Flywire Corporation (FLYW): Business Model Canvas [Dec-2025 Updated]

You're digging into the mechanics of how Flywire Corporation (FLYW) actually makes its money, and honestly, it's less about being a simple payment processor and more about being a deeply embedded financial operating system for specific, high-value sectors. After two decades analyzing these plays, I can tell you their strength lies in that vertical focus-think of their Student Financial Software collecting over $320 million in past-due tuition alone, which is a massive value-add beyond just moving money. With Q3 2025 revenue hitting $200.1 million, up 27.6% year-over-year, their strategy of integrating directly into client Accounts Receivable workflows is clearly working, making their platform sticky. To see exactly how they lock in those institutional clients across Education and Healthcare through proprietary networks and key partnerships, check out the full Business Model Canvas breakdown we've mapped out below.

Flywire Corporation (FLYW) - Canvas Business Model: Key Partnerships

You're looking at how Flywire Corporation builds value through its network of strategic alliances, which is critical for scaling its global payment enablement and software platform. These aren't just vendor relationships; they are deep integrations that lock in value across education, travel, and B2B sectors.

TenPay Global (Tencent) for Weixin Pay Integration in Asia

Flywire Corporation has actively deepened its collaboration with TenPay Global, Tencent's cross-border payment platform, to bring Weixin Pay (also known as WeChat Pay) directly into the payment journey for Chinese students. This expansion specifically targets high-growth education corridors in Asia. You can see the underlying market growth driving this partnership:

• Chinese student enrollment in Malaysia increased fivefold since 2019, reaching over 47,000 students in 2024.
• South Korea hosted approximately 73,500 Chinese students from China in 2024.

This direct connection lets families initiate and complete tuition payments in Renminbi (RMB) via their familiar Weixin app. For the institutions in South Korea and Malaysia, the benefit is receiving the full amount reconciled in their local currency, which sharpens their cash flow. Calvin Chen, VP of Payments at Flywire, noted this helps institutional clients capture this substantial new payment volume efficiently.

Enterprise Resource Planning (ERP) Providers like Workday and NetSuite

Integrating with core financial systems is where Flywire really embeds itself into client operations. You've got to look at the tangible efficiency gains reported from these deep connections. Flywire supports over 4,900 clients as of Q3 2025, and ERP integration is key to that scale.

The expanded partnership with Workday, Inc. is a big one; Flywire is now a Workday Certified provider for Workday Student. This integration allows institutions using Workday Student to manage billing and payments directly within the system, with real-time posting of transactions and updates. Here's the quick math on the claimed efficiency:

Also, Flywire integrates with NetSuite, along with other major systems like SAP S/4HANA and Oracle EBS, to automate reconciliation and digitize receivables, reducing manual work for finance teams.

Global Banking and Payment Processing Partners for Local Payment Methods

The core of Flywire's value proposition is its global payment network, which supports diverse payment methods. As of Q1 2025, Flywire supported payments in over 140 currencies across more than 250 countries and territories. By Q3 2025, the client count was over 4,900. To support this, Flywire continues to expand its banking relationships; for instance, in Q2 2025, the company increased its Revolving Credit Facility from $125 million to $300 million alongside expanded banking partnerships. The Total Payment Volume (TPV) reached $13.9 billion in Q3 2025.

Stablecoin Payment Infrastructure Provider for New Payment Rails

Flywire is clearly looking beyond traditional rails. In the Second Quarter of 2025, the company announced a partnership with a leading provider of stablecoin-native payment infrastructure. This move is designed to integrate stablecoin payment capabilities directly into Flywire's global payment network, opening up new, potentially faster, rails for cross-border transactions.

Sertifi for Hospitality and Travel Workflow Software

The acquisition of Sertifi, for $330 million in cash and debt, significantly bolsters the Travel vertical. Sertifi immediately gave Flywire access to over 20,000+ hotel locations globally, including major brands like Marriott, Hilton, and Hyatt. This partnership is expected to be a significant revenue contributor for the full fiscal year 2025, projected to add approximately $35-40 million in revenue. The contribution is already material; Sertifi added $12.9 million to Q3 2025 revenue alone. If onboarding takes 14+ days, churn risk rises, but Sertifi's platform digitizes workflows, which should help speed things up. Sertifi's pro-forma revenue growth was reported at +35% year-over-year.

