Why Canadian universities use fintech to manage international student fees

Managing international student payments has become one of the most complex financial challenges facing Canadian universities today. With international transfers expected to increase five percent per year until 2027 ¹, educational institutions are grappling with an increasingly intricate web of cross-border transactions, currency conversions, and regulatory requirements.

The scale of this challenge is significant. Currently, 195 countries each have their own payments systems, regulations, and levels of technological maturity ¹. For universities welcoming students from dozens of countries, this creates a labyrinth of payment processing requirements that traditional financial systems struggle to handle efficiently.

The growing complexity of international student payments

Canadian universities face unique challenges when processing international student fees. The Canada payments market reached 22.8 billion transactions in 2024, with expectations to reach 38.7 billion transactions by 2033, exhibiting a growth rate of 5.6% during 2025-2033 ². This explosive growth in payment volume directly impacts how educational institutions must adapt their financial infrastructure.

The traditional approach to managing these payments often involves multiple intermediaries and complex routing systems. However, modern payment networks have evolved significantly – 84 percent of global payments are now either direct payments or they have one intermediary ¹. This streamlining represents a major opportunity for universities to modernize their payment acceptance processes.

Currency conversion challenges

One of the most pressing issues universities face is managing multiple currencies efficiently. Students paying from different countries need clarity on exchange rates and fees, while universities need predictable revenue streams despite currency fluctuations. The global fintech market, valued at USD 133.96 billion in 2024 and projected to reach USD 412.65 billion in 2032 ³, has developed sophisticated solutions to address these exact challenges.

According to data analytics company LexisNexis, up to 50 percent of payments that don't complete or are delayed are due to simple data entry problems ¹. For universities, this means lost revenue, frustrated students, and administrative headaches that could be avoided with proper fintech solutions.

How modern fintech solutions transform university payment systems

The evolution of financial technology has created new possibilities for educational institutions. Real-time payments systems are expected to generate $173 billion in additional economic output by 2026 ¹, and universities are beginning to recognize the potential benefits of adopting these technologies.

Modern fintech platforms offer multi-currency accounts that allow universities to receive funds in various currencies without immediate conversion ⁴. This capability alone can save institutions significant amounts in conversion fees and provide more transparent pricing for international students.

Speed and efficiency improvements

The speed of international transfers has improved dramatically with fintech adoption. Today, 89 percent of payments that flow through the Swift network arrive at the destination bank within an hour, with half making it all the way to the beneficiary account in less than five minutes ¹. This rapid processing means universities can confirm student enrollments faster and students can secure their places without lengthy waiting periods.

High-speed international transfers are now a standard offering from modern financial service providers ⁴, enabling educational institutions to operate with the same efficiency as global businesses.

Real-world implementation: lessons from international schools

The Australian International School in Singapore, established in 1993 with 2,500 students, provides an excellent case study in payment system modernization ⁵. The school implemented a cashless payment solution that is accepted at 6 touch screen POS devices in 2 cafeterias, plus their uniform and stationary shops ⁵.

This system demonstrates how educational institutions can create comprehensive payment ecosystems. Parents can top up their accounts using Visa, MasterCard or PayPal through the school's online portal, self-service kiosks, or at the school cashier ⁵. The flexibility of payment options mirrors what universities need for international student fee collection.

Integration with existing systems

The cashless payment system at AIS is automated from end to end and synchronized with the school's Synergetic administration system ⁵. This seamless integration is crucial for universities looking to adopt fintech solutions without disrupting their existing administrative processes.

Modern fintech platforms provide automated accounts payable management and integrate with existing financial systems ⁴, making the transition to new payment technologies less disruptive for educational institutions.

The Canadian context: regulatory compliance and innovation

In Canada, the regulatory landscape for financial services continues to evolve. In April 2024, Mastercard and leading Canadian fintech VoPay entered into a strategic partnership to empower Canadians to move money quickly and securely ². This type of collaboration between traditional financial institutions and fintech companies creates new opportunities for universities to access innovative payment solutions.

