The COVID-19 pandemic has exacerbated the education affordability
crisis with students around the world. This is according to the new
report, Passport to Higher Education: A Global Payments Study, from
Flywire Corporation (Nasdaq: FLYW) which found that currently 71%
of undergraduate students are having difficulties making their
education payments due to the financial impact of the COVID-19
pandemic. This financial burden has also led three in five (61%)
students surveyed to consider delaying their higher education.
Flywire, a global payments enablement and software company,
surveyed over 1,000 college students in the United States, the
United Kingdom, Australia, Canada and China who are either
currently studying abroad or plan to in the future. The survey
uncovers major trends as the education sector grapples with the
effects of the COVID-19 pandemic on international education.
“Affordability issues in higher education are nothing new,
however the financial impact of the COVID-19 pandemic added an
additional layer of stress and uncertainty for international
students when it comes to payments,” said Sharon Butler, Executive
Vice President of Education at Flywire. “As vaccinations increase
worldwide, and students prepare for the return of in-person
learning in the fall, institutions can play a significant role in
providing a fulfilling and affordable experience that all students
deserve.”
Students Optimistic About International
Education
Optimism around international education offers a promising
outlook on the bounce back of studying abroad. Over half of
students (63%) are still interested in studying internationally as
their biggest motivations for doing so are the opportunity for new
cultural experiences (47%), the academic reputations of schools
abroad (43%), on-campus experience (37%) and value for the cost
(38%).
That said, over half (56%) of all students feel the process of
obtaining a student visa in the next year will change due to the
shifting global political climate. Undergraduates in the U.K. (65%)
and U.S. (61%) are the most likely to expect a change –
significantly more so than their counterparts in Canada (49%) and
China (48%).
Debt Holds Students Back from Opportunities
The political climate can also have an impact on relieving
student debt. This is an issue largely facing students in the U.S.
where the majority (89%) of those expected to pay off their student
loans said their debt has prevented or delayed them from pursuing
the following opportunities:
- Saving for a house/real estate (47%)
- Traveling (38%)
- Furthering their education (37%)
- Pursuing an internship or job opportunity (29%)
- Investing in relationships (23%).
As such, it’s not surprising that three in five U.S. students
(60%) support President Biden’s anticipated plans to reduce the
burden of student loan debt in some capacity.
Installment Options and Efficient Payment Process Can
Improve Experience
Institutions can begin to tackle affordability by implementing
payment plans, as seven in ten students say the option to merely
pay their educational bills in installments would provide much
needed relief.
The process of making tuition payments should also not be
overlooked with 72% of students stating that it has become a
significant stressor because of the pandemic. Although the stress
is largely attributed to financial difficulties (41%), over a
quarter (28%) say it’s driven by unclear processes from their
institution followed by the lack of online payment options
(20%).
“With over three in four students stating that access to a
simplified payment process would improve their higher education
experience, institutions can take an active role in alleviating
some of the stress for students paying for university,” explained
Butler. “By implementing flexible payment options and online
payment methods, international and domestic students can spend more
time focusing on getting the most out of their education and
preparing for life outside of the classroom.”
Survey Methodology
Flywire commissioned Engine Insights to conduct a survey of
adults 18 years of age or older in five countries to understand the
role payments play in their pursuit of higher education. This
survey is among 1,010 students, with 202 from the United States,
the United Kingdom, Australia, Canada, and China. This survey was
conducted online between March 12 and 18, 2021.
About Flywire
Flywire Corporation (Nasdaq: FLYW) is a global payments
enablement and software company. Flywire combines its proprietary
global payments network, next-gen payments platform and
vertical-specific software to deliver the most important and
complex payments for its clients and their customers.
Flywire leverages its vertical-specific software and payments
technology to deeply embed within the existing A/R workflows for
its clients across the education, healthcare and travel vertical
markets, as well as in key B2B industries. Flywire also integrates
with leading ERP systems, so organizations can optimize the payment
experience for their customers while eliminating operational
challenges.
Flywire supports 2,250+ clients with diverse payment methods in
more than 130 currencies across 240 countries and territories
around the world. The company is headquartered in Boston, MA, USA
with global offices. For more information, visit www.flywire.com.
Follow Flywire on Twitter, LinkedIn and Facebook.
Safe Harbor Statement
This release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, but not limited to, statements regarding our future
operating results and financial position, our business strategy and
plans, market growth, and our objectives for future operations.
Flywire intends such forward-looking statements to be covered by
the safe harbor provisions for forward-looking statements contained
in Section 21E of the Securities Exchange Act of 1934 and the
Private Securities Litigation Reform Act of 1995. In some cases,
you can identify forward-looking statements by terms such as, but
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actual results to differ materially from those reflected in
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Flywire’s future financial performance, including its expectations
regarding our revenue, cost and operating expenses, including
changes in technology and development, selling and marketing and
general and administrative expenses (including any components of
the foregoing), gross profit and Flywire’s ability to achieve, and
maintain, future profitability; Flywire’s business plan and its
ability to effectively manage its growth; Flywire’s market
opportunity, including estimates regarding its total addressable
payment volume; Flywire’s cross-border expansion plans and ability
to expand internationally; anticipated trends, growth rates, and
challenges in Flywire’s business and in the markets in which it
operates; the sufficiency of Flywire’s cash and cash equivalents to
meet its liquidity needs; political, economic, legal, social and
health risks, including the recent COVID-19 pandemic and subsequent
public health measures that may affect Flywire’s business or the
global economy; beliefs and objectives for future operations;
Flywire’s ability to develop and protect its brand; Flywire’s
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Flywire’s ability to further attract, retain, and expand its client
base; Flywire’s ability to develop new solutions and services and
bring them to market in a timely manner; Flywire’s expectations
concerning relationships with third parties, including strategic
partners; the effects of increased competition in Flywire’s markets
and its ability to compete effectively; future acquisitions or
investments in complementary companies, products, services, or
technologies; Flywire’s ability to enter new client verticals,
including its relatively new B2B sector; Flywire’s expectations
regarding anticipated technology needs and developments and its
ability to address those needs and developments with its solutions;
Flywire’s expectations regarding litigation and legal and
regulatory matters; Flywire’s expectations regarding its ability to
meet existing performance obligations and maintain the operability
of its solutions; Flywire’s expectations regarding the effects of
existing and developing laws and regulations, including with
respect to payments and financial services, taxation, privacy and
data protection; economic and industry trends, projected growth, or
trend analysis; Flywire’s ability to attract and retain qualified
employees; Flywire’s ability to maintain, protect, and enhance its
intellectual property; Flywire’s ability to maintain the security
and availability of its solutions; the future market price of
Flywire’s common stock; and other factors that are described in the
"Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" sections of
Flywire's Prospectus, which is on file with the Securities and
Exchange Commission (SEC) and available on the SEC's website at
https://www.sec.gov/. Additional factors may be described in those
sections of Flywire's Quarterly Report on Form 10-Q for the quarter
ended June 30, 2021, expected to be filed with the SEC in the third
quarter of 2021.
Contacts
Media Contacts:Sarah
KingSarah.King@Flywire.comProsek
Partnerspro-flywire@prosek.comInvestor
Relations
Contact:ICRflywireir@icrinc.com
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