PayPal Opens Its Platforms to Tuition Payments

PayPal is introducing new ways for students to make tuition payments through its platforms, according to a Wednesday (Aug. 19) press release provided to PYMNTS.

There are integrations with three education payment platforms, including Illumia, Nelnet Campus Commerce and TouchNet, the release said. They give students and their families the option to pay tuition and fees directly with PayPal or Venmo.

“Tuition is one of the biggest payments a family will make, and it should come with the same flexibility and security that millions of people already count on PayPal and Venmo for every day,” Frank Keller, president of checkout solutions and PayPal, said in the release. “That’s why we’re proud to bring that same choice and protection into the reliable systems schools have already built.”

The integrations are live at schools around the country, including Bellarmine University, Butler University, Kansas State University and Michigan State University, according to the release. More higher education institutions are expected to join throughout the year.

This summer marks one year since PayPal and Venmo teamed with the Big Ten and Big 12 conferences for agreements that included allowing institutional revenue-share payments for student athletes directly through its platform, per the release.

“Paying for tuition with PayPal or Venmo comes with the same trust and security customers rely on for everyday purchases, including encryption and fraud monitoring,” the release said. “Students and families can pay using whichever funding instrument they prefer, including bank accounts, credit cards, and PayPal or Venmo balances.”

Many colleges and universities still rely on fragmented, analog payment systems, which create “inefficiencies that disrupt cash flow and diminish student satisfaction, factors critical to long-term institutional success,” PYMNTS reported last year.

The PYMNTS Intelligence report “Modernizing Higher Education Payments: The Case for Unified Commerce” found in 2024 that 71% of college students would pay their tuition more promptly if they had access to modern, digital payment methods. Plus, three-quarters of students said they had experienced stress from fragmented college payment experiences, with 21% citing a shortage of convenient payment options.

In other PayPal news, it was reported last week that the company is in discussions with a group that includes Stripe and Advent International, negotiating to sell itself at a price that could be higher than the one the companies floated in July.

The July proposal valued PayPal at $53 billion at a time its shares were trading at a level giving it a market value of around $40 billion.

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