The State of Global Tuition Payments 2025
Executive Summary
The international education payments market represents a $43.8 billion opportunity for institutions to reclaim revenue currently captured by intermediaries. With 1.1 million international students in U.S. universities alone, the margin lost to payment processors amounts to hundreds of millions annually.
Key Statistics
- $43.8B - Annual economic contribution of international students to the U.S. (NAFSA, 2023-24)
- 1.1M - International students in U.S. universities (2023-24)
- 1-3% - Typical FX spreads captured by intermediaries
- $200T+ - Global cross-border payments market size
Market Dynamics
Traditional payment intermediaries like Flywire, Western Union, and Convera capture significant value through:
- Foreign exchange spreads
- Transaction fees
- Data analytics and customer insights
- Brand relationships with students and families
The Opportunity
Institutions can reclaim this value through white-label payment rails that provide:
- Direct FX margin capture
- Reduced reconciliation costs
- Enhanced data ownership
- Improved student experience
Recommendations
Financial institutions and universities should evaluate white-label payment solutions that offer:
- Regulatory compliance - BSA/AML, OFAC, Travel Rule alignment
- Speed to market - 6-9 months vs. 18-24 months for DIY solutions
- Dual rails - SWIFT/FX and stablecoin settlement where permitted
- Institution branding - Maintain customer relationships