The growth of e-commerce in Canada also influences how universities approach payment processing. In 2022, there were around 27 million eCommerce users in Canada, accounting for 75% of the Canadian population ². Students and their families expect the same seamless payment experiences from universities that they receive from online retailers.

Security and fraud prevention

Security remains a top priority for universities handling international payments. Innovations in payment security solutions, including fraud detection systems, tokenization, and encryption, are being fueled by the demand for secure e-commerce transactions ². These same technologies protect university payment systems from fraud while ensuring legitimate transactions process smoothly.

The implementation of advanced security measures doesn't have to come at the expense of user experience. Modern platforms offer conversion-optimized prebuilt payment forms that maintain security while providing intuitive interfaces for students and families ⁴.

How Airwallex addresses university payment challenges

Airwallex, established in Melbourne in 2015 and currently valued at over US$5.6 billion ⁶, has developed comprehensive solutions specifically designed to address the complex payment needs of organizations dealing with international transactions.

The Airwallex Global Account empowers businesses to enhance their financial operations on the international stage, serving as a modern alternative to traditional business accounts ⁷. For universities, this means the ability to open domestic and foreign currency accounts in minutes ⁷, dramatically simplifying the process of accepting international student payments.

Multi-currency capabilities

Universities using Airwallex can accept payments in multiple currencies without the complexity of managing numerous foreign bank accounts. The platform offers multi-currency accounts to receive funds, allowing institutions to hold balances in various currencies and convert them when exchange rates are favorable ⁴.

This flexibility is particularly valuable given the volatility in foreign exchange markets. Universities can minimize their exposure to currency fluctuations while providing transparent, predictable costs to international students.

Streamlined reconciliation and reporting

One of the most time-consuming aspects of managing international student payments is reconciliation. Airwallex provides expenses and reimbursement management tools that simplify this process ⁴. Universities can track payments from initiation to settlement, with clear reporting that integrates with existing financial systems.

The platform's automated accounts payable management capabilities mean that universities can process refunds, scholarships, and other outbound payments as efficiently as they collect fees ⁴.

Success stories: global organizations embracing fintech

Major organizations worldwide have already demonstrated the benefits of adopting modern payment solutions. McLaren Racing modernized their cross-border payments with Airwallex ⁷, while RYSE transformed complex cross-border finances into streamlined, cost-saving, and efficient global operations ⁷.

These success stories highlight how organizations with complex international payment needs – much like universities with global student populations – can benefit from fintech adoption. The ability to handle multiple currencies, process payments quickly, and maintain clear financial records are universal needs that modern fintech platforms address effectively.

The future of university payment systems

Looking ahead, the integration of fintech solutions in university payment systems will likely accelerate. With 90 percent of central banks globally currently working on developing Central Bank Digital Currencies ¹, the payment landscape will continue to evolve rapidly.

Universities that adopt modern fintech solutions now will be better positioned to adapt to these future changes. The global fintech market is expected to grow at a CAGR of 15.1% between 2025 and 2032 ³, indicating sustained innovation and improvement in payment technologies.

Preparing for tomorrow's students

Today's international students are digital natives who expect seamless, mobile-first payment experiences. In 2022, 78% of Canadians used the internet to conduct online banking ², and this percentage is likely even higher among the younger demographic that makes up the student population.

Universities must adapt to meet these expectations while maintaining the security and compliance standards required for financial transactions. Fintech solutions that offer no-code payment acceptance and integrations with eCommerce platforms ⁴ provide the flexibility universities need to create student-friendly payment experiences.

Implementation considerations for Canadian universities

When evaluating fintech solutions for international student payments, universities should consider several key factors. The ability to handle multiple currencies efficiently, integrate with existing systems, and provide transparent fee structures are essential requirements.