Flywire Corporation (FLYW) - Canvas Business Model: Key Activities

You're looking at the core engine driving Flywire Corporation's performance as of late 2025. The Key Activities aren't just about moving money; they're about embedding deep, sticky software solutions around those transactions. Here's the breakdown of what Flywire Corporation is actively doing to maintain and grow its market position.

Operating and expanding the proprietary global payments network

This is the plumbing, the actual cross-border capability that underpins everything else. Flywire Corporation is constantly optimizing this network to handle volume and complexity. The scale of this operation is clear when you look at the transaction throughput. For the third quarter of 2025, Total Payment Volume (TPV) increased 26.4% year-over-year, hitting $13.9 billion. This massive volume is processed across their platform, which supports diverse payment methods in over 140 currencies across 250 countries and territories. They are also actively integrating new payment rails, like announcing a partnership in Q2 2025 to integrate stablecoin payment capabilities.

Developing vertical-specific software (e.g., Student Financial Software)

The software is what makes the payments sticky, moving Flywire Corporation beyond a simple processor. The Student Financial Software (SFS) segment provides concrete, measurable value to institutions. For example, as reported in Q3 2025, SFS Collection Management has successfully collected more than $360 million in past-due tuition. Furthermore, this software delivered $72 million in pre-collection savings and, critically for the institutions, preserved over 177,000 student enrollments. This is software driving tangible operational and enrollment outcomes.

Deeply embedding into client Accounts Receivable (A/R) workflows

Embedding means integrating directly into the client's existing systems, making switching costs high. Flywire Corporation achieves this by integrating with leading Enterprise Resource Planning (ERP) systems, such as NetSuite. This deep integration is what allows them to optimize the payment experience while eliminating operational headaches for the client. As of Q2 2025, Flywire Corporation supported over 4,800 clients. The success of this embedding strategy is reflected in the performance of their acquired software, where synergies in the B2B sector are showing significant Annual Recurring Revenue (ARR) and gross profit expansion when upselling existing clients with payment capabilities.

Client acquisition and retention

Growth requires consistently bringing in new logos while keeping the existing base happy-low client churn is a key indicator of success here. In the third quarter of 2025, Flywire Corporation added more than 200 new clients. This momentum led management to raise the Fiscal Year 2025 revenue guidance by 400 basis points at the midpoint. The company emphasizes low client churn, which suggests their deep embedding is working to retain that customer base.

Here's a quick look at the Q3 2025 financial performance that validates these activities:

Ensuring global regulatory compliance and payment security

Handling complex, cross-border, high-value payments demands an unwavering focus on security and compliance. Flywire Corporation's activity here is recognized at an industry level; they were named to the PCI Security Standards Council 2025-2027 Board of Advisors. This isn't just a badge; it means their leadership is helping to shape future payment security standards. Their operational security posture is maintained through rigorous, recurring checks:

• PCI DSS Level 1 Certification (most stringent level).
• Annual SOC II Type II security audits.
• Compliance with laws like GDPR, PIPEDA, FERPA, and GLBA.

This focus translates directly into low risk. The true fraud chargeback rate was just 0.01%, significantly below the industry benchmark of 0.5%. If you're managing risk, those numbers defintely matter. Finance: draft 13-week cash view by Friday.

Flywire Corporation (FLYW) - Canvas Business Model: Key Resources

You're looking at the core assets Flywire Corporation (FLYW) relies on to run its global payments enablement and software business as of late 2025. These aren't just line items on a balance sheet; they are the engines driving their cross-border transaction capabilities.

The foundation is definitely the proprietary global payments network. Flywire Corporation supports its operations across more than 240 countries and territories worldwide. This massive reach allows them to process payments in over 140 currencies. Think of this network as the physical plumbing that makes complex, high-value cross-border payments feel simple for the end-user.

Another critical resource is the sheer scale of their client base. Flywire Corporation supports more than 4,900 institutional clients across its core verticals. To give you context, as of the end of 2024, they served approximately 4,500 clients, showing continued growth through 2025. For instance, in the first quarter of 2025 alone, they signed more than 200 new clients.

