# Flywire Financial Model

Cross-border payment platform for international tuition and high-value transactions (originally peerTransfer, rebranded flywire in 2015) [DECK]

- Canonical: https://finamodel.com/startups/flywire
- Excel download: https://finamodel.com/startup-models/flywire.xlsx
- Category: Fintech
- Model type: Marketplace / GMV
- Funding round: Series C

- Founded: 2019
- Geography: Global cross-border (US-centric regulatory framing; serves international students paying foreign institutions) [DECK]
- Customer: B2B2C

## About the company

Flywire is a cross-border payments platform built initially around international tuition and other high-value payments. It helps institutions and payers manage foreign exchange, local payment methods, and the operational complexity of moving money internationally.

The platform’s institutional relationships make education a natural core market, with similar payment mechanics applicable to other complex verticals. Its revenue is expected to come from payment processing and FX spread rather than conventional subscription software alone.

The model should forecast enrolled institutions, payer cohorts, payment volume per payer, and cross-border TPV by corridor. Net FX spread and processing fees convert volume into revenue, while institution retention, payer conversion, and payment-cost rates determine operating leverage.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

- Cross-border payment processing for high-value transactions, primarily international student tuition payments
- Connects international payers (students) with institutions (universities/hospitals/etc.) via FX rails
- Claims to have "nailed the Education Market"
- Exploring adjacencies: hospitals, travel/real estate, luxury goods/services - described as "approached by numerous potential clients" but "completely unproven"
- Positioning vs. legacy vendors in cross-border payments

## Revenue model

Not explicitly stated in deck. Implied model: FX spread and/or payment processing fees on cross-border transaction volume (standard for cross-border payment processors).

## Competition / moat

- Acknowledges "legacy vendors" as incumbent competitors who will see flywire as a threat
- Moat implied by vertical specialization (education) and institutional relationships with "large banking and card associations, issuers"
- No explicit competitive landscape slide

## Team & funding ask / use of funds

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## Recommended financial model

- **Archetype + why:** Cross-border payment / transaction volume P&L (GMV/TPV-based model). Revenue = FX spread + processing fee on Total Payment Volume (TPV). This is the standard architecture for cross-border payment processors. Secondary layer: institutional SaaS/platform fee per enrolled institution.
- **Forecast horizon & granularity:** 5-year annual model (Years 1–5), monthly for Year 1. Granularity at institution-cohort level for education vertical; separate line for new verticals (hospitals, travel/real estate) from Year 2+ onward.
- **Key drivers & assumptions:**
  - Number of institutional clients (universities/hospitals)
  - Average payment volume per institution per year (TPV per institution)
  - Number of transactions per institution
  - Take rate / net revenue yield on TPV
  - FX spread contribution vs. processing fee split
  - New vertical ramp (hospitals, travel, luxury) - 
  - Headcount and OpEx growth
  - Regulatory/compliance cost as % of revenue
- **Scenarios (Base / Bull / Bear - which variables flex):**
  - Bear: Education vertical only; slow new-client adds; take rate compression from legacy vendor competition
  - Base: Education dominant + hospitals/travel by Year 2–3; stable take rate; moderate regulatory drag
  - Bull: Rapid new vertical expansion (hospitals + travel/real estate win early); blockchain/digital rails reduce friction and expand TAM; take rate holds
- **Required sheets / outputs:**
  1. Assumptions - all drivers and toggles
  2. Volume Build - institution count × TPV per institution = total TPV; split by vertical
  3. Revenue Build - TPV × take rate; FX spread vs. processing fee breakdown
  4. P&L - gross revenue → net revenue (after FX costs) → gross profit → EBITDA
  5. Headcount & OpEx schedule
  6. Cash Flow / Runway (if funding info surfaces)
  7. Scenario summary table (Bear / Base / Bull on TPV, revenue, EBITDA margin)

## Frequently asked questions

### Is the Flywire financial model free?

Yes. The Flywire model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.