Learn about this niche and its needs for a payment provider that understands its needs.
If you’re an ISV or ISO agent looking for opportunities to grow your business, you can find opportunities offering childcare payment solutions. Grand View Research reports that the U.S. market, which includes early education and daycare, was valued at $60.4 billion in 2022 and will grow at a 4.18% CAGR from 2023 to 2030. More parents returning to offices after working from home and access to government funding are driving the market.
However, sales partners will quickly find that it’s a unique space. Your clients must prioritize children’s and families’ experiences and enhance them with patience, empathy, and love. But they also need an effective way to manage payments and cash flow. Solutions providers that can make childcare payments as convenient and frictionless as possible while giving their clients easy management capabilities will succeed in this space. And it starts by choosing the right payment solution to equip your clients with the features they need.
Childcare payment solution features.
Busy parents want payment choice, both to use the type of payment they prefer but also to choose how they make it. Your clients will build stronger relationships with the families they serve with a payments solution that gives them a range of options.
- Card-present payments. As in all other transactions, early ed and daycare payments with cash are decreasing. Families who pay for all or part of childcare on their own and in person are likely to use a credit or debit card. Keep in mind, though, that childcare center staff members have busy schedules, and kids’ safety and well-being are most important. So, the solution you provide has to be easy to use, fast, and accurate — and needs to take up minimal space in a small office or sign-in area. A mobile device with a card reader that can accept contactless payments or a virtual terminal solution may be the best option for your clients.
- Online payments. With half of consumers paying bills online, many families would also prefer to make childcare payments that way. You can provide your clients with payment portals where parents can log in securely to make payments and check their payment history. You can also offer your clients an electronic invoicing solution that allows them to send invoices and receive payments online to streamline their accounts receivable processes, saving time in the office so staff can devote more time to children.
- ACH payments. Some families may prefer to make payments directly from their bank accounts rather than with a payment card. Enabling your clients to accept ACH payments will allow them to do it without creating the burden for your clients of accepting checks.
- Recurring payments. Some of your clients may give families the option to pay monthly or on another schedule, even if the childcare or early education center requires tuition for the year. Enable your clients to set up recurring payments for these families, which eliminates late charges and creates a predictable cash flow for the business.
Protecting families and your clients’ businesses.
In addition to improving childcare payment experiences and operational efficiency, the solutions and services you provide can also help protect your clients’ businesses. Managing cash and checks securely takes time that your clients may not have, creating risks. Finances Online reports that 15% of employee theft involves taking cash on hand, and 10% is related to check tampering.
Digital payments reduce the risks of losses, particularly if your clients choose payment solutions that never expose payment data to staff.
What sales partners need to know.
No two childcare operations are the same, so your clients will need your skill and expertise to tailor solutions to their specific needs. For example, your clients may benefit from employee scheduling, payroll, inventory management, or other capabilities that can help them run their businesses more efficiently.
North American Bancard sales partners have access to the solutions, services, and support necessary to meet those needs. Contact us to learn how to create childcare payment solutions that will help you grow your business.