The technology itself-the next-generation payments platform and vertical-specific software-is a key differentiator. This platform is designed to deeply embed within clients' existing accounts receivable workflows. They ensure this integration works smoothly by connecting with leading Enterprise Resource Planning (ERP) systems, such as NetSuite. This software layer turns a payment from a simple transaction into a source of value and growth for the client organization.

You can't talk about payment technology without mentioning the intangible assets, specifically the strong intellectual property in cross-border payment technology. This IP is what underpins the tailored invoicing, flexible payment options, and personalized omni-channel experiences Flywire Corporation offers.

Furthermore, the company's commitment to security is formalized through its involvement in setting industry standards. Flywire Corporation was named to the PCI Security Standards Council (PCI SSC) Board of Advisors for the 2025-2027 term. This marks their second consecutive appointment to this prestigious board, reflecting their expertise and influence in shaping global payment security protocols. They maintain the highest level of data security certification, being PCI DSS Level 1 certified.

To map this operational scale against recent financial performance, here's a quick look at the numbers from the third quarter of 2025:

The platform's capabilities extend across their core verticals, which you should keep in mind when evaluating growth. These verticals include Education, Healthcare, Travel, and B2B. For example, in the second quarter of 2025, their Student Financial Software (SFS) helped preserve enrollment for over 161,000+ students by collecting more than $320 million in past-due tuition at U.S. institutions.

The company's ability to attract and retain high-value partners is also a key resource, evidenced by their recognition:

• Recognized by Virtuoso as a Technology Partner, gaining access to 2,300 preferred suppliers across 100 countries.
• Deepened partnership with Ellucian, deploying new integrations into Banner via Ellucian Ethos.
• Maintains robust anti-financial crimes compliance programs required by global regulators.

Finance: draft 13-week cash view by Friday.

Flywire Corporation (FLYW) - Canvas Business Model: Value Propositions

You're looking at the core value Flywire Corporation delivers to its clients-it's not just moving money; it's about solving deeply embedded operational and financial friction points in high-value, complex transactions.

Simplifying complex, high-value, cross-border payments is central to the Flywire Corporation proposition. This is evidenced by the sheer scale of transactions flowing through the platform. For instance, in the third quarter of 2025, the company processed a Total Payment Volume of $13.9 billion, marking a 26.4% year-over-year increase. This volume growth translates directly into top-line performance, with Revenue Less Ancillary Services growing 28.2% year-over-year to reach $194.1 million in Q3 2025. Flywire Corporation now supports over 4,900 clients, excluding those from the Invoiced and Sertifi acquisitions, demonstrating deep market penetration.

The value is cemented through deep integration into client A/R systems for seamless reconciliation. Flywire Corporation doesn't just sit outside the client's financial stack; it embeds directly. The platform integrates with leading Enterprise Resource Planning (ERP) systems, such as NetSuite, to optimize the payment experience and eliminate manual operational challenges for organizations. Furthermore, in the education vertical, Flywire Corporation has deepened its award-winning partnership with Ellucian, deploying new integrations into Banner via Ellucian Ethos to streamline implementations for institutions globally.

Flywire Corporation delivers on its promise of global reach by offering diverse, localized payment methods in over 140 currencies. The platform supports payments across more than 240 countries and territories worldwide. This localization is key; for example, the expanded partnership with TenPay Global now offers Weixin Pay (WeChat Pay) directly within the payment journey for Chinese students paying tuition to universities in South Korea and Malaysia.

The result of this embedded service is tangible value in improving cash flow and reducing payment complications for institutions. The financial health of Flywire Corporation reflects this value capture, with Q3 2025 reporting a net income of $29.6 million and an Adjusted EBITDA of $57.1 million, representing a 29.4% margin.

Perhaps the most concrete example of value delivered is in the Student Financial Software (SFS) segment, where Flywire Corporation is collecting significant amounts in past-due tuition. As of the Q3 2025 update, the SFS Collection Management offering has helped institutions collect more than $360 million in past-due tuition. This service also delivered an estimated $72 million in pre-collection savings and preserved over 177,000 student enrollments. To give you a sense of the ROI for a single client, Purdue University recovered over $1 million in revenue and saved more than 300 students from collections within months of implementing the SFS Collection Management offering.

