In his spring statement, Chancellor Phillip Hammond announced that 1p and 2p coins will be scrapped. The announcement came as a result of a study on cash and contactless payments that noted many consumers no longer use the coins.
When you think about it, it’s no surprise that people are moving away from cash and moving into an era of digital payments. Research by the UK Finance Association reported that there are 110.8 million contactless cards in the UK. The same research also reported £4.3 billion being spent in contactless payments – more than double the amount (£1.8 Billion) spent at the same time in 2016. The same report also stated that £9.23 was the average contactless transaction value in the UK, up 7%.
Why hasn’t it happened sooner?
Although contactless payments have been increasingly visible on the high street for 10 years, only a handful of charities have incorporated contactless giving into their fundraising. Partly this may have been due to the impracticalities of trying to use traditional point of sale devices and the complexity of the supply chain in a fundraising environment. But now the card industry has responded by developing contactless donaion boxes specifically designed for the purpose and simplifying the adoption process.
Here are just three reasons why charities should consider contactless payments
Receive more and higher donations
Research conducted by Nationwide Current Accounts found that those who make digital donations give an average of £5.47, compared with £2.34 for those who use cash.With less people carrying cash, more carrying contactless cards, contactless donation boxes today provide charities with the freedom to set their own fixed donation amount, requested repeatedly, or set increments such as £2, £5, £10 where they want to offer choice to the donor. Some boxes embed a chip and pin reader – useful if someone wants to make a larger donation.
A smarter way to track fundraising
Contactless donation boxes also allow charities to track donations in real time. This enables charities to set targets/placement strategies and monitor campaign effectiveness. In an increasingly regulated world, contactless donations provide the benefit of a robust audit trail from point of giving through to financial reporting.
Encouraging spontaneous donations
Just like their cash equivalents, the latest contactless donation boxes are quick and easy for people to use. The simplicity and speed of a contactless transaction encourages and allows for spontaneous transactions. Even in environments where time is short (commuters, foyer traffic or at outdoor events). They can also be incorporated into static units, such as reception areas of museums, churches or even as part of a window display in high street charity shops for 24/7 donations.
In the early days of contactless donation boxes charities voiced concerns about connectivity. However, the latest technology in contactless donation boxes even allows charities to collect donations offline and have them processed when connectivity is available.
Unlike cash donation boxes, there is no motivation for theft of contactless donation boxes, as all donations are transferred directly into the charity’s bank account, and the effort and cost of banking cash is eliminated.
Organisations like Payacharity now make it easy for charities to roll-out a contactless donation solution as part of their fundraising strategy. Each step of the process from application for a merchant account, set-up, fulfilment and support of the donation boxes is taken care of by Payacharity, leaving charities to focus on their fundraising activities.