In the United Arab Emirates, a novel school fee payment app is swiftly becoming a go-to solution for families seeking flexible payment options. This app, a product of the collaboration between Direct Debit System, a leader in paperless direct debit solutions for education, and fintech startup Zenda, is transforming how tuition and other educational expenses are paid. This partnership introduces a digitized and automated approach to settling school bills, marking a significant shift from traditional payment methods.
The app integrates the convenience of Zenda’s user-friendly interface with the efficiency of the Direct Debit System, offering parents the option to pay school fees immediately or at a later date. This flexibility is crucial for families experiencing financial strains, as it addresses the common issue of delayed school fee payments. Besides tuition, the app also extends to other school-related services such as transport and meals, broadening the scope of digital payment options.
Backed by the UAE Central Bank and incorporating UAEPASS, the system champions a completely paperless process. Ummair Butt, Founder and CEO of the Direct Debit System, emphasizes this collaboration with Zenda as a significant milestone in replacing the outdated practice of bulk cheque payments. He points out that combining rent and school fee cheques can account for over 50 percent of the average salary in the UAE. The monthly digital payment system, as opposed to advance paper-based cheques, offers 96 percent of monthly salaried individuals in the UAE an opportunity to better budget their expenses, stay out of debt, and protect their credit scores.
Raman Thiagarajan, Co-Founder of Zenda, shares his excitement about partnering with Direct Debit System. He highlights that their services will enable educational institutions to provide more flexibility to parents while improving their collection efficiency.
Parents in the UAE have been advocating for a move towards automation and digitization in the education sector, noting that many payments are still made in cash or by cheques. Ahsan Rathor, a parent with children at Al Salam Community School, shares his positive experience with Zenda. He appreciates the pay-later option, which aligns with his budgeting needs. Another parent, Arvind Rao, echoes this sentiment, stating that the app allows for staggered payments of school fees without the burden of high-interest rates, benefiting both parents and schools by digitizing school receivables.
This innovative app is more than just a payment tool; it’s a financial relief for families, providing a much-needed alternative to traditional payment methods. As the education sector catches up with other industries in embracing digital solutions, this app stands out as a testament to the potential of fintech in revolutionizing everyday transactions.
