Prediction #1 - Less Corporate Players

The campus market is becoming less stable. Three of the top five leading campus card access system companies have been acquired by large firms or venture capitalists within the past 3 years. Notwithstanding, it is highly probable that at least one firm may divest itself of its subsidiary if this entity is viewed as a distraction to its core business by corporate management.

Prediction #2 - Fewer Private Companies

In the shadow of campus card company takeovers, it is not inconceivable that at least one of the remaining firms might be sold in the future as retirement begins to loom on the horizon of owners. Wall Street reminds us on a daily basis that everything is for sale, and every stockholder has their price.

Prediction #3 - Internet Hoopla

With the increased fascination which the internet attracts, more campuses will pressure campus card system vendors to utilize the internet for all communications (card readers, debit card payments). However, with this brave new world still unregulated and basically unsecured, vendors will resist moving card transactions (financial) and their company credibility to this new communications pipeline.

Prediction #4 - More Financial Institution Partnerships

Many campuses will join the tidal wave to link their campus card to a financial institution. Although many dream of substantial revenues, few will realize such fortunes. Long-term effects may also include future closure of campus retail operations, as well as alienation of established financial partnerships.

Prediction #5 - Less Financial Institution Partnerships

Just when campuses are eager to establish financial partnerships and reap new revenues, that same industry is in the midst of increasing turmoil due to national takeovers and downsizing. Few campus contracts will be renewed by financial institutions due to the lack of anticipated revenue and low participation by students with established banking relationships.

Prediction #6 - Smart Card Restraint

The hype regarding smart cards by marketing departments will continue but participation by the general public will be slow until the industry provides multiple applications for "chip" cards (often erroneously marketed as "smart" cards). The continued lack of cooperation among industry players in North America, no industry standard operating system, and single applications (i.e. meal plans, vending), still leaves suppliers with expensive "proprietary" cards and systems.

Prediction #7 - Video Image Cards

Campuses will rapidly replace old (pouch) card production systems with trendy video image technology systems. Although these systems are expensive and utilize less durable PVC card stock (than polyester), the high-tech appearance and flexibility of this new process will drive institutions to purchase these systems.

Prediction #8 - Management Tool Focus

Instead of viewing their "All-Campus Card" as strictly a revenue source, institutions will refocus on delivery of services. They will view their campus card as a "management tool" and utilize it to (1) deliver more services, (2) streamline campus operations, (3) increase convenience, and (4) provide additional revenue (where applicable).

Prediction #9 - Beyond Food Service

In that less than 50% of campuses utilize their "All-Campus Card" beyond food service, bookstore, and library applications, campuses will focus on new verification, financial, and security applications. These will include vending (food/beverage/snack, copiers, laundry, amusements, dispensers, parking, telephones), student voting, marketing surveys, legal age, information kiosks, class schedule printing, computer labs access, C-store purchases, financial aid distributions, employee expense payments, ticket purchases, concessions, campus post office services, residence hall door access, alarm monitoring, automatic locking/unlocking of office and classroom doors, stadium gate access, storage room access, and at off-campus merchant locations.

Prediction #10 - Cashless Vending

Cashless or "card only" vending will accelerate throughout campuses in order to reduce cash handling expenses and potential vandalism of monies in machines. These "closed" environments are ideally setup for conversion of laundry machines and food/beverage/snack machines in residence halls, offices, and classroom areas. If properly marketed and visibly located, significant revenue increases to institutions should follow.

Excerpt from On-Campus Hospitality (March 2000).

Consultant Background
About The Author (2007-2008)
What's Hot and What's Not (2006)
Campus Card Forecast (2007)
Campus Card Forecast (2002)
Campus Card Forecast (2000)
"Campus Cards Go Back to the Future"