How payments are evolving for Chinese students in Australia

For most international students, their struggle with payments begins before their arrival into Australia. Many are required to pay upfront for tuition and accommodation, secure OSHC (overseas student health cover), and often transfer enough money to cover their early living expenses. The need for fast, trusted and compliant cross border payment options is crucial. These options enable students to meet visa requirements and deadlines. 

But for many students, particularly those coming from countries with strict capital controls, making these payments can be complicated.

But for many students, particularly those coming from countries with strict capital controls, making these payments can be complicated. Countries such as China impose stringent controls to limit the outflow of local currency, creating significant barriers for students who need to transfer large amounts abroad. Often, students and families are forced to rely on informal workarounds, like using friends’ allowances or unregulated transfer services. These options are risky, non-compliant and stressful for all involved.

At the same time, students arriving from digitally advanced regions like Southeast Asia expect seamless, mobile-first experiences that mirror what they are used to at home.

The growing pressure on cross border payments

Payments for international students begin long before they land in Australia or New Zealand, often requiring upfront tuition fees, accommodation deposits, health cover, and initial living expenses. These payments are often time sensitive, and any delay can jeopardise a visa or enrolment.

However, the experience is not the same for all students. Those coming from countries with strict capital controls or limitations on foreign exchange can face additional hurdles. China is one of the most notable examples. Under current rules, Chinese citizens can only send the equivalent of 100,000 RMB (roughly AUD15,000) overseas per year. That figure falls well short of what is needed to fund tuition, living costs and accommodation for a full year in Australia.

Families are left with few options. Some attempt to get around the restrictions by using multiple people's transfer allowances or through informal money transfer services. These methods are not only stressful and unreliable, but can also raise red flags during compliance checks and introduce fraud risks for education providers.

The student expectation gap

At the same time, the expectations of international students are rising. Gen Z students arriving from digitally mature markets in Asia are used to seamless, app-based experiences. They want to pay using familiar mobile payment apps like Alipay and WeChat Pay and know that their payments are secure.

In many cases, there is a disconnect between what students expect and what institutions are currently set up to provide. Bank transfers can take days, require large amounts of manual input, and are prone to error. Some students have been caught out by delayed payments or incorrect references, only discovering the issue when their enrolment or accommodation status is at risk.

From a university or accommodation provider’s perspective, the stakes are just as high. Processing international payments can be time consuming and labour intensive. Poor visibility, reconciliation delays, and fraud risks all add complexity to what should be a straightforward process.

Creating more trusted pathways for Chinese students

To support students from China in particular, Novatti has developed a tailored China Payments solution. The product enables students to pay in their local currency using trusted platforms like Alipay and WeChat Pay. Behind the scenes, the payment is settled in full to the Australian or New Zealand institution, helping students to go beyond the RMB cap without breaching local restrictions.

Transaction are processed as a domestic Chinese payment on the student’s side. Novatti’s partnerships and infrastructure ensure that funds are moved compliantly through the appropriate channels, while the receiving organisation is paid the correct amount in AUD or NZD.

For students and families, it removes the stress and uncertainty. They can pay in a familiar way, see that their payment has been accepted, and avoid the risks of using informal money transfer channels. For education providers, the benefit is equally clear. The payment arrives quickly, includes the correct reference details, and appears as a local settlement. No need to chase bank transfer receipts or worry about compliance issues.

Why it matters for education providers

As the international education sector works to remain competitive, payments can no longer be viewed as an afterthought. From the first invoice through to graduation, every payment touchpoint is part of the student experience.

Education providers that streamline the payment process are better placed to attract and retain international students. They can reduce administrative overheads, limit fraud exposure, and build stronger relationships with students and families by offering transparent, trusted, and culturally aligned payment methods.

With billions in international student revenue flowing into Australia and New Zealand each year, it is essential that institutions provide modern, compliant and student-friendly payment pathways.

Why it matters for education providers

The international education sector is at a turning point. As digital payments become the norm, students will increasingly choose institutions that match their expectations.

Organisations that adapt early, invest in the right partnerships, and build trust at every stage of the student lifecycle will be best placed to grow and succeed in a rapidly changing global education landscape.

To discover how Novatti supports education providers, learn more here.