Flywire, which helps international students pay for college tuition in their home currency, has raised $100 million.
Flywire, a company that helps international students pay for college using their home currency recently announced that it raised $100 million in a series D round of funding. This will help the company expand its services.
The Boston-based company was founded in 2009 by Iker Marcaide and was originally known as peerTransfer. The platform offers convenient payment solutions for both domestic and international students. Since its inception, the company has processed over $8 billion in payments for over 1,400 clients.
Typically, international students who need to pay their tuition at U.S. colleges – and U.S. students studying abroad – have to do a wire transfer, which could take up to 10 days to process. And foreign exchange rate fees can be as high as 5 percent, according to Forbes.
But Flywire’s platform allows students to book their payments using their home currency at rates of just 1 or 2 percent. The company has worked with schools like Boston University and Cornell University.
Flywire clients can accept payments from 220 different countries and in over 100 currencies. Schools receive daily statements that are aggregated and have more transparency about the payments they are receiving.
Two years ago, Flywire began pursuing clients in healthcare and business. Healthcare was a natural transition for the company, as schools like the University of Miami also run hospitals.
The company is also actively pursuing business clients and began working with Segway and Hilton last year. However, universities still make up about 80 percent of the company’s revenue.
Mike Massaro joined Flywire as vice president in 2013. He later moved into the role of CEO when the company had 45 employees and $2 million in revenue. The company is now at 300 employees and after the newest funding round, its valuation falls just short of $1 billion.
Massaro said the company has grown quickly because it addresses the problem of complex payment processes. He said the company aims to “take the friction out of initiating, processing, and reconciling large-sum international and domestic payments.”
With this new funding, the company plans to continue to grow its presence in the U.S. It also plans to expand into markets in Africa, Latin America, and the Middle East.