Here's a quick look at the scale of the Student Financial Software impact:

The breadth of payment options and global reach is summarized below:

• Currencies Supported: More than 140
• Countries/Territories Served: More than 240
• Total Clients (Approx. Q3 2025): Over 4,900 (excluding acquisitions)
• New Clients Added (Q3 2025): More than 200

Finance: draft 13-week cash view by Friday.

Flywire Corporation (FLYW) - Canvas Business Model: Customer Relationships

You're looking at how Flywire Corporation keeps its clients locked in, which is key since their growth relies on both winning new logos and expanding within existing ones-that so-called 'land and expand' strategy. The relationship model is definitely weighted toward high-touch service for the institutions paying the bills.

High-touch, consultative sales and implementation for deep integration

Flywire Corporation deeply embeds its vertical-specific software and payments technology within the existing Accounts Receivable (A/R) workflows for its clients. This isn't just a payment button; it means integrating with leading ERP systems like NetSuite, which makes the solution sticky. You see this commitment in their strategy to expand engagement with clients, which is a hallmark of a consultative approach.

Dedicated client success teams for low client churn

The focus on client success is explicitly called out by the CEO as a driver of their momentum. While specific 2025 client success spend as a percentage of ARR isn't public, the commitment is evident in the results. Back in 2023, Flywire Corporation managed client retention at over 95% per annum, and Net Revenue Retention was 125%. The goal is clearly to maintain that high floor of retained revenue.

Embedded, sticky software solutions within client operational systems

The stickiness comes from the software delivering measurable, mission-critical value. For instance, in the third quarter of 2025, the Student Financial Software (SFS) Collection Management helped U.S. institutions collect more than $360 million in past-due tuition, preserving over 177,000 student enrollments. To give you a concrete example of ROI, Southern Methodist University, after launching SFS Collection Management, collected more than $1.5 million in past-due debt in its first few months alone.

Here's a quick look at the scale of the client base and recent growth:

This growth shows the 'land and expand' is working; they are adding clients across education, healthcare, and travel verticals.

Self-service support for payers (students, patients, businesses)

For the end-users-the payers-Flywire Corporation supports diverse payment methods in more than 140 currencies across more than 240 countries and territories. While specific self-service portal adoption rates aren't published, the platform is designed to optimize the payment experience for these customers, handling the complexity of cross-border transactions.

Annual client conferences to foster community and product feedback

Community building is tangible through their events. The second-annual Flywire Fusion conference for U.S. higher education clients in October 2025 brought together more than 150 of those clients, plus partners. Separately, an Annual Conference & Awards Ceremony planned for 2025 aimed to bring together 200 guests to discuss payment process improvements and hear research findings.

You can see the engagement level through the attendees:

• More than 150 U.S. college and university clients attended Flywire Fusion 2025.
• Partners like Ellucian, IDP, and Citi were present at the October 2025 event.
• Another planned 2025 Annual Conference targeted 200 guests.

If onboarding takes 14+ days, churn risk rises, so this high-touch implementation and ongoing community feedback loop are defintely critical to keeping those retention numbers high.

Flywire Corporation (FLYW) - Canvas Business Model: Channels

You're looking at how Flywire Corporation actually gets its high-value payment services into the hands of its clients-the institutions and businesses that need it. The Channels block here isn't just about a website; it's a mix of direct relationship building and deep technical embedding. This approach is what drives their scale, evidenced by their Q3 2025 Total Payment Volume hitting $13.9 billion, up 26.4% year-over-year.

Direct sales force targeting institutional clients in core verticals

Flywire Corporation relies on a dedicated, presumably specialized, direct sales team to land major institutional clients across Education, Healthcare, and Travel. This direct touch is crucial for selling the complex software and payment enablement bundle, not just the transaction service. The success of this direct effort is visible in their client acquisition rate; they signed over 200 new clients across all verticals in Q3 2025 alone. This sales momentum helped push Q3 2025 revenue up 27.6% to $200.1 million compared to the prior year.

Software integrations with major ERP and financial systems

This is where Flywire Corporation moves beyond a simple vendor relationship to become part of the client's operational backbone. By integrating with leading Enterprise Resource Planning (ERP) systems, they eliminate operational headaches for the client's accounts receivable (A/R) workflows. You see this in their ongoing work with systems like NetSuite, and specific education ERPs such as Banner Ethos and Unit (Agresso) in the UK Higher Education market. This deep embedding is what creates that sticky client relationship. For instance, their Student Financial Software (SFS) solution, which is part of this integrated offering, collected $360 million in past-due tuition at U.S. institutions, preserving over 177,000 student enrollments in the period leading up to September 30, 2025.

