Every year, millions of student’s cross borders to pursue higher education, driven by the promise of academic opportunity, personal growth and cultural experience. According to UNESCO, the number of international students is projected to surpass 7.5 million by 2025, up from 6.3 million in 2022.
But while the world has grown increasingly connected, the systems that support these students (particularly financial ones) have not kept the same pace. From complex foreign exchange processes to opaque transfer timelines and unexpected fees, international payments remain a significant source of friction. And this is more than just a back-office inconvenience. For students, the payment process isn’t just transactional, it shapes their overall university experience by affecting their sense of ease, trust and belonging.
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International students at U.S. colleges and universities alone contributed $43.8 billion to the U.S. economy during the 2023–24 academic year and supported more than 378,000 jobs, highlighting their vital role in both education and the broader economy.
In a time when digital convenience is the norm, payment systems must evolve to reflect the global, real-time world today’s students already live in.
Outdated systems are damaging the experience
Despite universities investing heavily in international recruitment and support services, one part of the student journey remains neglected: the financial infrastructure underpinning tuition and fee payments. For international students and their families, the payment process is often slow, confusing and unreliable which is the last thing families need when sending their children abroad. Delays are common, exchange rates fluctuate without transparency and fees are difficult to predict.
For institutions, these same issues create a different kind of strain on their systems. Finance and admissions teams must manually pair incoming payments with student records and resolve any inconsistencies that come from bank or intermediary errors. These inefficiencies take up time and increase risk, particularly as universities expand into new regions with complex regulatory environments.
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By GlobalDataThere is a growing disconnect where students are living in a fast and digital-first world. They stream lectures, submit assignments and manage their lives through mobile apps. Yet, when it comes to making a payment, they’re forced to navigate systems that were built decades ago – systems that require constant manual oversight and provide limited visibility. This clash between expectation and reality undermines the student experience at the same moment institutions are striving to compete globally and demonstrate their value.
The case for a seamless global payment infrastructure
In order to meet the expectations of today’s students, and ease the burden on institutional systems, the higher education sector must consider how international payments are managed. At the core of this is the move from traditional, multi-step banking transfers to a more seamless and embedded payment infrastructure.
One of the most effective ways to reduce cost and complexity is through local-to-local settlement. By enabling funds to move within domestic banking networks at both ends of a transaction, institutions can significantly reduce foreign exchange costs, eliminate intermediary fees and speed up the time in which payments are processed. For students and their families, that means clearer costs upfront and faster confirmation that tuition has been paid, giving them that peace of mind.
Even more impactful is the ability to embed payment processes directly into existing student portals or university systems. This approach removes the need for students to leave their digital campus environment to complete payments elsewhere on other apps and platforms. Instead, tuition, accommodation and other fees can be paid in a few intuitive steps with no separate banking apps. Finance teams gain visibility and control over any incoming payments, and universities can reconcile payments faster, with fewer errors. One educational institution reported a 3% increase in revenue purely from savings on bank charges and credit card fees, a small infrastructure change with significant financial results.
Improving the operational backbone
The benefits of a frictionless payment system extend far beyond just the student experience. It extends into the operational core and fundamental way of working for an institution. Finance teams spend their valuable time reconciling received payments to the right student accounts or FX differentials and dealing with compliance in multiple jurisdictions. These manual processes are bound to be prone to errors – especially when the payments pass through different banks and intermediaries.
Integration with university systems makes automatic reconciliation and alignment with current finance and ERP platforms possible. This streamlines workflows, reduces administrative burden and prevents the need to coordinate with multiple payment partners or local banks.
At the same time, today’s students expect intuitive, digital-born experiences from all aspects of university life up to and including financial transactions. Transparent, reliable payment processes also reduce worry at a moment when students are already navigating significant personal changes.
What the future looks like for international education
With student numbers growing worldwide, universities have a clear opportunity to reconsider facilitating that journey, both financially and academically. Transferring funds abroad should not be a risk for students and it should certainly not be an arduous task. Paying for tuition ought to be as straightforward as paying for something domestically with clear prices and instant confirmation.
On the university’s end, moving away from reactive, admin processes means something more valuable: a smoother, more integrated experience for students and staff. With payments plugged into current systems and working behind the scenes quickly, accurately and compliantly – finance teams are able to assist students instead of troubleshooting payments.
This configuration is now becoming a necessity. As student mobility increases and competition between institutions heightens, having the appropriate fiscal infrastructure in place isn’t merely about being efficient, it’s about being relevant in an international education economy. That shift from reactive admin to student-focused, joined-up systems is the future of global education. When payments are frictionless, compliant and easy to manage, all parties benefit; students are better looked after, staff save time on administrative labour and institutions are able to more fully build their global footprint.
Removing friction from payments isn’t just about solving a process problem. It’s about unlocking potential and helping international students thrive from day one and giving universities the tools to meet them there.
Tom Butler is Head of Education at TransferMate
