Why PayPal and Venmo Are Expanding Into College Tuition Payments Across Major Universities

PayPal and Venmo checkout logos on a laptop screen next to university graduation cap and tuition bill

 PayPal and Venmo are now available as tuition payment options at five U.S. universities, the companies announced Wednesday. The rollout runs through integrations with three education payment platforms, and more schools are expected to join this year.

At a Glance

  • PayPal and Venmo are now accepted for tuition at five universities: Michigan State, Kansas State, Texas Tech, Bellarmine, and Butler.
  • The option works through each school's existing payment portal, via integrations with Illumia, Nelnet Campus Commerce, and TouchNet.
  • Students can pay with a linked bank account, a credit card, or PayPal and Venmo balances.
  • Fees vary by university. Kansas State lists a 2.95% domestic card fee, a 4.25% international card fee, and a $3 minimum on transactions over $20.
  • More institutions are expected to join throughout the year, PayPal said.

Main Story

PayPal announced the move on August 19 through new integrations with three education payment platforms: Illumia, a unit of Roper Technologies; Nelnet Campus Commerce; and TouchNet, a Global Payments company.

The options are live at Bellarmine University, Butler University, Kansas State University, Michigan State University, and Texas Tech University. According to PayPal, the three platforms collectively serve thousands of colleges and universities across the country, and more institutions are expected to join throughout the year.

Students pay through the school's existing payment portal and can fund the payment with a linked bank account, a credit card, or an existing PayPal or Venmo balance.

"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 the announcement.

Fees

Fees are set by each university, similar to existing card convenience fees, and they are not standardized across schools.

Kansas State University's payment page lists these fees for PayPal and Venmo:

  • Fee Type / Condition vs. Rate / Amount
    Fee Type / Condition Rate / Amount
    Domestic Card Service Fee 2.95%
    International Card Service Fee 4.25%
    Minimum Service Fee $3.00 (on transactions over $20)
    Domestic Card Service Fee
    Rate / Amount 2.95%
    International Card Service Fee
    Rate / Amount 4.25%
    Minimum Service Fee
    Rate / Amount $3.00 (on transactions > $20)

Because fees differ by institution and by funding source, students should check the amount shown in their school's payment portal before completing a transaction.

Status Table: What Is Confirmed vs. What Varies by School
Item Status
PayPal & Venmo tuition Confirmed by PayPal (Aug 19, 2026) and the five schools
Launch universities Bellarmine, Butler, Kansas State, Michigan State, Texas Tech
Funding methods Bank account, credit card, or PayPal and Venmo balances
Fees Set per university; not standardized (Kansas State: 2.95% domestic, 4.25% international, $3 minimum)
Expansion More institutions expected "throughout the year," per PayPal

Consumer Concerns

Consumer advocates cited by The Washington Post have warned that digital payment apps may provide less recourse in some situations than traditional banking or card-payment channels.

Carla Sanchez-Adams, a senior attorney at the National Consumer Law Center, cautioned that consumers should be especially careful when using payment apps for large tuition transactions, because recovery options can be limited if a payment goes to the wrong person.

PayPal said tuition payments through its apps carry the same encryption and fraud monitoring as its other transactions.

FAQ

Which universities accept PayPal and Venmo for tuition right now?
Bellarmine University, Butler University, Kansas State University, Michigan State University, and Texas Tech University, according to PayPal.

How do I pay tuition with PayPal or Venmo?
Log in to your school's existing payment portal and choose PayPal or Venmo at checkout. You can fund the payment with a linked bank account, a credit card, or your PayPal or Venmo balance.

Are there fees for paying tuition with PayPal or Venmo?
Fees depend on the university and payment processor. Kansas State, for example, lists a 2.95% domestic card service fee and a $3 minimum on transactions over $20. Students should check the amount shown before confirming the payment.

Is it safe to pay a large tuition bill this way?
PayPal says the payments carry the same encryption and fraud monitoring as its other transactions. Consumer advocates, however, suggest extra caution with large amounts, since recovery can be limited if a payment goes to the wrong person. Verify the recipient and the fee before sending.

Sources / Attribution

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