Smarter, safer, simpler: payment innovation in education

Payments are no longer back-office business

Payments were once an afterthought in education – now they’re part of the student and parent experience.

“Education hasn’t traditionally prioritised payments – but in the last five to ten years, we’ve seen a huge change in how schools and unis manage security, data, and reconciliation." Nathan Cause, CommBank’s Executive Manager Payment Strategy & Proposition

With new expectations from students, parents, and payers – and mounting pressure on finance teams – many institutions are now rethinking the role payments play in their experience strategy.

Cyber security is essential – and layered

The education sector is rich in data: student records, visa details, family information, and financial credentials. That makes it a prime target for cyber-attacks.

“We validate the business data before the transaction event hits the gateway, that means we stop false payments before they happen and improve reconciliation by making sure everything matches back to the source system,” Alan Smith, Nelnet’s Director of xetta.

From multi-factor authentication to hosted firewalls, layered defence is becoming standard across the sector.

BIN attacks are being blocked in real time

BIN (Bank Identification Number) attacks – where fraudsters test stolen cards on payment pages – are growing across the sector.

“We’ve seen institutions hit with hundreds of micro-transactions, we implemented a CAPTCHA layer, and the results were immediate. Fraud attempts dropped off dramatically.” Stephen Leeds, Linkly’s Head of Card Not Present

Proactive controls like this not only reduce costs but protect brand reputation – a critical concern for schools and universities alike.

Manual reconciliation is still holding teams back

Despite the push for digitisation, many institutions are still managing reconciliation across multiple systems – often manually.

“Up until very recently, we still had schools accepting bags of cash at the front desk. Now, by utilising BPOINT and it’s direct debit functionality, they have shifted to automated, flexible payment flows – reducing debtor days and saving time for staff”, says Alex MacInnes, Relationship Executive – Education at CommBank.

Frictionless payments = better experiences

The future of education payments is about creating smooth, embedded experiences –– not adding complexity.

“We work with universities like a city of micro-businesses,” said Alan from xetta. “Everyone wants a way to collect payments, but the back-end should feel like one connected system.”

Integrated platforms mean fewer clicks, faster reconciliation, and a single source of truth across tuition, excursions, donations and more.

International students expect better

Cross-border payments remain a challenge – especially when institutions are juggling payment types, currencies and platforms.

“We have to meet students where they are,” said Dan Sketcher, Mastercard Australia’s Head of MPGS. “They’re used to paying like locals in their home countries. Now they want that same experience here – without hidden costs or confusing steps.”

Solutions like tokenisation, Click to Pay, and international wallet integrations are helping deliver on that expectation.

Innovation needs to be built for scale

Education has peak periods – enrolment windows, course registrations, permit renewals – that can put serious pressure on systems.

“We host in Azure and scale based on known enrolment spikes,” said Alan from xetta. “That way, schools don’t have to worry about the system failing when 5,000 students are trying to pay for a course on the same day.”

The takeaway: make payments part of your experience strategy.

Education providers are no longer asking if they should modernise payments – they’re asking how.

“It’s complex but solvable. With the right partners, payments can go from an admin burden to a strategic enabler,” said Nathan Cause.

The most successful schools and universities are taking an ecosystem view – embedding payments into broader student, staff, and community experiences.