Proprietary payment portal embedded in client websites/invoices

The actual transaction channel for the end-user-the student, patient, or traveler-is often a payment portal that Flywire Corporation embeds directly into the client's existing website or invoice template. This is the front-end experience that needs to be seamless. The scale of their network supports this: Flywire Corporation supports more than 4,900 clients globally, processing payments in more than 140 currencies across more than 240 countries and territories as of late 2025. This massive footprint requires a highly functional, embedded portal.

Here's a quick look at the scale of their reach across these channels:

Strategic channel partnerships (e.g., Workday, TenPay Global)

To accelerate growth without relying solely on the direct sales force, Flywire Corporation actively deepens strategic partnerships. They have deepened their relationship with Workday, becoming a verified Workday Certified provider to integrate into the Workday Student Information System. Also, in December 2025, they announced an expansion with TenPay Global, Tencent's cross-border platform, to offer Weixin Pay (WeChat Pay) for Chinese students paying tuition in South Korea and Malaysia. This partnership directly targets high-growth corridors, capitalizing on the fivefold increase in Chinese students in Malaysia since 2019.

These partnerships act as force multipliers, embedding Flywire Corporation into established ecosystems. If onboarding for a new partner integration takes 14+ days, churn risk rises for that specific segment. Finance: draft 13-week cash view by Friday.

Flywire Corporation (FLYW) - Canvas Business Model: Customer Segments

You're looking at the core groups Flywire Corporation serves, the ones generating that complex payment volume. Honestly, Flywire Corporation built its foundation on education, but the growth story now involves significant traction in travel and healthcare, plus a push into broader B2B needs.

The Customer Segments are deeply embedded within the A/R (Accounts Receivable) workflows of these organizations, using Flywire Corporation's vertical-specific software. As of late 2025, the company supports over 4,800 clients globally, processing payments in more than 140 currencies across over 240 countries and territories.

Education Institutions (Universities, K-12, International Schools)

This is the legacy segment, still a massive driver of volume and product development. Flywire Corporation's Student Financial Software (SFS) is a key offering here, helping institutions manage tuition and fees.

• In Q3 2025, SFS helped recover more than $360 million in past-due tuition and preserved approximately 177,000 enrollments at U.S. institutions.
• The U.K. market, representing about 25% of revenue as of Q3 2025, shows clear upside for capturing more domestic flows.
• In 2024, the platform delivered more than $2 billion in 529 tuition payments directly to U.S. colleges and universities, benefiting over 750 U.S. institutions.

Healthcare Providers (Hospitals, Large Medical Groups)

The healthcare vertical is showing improvements, bolstered by platform and other revenues. Flywire Corporation focuses on complex, high-value medical payments.

• This vertical, alongside B2B and travel, accelerated growth in Q3 2025.
• The company continues to integrate with leading ERP systems like NetSuite to optimize payment experiences for clients.

Travel Companies (Hospitality, Tour Operators like Haman Group)

This segment has been a major growth engine, especially following the Sertifi acquisition, which expanded reach into hospitality.

• The travel vertical outperformed expectations in Q1 2025.
• Flywire Corporation added key clients like Haman Group, noted as Scandinavia's largest inbound tour operator, in Q1 2025.
• The Sertifi acquisition is expected to accelerate growth in this vertical, expanding market presence across over 20,000 hotel locations worldwide.
• Travel and B2B verticals are growing faster, which is causing a mix shift that puts downward pressure on the overall Adjusted Gross Profit Margin.

Key Business-to-Business (B2B) Industries with Complex Payment Needs

Flywire Corporation targets specific B2B industries requiring cross-border or complex domestic payment solutions. This is a key area for platform-related growth.

Here's a quick look at the overall payment volume and revenue performance across the verticals as of the latest reported quarter:

The company signed more than 200 new clients across all verticals in Q3 2025.

Flywire Corporation (FLYW) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive Flywire Corporation's spending as of late 2025. Honestly, the cost structure reflects a high-growth, global tech company still investing heavily, but now with a new focus on efficiency following some headwinds.

