College students and their families can now use PayPal or Venmo to pay tuition and fees at select universities, expanding the digital payment services into one of the largest expenses many households face, Fox Business reports.
PayPal announced on August 19 that it had integrated PayPal and Venmo with three education payment platforms: Illumia, Nelnet Campus Commerce, and TouchNet. The integrations allow students and families at participating schools to make payments through their universities’ existing online portals.
Bellarmine University, Butler University, Kansas State University, Michigan State University, and Texas Tech University are among the schools offering the payment options. PayPal said more institutions are expected to join throughout the year.The three education payment platforms collectively serve thousands of colleges and universities nationwide, potentially giving the online payment systems a significant foothold in higher education payments.
“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 at PayPal, said in announcing the integrations.
Students and families can fund eligible payments using a bank account, credit card, or PayPal or Venmo balance. PayPal said transactions include encryption and fraud monitoring.
However, students should consider potential processing fees and how their money is protected before using the services for large tuition payments.
Fees vary by
institution and payment method. Kansas State University, for example, lists a 2.95% service fee for domestic card transactions made through PayPal or Venmo and a minimum $3 service fee for transactions exceeding $20.Federal deposit insurance protections can also vary. PayPal says eligible U.S. dollar funds associated with certain PayPal and Venmo offerings are placed at participating banks and may qualify for pass-through Federal Deposit Insurance Corp. coverage, subject to conditions. PayPal itself is not a bank and is not FDIC-insured.
The tuition expansion comes about a year after PayPal and Venmo reached agreements with the Big Ten and Big 12 conferences to facilitate institutional revenue-sharing payments to college athletes.
RELATED CONTENT: After Two Decades, PayPal Returns to Nigeria