A group of U.S. universities has begun allowing students and their families to pay tuition through PayPal and Venmo.

Bellarmine University, Butler University, Kansas State University, Michigan State University and Texas Tech University are among the first institutions to offer the payment options, and additional universities are expected to join later this year. Tuition has typically been paid by check, bank transfer or card through campus bursar's offices, so the rollout extends digital wallet acceptance to one of the largest recurring expenses many households face.

Students and families may face transaction or processing fees, with the amount depending on the university and the funding method used. Universities have long charged convenience or processing fees on card-based tuition payments, and the new digital wallet options sit within that existing fee structure rather than replacing it.

The new options are being integrated through campus payment platforms, including Illumina, Nelnet Campus Commerce and TouchNet, which process tuition payments for institutions across the country. Nelnet and TouchNet are long-standing providers of billing and payment software in U.S. higher education, which gives the PayPal and Venmo integrations a path into a wide base of campus systems.

"A modern tuition payment experience has to work for both sides of the transaction," Don Smith, Illumia's senior vice president and general manager of integrated payments, said in a statement.

"Students and families want the flexibility to use payment methods that fit how they manage their money, while institutions need those options to work within the systems and processes their teams already rely on," Smith added. "This integration helps schools expand choice in a practical way, improving the payer experience without creating a disconnected path for campus teams."

PayPal and its Venmo subsidiary have worked over the past year to expand their presence in higher education. The platforms have offered student-athletes the opportunity to receive institutional revenue-share payments, while Venmo has broadened its footprint on college campuses through NIL partnerships with student athletes, college-branded cards, student ambassadors and gameday activations.

Many students and families already use the digital payment systems for daily money transfers, including purchasing groceries, splitting rent and sending money to friends and family. Venmo's peer-to-peer service has been particularly popular among younger consumers, the same demographic now being offered the tuition option.

"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 and PayPal, said in a statement. "That's why we're proud to bring that same choice and protection into the reliable systems schools have already built."

The companies said PayPal and Venmo use security measures including encryption and fraud monitoring. U.S. consumer regulators, including the Consumer Financial Protection Bureau, have cautioned that money stored in nonbank payment apps may not carry the same deposit-insurance protections as funds held directly in a federally insured bank or credit union.

Certain eligible PayPal and Venmo balances may qualify for pass-through FDIC insurance when funds are placed at PayPal's program banks, which currently include Goldman Sachs Bank USA, Wells Fargo Bank and JPMorgan Chase Bank. Not all PayPal or Venmo balances qualify for the coverage.

FDIC pass-through insurance "protects against the failure of a Program Bank, not the failure of PayPal. PayPal is not a bank, does not take deposits and is not FDIC insured," PayPal said in a statement.