Cost of Revenue: Payment processing fees and foreign exchange (FX) hedging costs

This is the direct cost of moving money for your clients. For the third quarter ended September 30, 2025, Flywire Corporation's GAAP Cost of Revenue was approximately $75.4 million, calculated by taking the reported total Revenue of $200.1 million and subtracting the Gross Profit of $124.7 million. This figure directly reflects the variable costs associated with transaction volume, which hit $13.9 billion in Total Payment Volume for Q3 2025.

Technology and Development, Sales and Marketing, and General and Administrative expenses

These operating expenses are where the platform scales and the client base grows. Here's a look at the latest reported quarterly figures from the third quarter of 2025, which gives you a solid view of the current run rate before the full impact of the early 2025 restructuring is reflected in later quarters.

Note that the table above uses figures from the operating expense breakdown provided for Q3 2025. The line item labeled 'Payment Processing Services' in that source's table, which was $186.40 million in Q3 2025, is excluded here as it is typically classified as Cost of Revenue, which we calculated separately above.

Personnel costs, optimized by a 10% workforce reduction in early 2025

Personnel is definitely the largest driver within the Sales and Marketing, G&A, and Technology buckets. Flywire Corporation made a significant move to address cost intensity in early 2025. The company cut about 10% of its global workforce, which equated to approximately 125 employees. This was a direct response to 'significant headwinds' that led to a fourth-quarter loss in 2024. The stated goal of this restructuring, alongside a comprehensive review of operations, was to increase efficiencies.

The AI-driven operating efficiency efforts are also helping here; the self-service rate rose to 41% year-over-year by Q3 2025, which is a 28% year-over-year increase, helping to decouple support costs from growth. That's a smart way to manage headcount costs going forward.

General and Administrative expenses for global operations

G&A costs, reported at $127.30 million for Q3 2025, cover the necessary overhead for a global footprint. This includes costs for compliance, finance, legal, and executive functions supporting operations across all four verticals: Education, Travel, Healthcare, and B2B. The company is focused on maintaining go-to-market productivity while lowering the operating expense intensity across S&M, G&A, and Tech. The Q3 2025 Adjusted EBITDA margin was 29.4%, up 155 basis points year-over-year, showing that expense discipline is starting to pay off.

Finance: review Q4 2025 OpEx against the Q3 run-rate by January 15, 2026.

Flywire Corporation (FLYW) - Canvas Business Model: Revenue Streams

You're looking at how Flywire Corporation (FLYW) actually brings in the money, which is a mix of transaction-based revenue and software subscriptions. The core of the business model relies on capturing value from the movement of money and the use of its specialized platforms.

For the third quarter ending September 30, 2025, Flywire Corporation (FLYW) reported total revenue of $200.1 million, marking a 27.6% increase year-over-year. This top-line performance beat internal guidance. A key metric for understanding the core payment business is Revenue Less Ancillary Services (RLAS), which was $194.1 million in Q3 2025, up 28.2% year-over-year. On an FX-neutral basis, RLAS growth for Q3 2025 was 26.3%.

The revenue streams break down into a few clear buckets:

• Payment processing fees (transaction fees) from payers and institutions are the largest component, embedded within the RLAS figure.
• Foreign exchange (FX) margin on cross-border transactions is a component of the payment revenue, though it can fluctuate; for instance, the company recorded a $0.6 million foreign exchange loss during Q3 2025.
• Software-as-a-Service (SaaS) fees for vertical-specific platforms, like those from the Sertifi acquisition, contribute directly to revenue. Sertifi alone added $12.9 million to Q3 2025 revenue, accounting for 8 points of the year-over-year growth.

The growth in non-transactional software revenue is a significant trend. For the second quarter of 2025, Platform and other revenues increased 84% year-over-year. This growth was driven by platform fees and improvements within the healthcare vertical. In that same Q2 2025 period, Sertifi contributed $12 million to revenue.

Here's a look at how the key revenue components stacked up across the mid-2025 reporting periods:

You can see the shift in the gross margin, moving from 57.0% in Q2 2025 to 62.3% in Q3 2025, which suggests that the mix of revenue, or perhaps better operational leverage on the core payment processing, is improving as the year progresses. The company is clearly leaning into the higher-margin software components to supplement the transaction revenue base.