The experience of Ontario Tech University, which manages its Corporate Credit Card Program with specific protocols for digital signatures and monthly reconciliation ⁸, demonstrates the importance of having clear processes and systems in place for financial management.

Building a comprehensive payment strategy

Successful implementation of fintech solutions requires more than just selecting the right technology. Universities need to develop comprehensive payment strategies that consider the entire student journey, from application through graduation. This includes evaluating how payment systems integrate with admissions, student services, and financial aid processes.

The ability to offer multi-currency company and employee cards ⁴ can also benefit universities by simplifying expense management for international recruitment activities and conference attendance.

Conclusion: embracing the fintech transformation

The challenges Canadian universities face in managing international student fees are significant but not insurmountable. With international transfers expected to continue growing at five percent per year until 2027 ¹, the need for efficient, scalable payment solutions will only intensify.

Fintech platforms like Airwallex offer comprehensive solutions that address the specific needs of organizations dealing with international payments. From multi-currency accounts and high-speed transfers to automated reconciliation and robust security features, these platforms provide the tools universities need to modernize their payment infrastructure.

As the global education landscape becomes increasingly interconnected, Canadian universities that embrace fintech solutions will be better positioned to attract and serve international students. The combination of improved efficiency, reduced costs, and enhanced student experience makes fintech adoption not just an operational improvement, but a strategic imperative for universities competing in the global education market.

By partnering with established fintech providers that understand the complexities of international payments, universities can focus on their core mission of education while ensuring their financial operations run smoothly and efficiently. The future of university payment systems is digital, global, and powered by fintech innovation.

FAQ

Why are Canadian universities adopting fintech solutions for international student payments?

Canadian universities are adopting fintech solutions to address the growing complexity of international student payments as cross-border transfers are expected to increase 5% annually until 2027. These solutions help reduce high traditional banking fees, eliminate lengthy processing times, and provide better exchange rates for students paying from abroad.

What challenges do international students face with traditional payment methods?

International students typically face high wire transfer fees, poor exchange rates, lengthy processing delays of 3-5 business days, and complex banking procedures when paying tuition through traditional methods. These challenges can create financial stress and administrative burdens for both students and universities.

How do fintech payment rails improve the international student payment experience?

Modern payment rails enable faster, cheaper, and more transparent international transfers by leveraging digital infrastructure and local banking networks. This technology reduces settlement times from days to hours, offers competitive exchange rates, and provides real-time tracking of payment status for both students and university finance departments.

What are the benefits of using a global account for international student payments?

A global account allows universities to receive payments in multiple currencies without the need for separate local bank accounts in each country. This streamlines the payment process, reduces banking fees, and enables students to pay in their local currency while universities receive funds in Canadian dollars with transparent conversion rates.

How do fintech solutions help universities reduce administrative costs?

Fintech solutions automate payment reconciliation, provide real-time reporting dashboards, and integrate with existing student information systems. This reduces manual processing time, minimizes errors, and allows finance teams to focus on strategic initiatives rather than payment administration.

What security measures do fintech platforms provide for international student payments?

Leading fintech platforms implement bank-grade security including multi-factor authentication, encryption, regulatory compliance with local financial authorities, and fraud detection systems. These measures ensure student financial data is protected while maintaining compliance with both Canadian and international banking regulations.

Citations

1. https://www.jpmorgan.com/payments/payments-unbound/volume-3/cross-border-payment-modernization

2. https://www.imarcgroup.com/canada-payments-market

3. https://www.marketsandata.com/industry-reports/fintech-market

4. https://www.airwallex.com/ca/blog/how-to-open-a-business-bank-account

5. https://www.mycampuscard.com/success-stories/post/australian-international-school-singapore-1101

6. https://londontechweek.com/speakers/jack-zhang

7. https://www.airwallex.com/ca/blog/what-is-an-airwallex-global-account

8. https://sites.ontariotechu.ca/finance/treasury-and-financial-operations/corporate-credit-card-program.php