Covid-19 has been a major disruptor for all major industries worldwide. Multiple sectors have toppled under the financial burden culminated due to the pandemic. Despite this many businesses have adapted and adopted technology to break free of the shackles of a restrictive business environment. The only thing that remains constant in this new world order is the vast income disparities that exist in the society we live in and it will take major collaborative efforts to fix this situation.
Various tech-revolutions over the years have often been focused on numbers, statistics and profits. Although technology has grown by leaps and bounds the technology for facilitating “cashless gratuity” has often been overlooked.
One of the key goals of charities in a post-pandemic world should be to empower their cause by adapting to the “cashless society”.
An overlook of recent charity trends.
Why charities are struggling ?
The Covid-19 pandemic has been an eye-opener for charities around the world and not foreseeing the dramatic shift in population behaviour has been detrimental to their long term goals.
The vast majority of data suggests have the society is moving to a cash-free model of payments which has been further accelerated due to the pandemic.
Barclaycard research suggested that charities in the UK may be missing out on more than £80m in donations each year by only accepting cash donations.
• Moreover 4 in 10 people (42%) say they carry less cash now than they did 3 years ago.
• 1 in 7 people (15%) also admit to walking away from a donation opportunity at least once last year because they were unable to give using a debit or credit card.
This suggests that adapting to newer technologies means charities never lose potential donations.
Banking sector push
Historically banks have always decided consumer behaviour with regards to financial behaviour. These days banks are most definitely pushing towards cashless payments and rewarding adoption of cash-free technologies. Banks are influencing consumer behaviour by making it more expensive to transact in cash.
E.g. AIB, has a charge of €0.35 on each ATM transaction; but contactless is still free. Banks are constantly trying to optimise and reduce their overhead costs. Phasing out cash for banks means reducing operating costs substantially.
Lack of resources
An independent survey of charities across the UK found that,
72% Charities do plan to look at using contactless payment technology in the future, with a similar number saying that they believe such systems will boost their potential for fundraising.
Although 54% agreed and believe they lack the capacity to pursue such a change. Mainly due to lack of resources or the skill sets required to enable such a system.
Lack of transparency
Despite all their hard work charities must face the brunt of disgraceful actions carried out by scammers who cheat in the name of charity.
It is reported youngsters do not prefer paying charities in cash because they feel it could possibly be a scamming racket.
Having a technology solution registered to a charity gives it credibility and transparency that the money goes to who it was intended.
This takes us to an obvious question.
Do Contactless systems really work for charities or is it all hype?
The simple answer is Yes, if done right!
UN’s World Food Programme’s ‘Share the Meal’ mobile app is a shining example of a frictionless contactless system.
• The programme enabled supporters to make an on-the-spot ‘micropayment’ of 50 cents to feed a child for a day, simply by tapping on their phone.
• As of 2019 the programme has been a success and crossed £ 42 million mark.
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Enables anyone to Donate in Three easy steps!!
Scan a QR Code, Select an Amount and Confirm Payment!
Cashless Donations made easier !!
We are offering our cashless donation solution to all charities with no subscription fees to battle the economic impact of Covid 19.
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Feel free to comment and share your views on the topic.