Charities could be missing out on £80 million per year, by not accepting card donations.
Barclaycard research revealed 15% of people walked away from a donation opportunity last year because they were unable to donate via card. These statistics are backed up by 42% of UK consumers saying they carry less cash today than they did three years ago. Barclaycard predicts only 27% of transactions will be made with cash by 2025, with debit card payments overtaking cash in 2021.
At the end of last year, Barclaycard conducted a trial with 11 charities, including Barnardos, NSPCC, Oxfam and RNLI, providing them with portable donation boxes which accepted Chip & PIN and contactless payments.
Barclaycard partners Payworks, Sprout and Miura developed 100 portable payment boxes and the trial began in September 2016, lasting two months. In that time the charities took more than £20,000 in donations. While the trial has now ended, some charities are still using the boxes.
"In today’s world there are more ways to pay than ever before. The donation boxes that we trialled enable charities to tap into these new options, raising more money no matter how their donors choose to give – whether that’s with cash, through a mobile device or by using a debit or credit card," said Paulette Rowe, MD of Barclaycard Payment Solutions. "Feedback from the trial has been extremely positive; our charity partners told us the boxes were simple to use, adaptable to a variety of situations and vital in securing donations where it may not have been possible before. We are proud to use our payments expertise once again to open up more opportunities for fundraising, and are excited to work with the charities to help them adapt the technology to best suit their needs."
Chris Allwood, head of product development at the Charities Aid Foundation, added: "People in the UK donate around £10 billion to charity every year. However, a rapidly growing number of them can no longer make donations on the street when they feel inspired to do so because they have stopped carrying cash. This makes it vital that charities are able to accept payment by debit and credit card."