent barrier in such transitions is interoperability. Many digital systems start as closed loops, limiting compatibility with other platforms or banking systems. For a campus payment system to work seamlessly, it must interact with point-of-sale devices, transport platforms, and online service providers—ensuring students can use it beyond just one or two functions.
From a technology standpoint, outdated infrastructure and legacy systems can hold back progress. Many institutions operate on fragmented or outdated databases that are difficult to integrate into modern payment architectures. In some cases, even basic infrastructure—like stable Wi-Fi, updated hardware, or trained personnel—may be lacking or inconsistently available across campuses.
Customer experience is another overlooked but crucial element. Today’s students expect instant, intuitive, and secure platforms. If systems are introduced without adequate training, orientation, or user-friendly interfaces, adoption will be slow. Students unfamiliar with how or where to use their cards may opt to continue with manual processes, as seems to have happened at Daystar.
Interestingly, financial inclusion and digital literacy also play into the equation. While digital systems can empower students by making banking and access to services more inclusive, they can also marginalize those with low digital literacy or inconsistent access to mobile devices and banking networks.
Institutions must also confront the risk management dimension. Introducing new systems requires contingency plans—what happens when a system fails, a card is lost, or a transaction doesn’t go through? The lack of clear communication around such processes can erode trust and slow adoption.
All these factors combine to influence public perception. Without clear, consistent communication and trust-building, students may view digital payment systems as cumbersome or unnecessary. And in an environment where students already navigate tight academic schedules, changes need to be well-motivated and visibly useful.
That said, Daystar has demonstrated capability in implementing large-scale digital transitions before. During the COVID-19 pandemic, the university smoothly transitioned to online learning—enabling students to attend classes, submit assignments, and even defend theses from across the world. This experience underscores that with intentional planning, open communication, and responsive support systems, digital solutions can thrive.
Ultimately, the goal shouldn’t just be digitization for its own sake. For smart systems to succeed, especially in educational institutions, they must be people-centered, secure, accessible, and seamlessly integrated into the daily experience. With the right approach, Daystar and similar institutions have the potential not only to catch up—but to lead the way.