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PayPal and Venmo now accepted for tuition at several universities
Fox Business • • business
Key Points:
- Several universities, including Bellarmine, Butler, Kansas State, Michigan State, and Texas Tech, are now allowing tuition payments via PayPal and Venmo, with more institutions expected to adopt these options later this year.
- These payment methods are integrated through campus platforms like Illumia, Nelnet Campus Commerce, and TouchNet, offering flexibility for students and families, though transaction fees may apply depending on the university and payment method.
- PayPal and Venmo have expanded their presence in higher education through partnerships with student-athletes and campus initiatives, aiming to provide secure and convenient payment solutions for large tuition transactions.
- While PayPal and Venmo employ encryption and fraud monitoring for security, consumer regulators warn that funds stored in these nonbank apps may lack the same deposit insurance protections as traditional banks, though some balances may qualify for FDIC pass-through insurance via partner banks.
- PayPal clarified that it is not a bank and is not FDIC insured; FDIC pass-through insurance only covers funds held at participating program banks, not PayPal itself.
