How Open Banking powered QR code payments with automated Gift Aid from Moneyhub helped raise £12,000 at the Schroders UK 2020 Platform Awards virtual awards dinner, to tackle homelessness.
Schroders is a world-class asset manager operating from 35 locations across Europe, the Americas, Asia, the Middle East and Africa. The Schroders UK Platform Awards is one of the largest and most important events in the platform calendar, and by far the longest running. The event was held online on 15th December 2020, making it the 14th annual ceremony.
Challenge
2020 was a difficult year for charities. Not only have large fundraising events been postponed or cancelled, but social distancing and the demise of cash have also made charity canvassing harder. This has meant that charities have struggled to generate income at a time when help is needed more than ever.
In September 2020, Moneyhub launched the world’s first Open Banking powered QR code payments with Gift Aid, specifically to benefit charities. The Open Banking payment technology is triggered when the QR code is scanned with a smartphone, or a link clicked on a website. This enables users to easily make a donation to a charity through Moneyhub’s Open Banking Payment API, which can only be accessed and initiated with the donor’s consent. UK-based donors can pay directly from their bank account to the charity’s account without using a credit or debit card, and avoiding the complexity of setting up payments in their online banking app.
Now that fewer people are carrying cash, scanning a QR code on the side of a collection bucket, a bus stop poster or Big Issue Magazine means instant, cash-free transactions. The payment uses the same Faster Payments infrastructure as common bank transfers, meaning it’s fast and safe, with the huge added bonus of being a lot more cost efficient - and in Schroder’s case, free. Moneyhub can reduce payment fees by 90% compared to card transaction fees, meaning every pound donated can go a lot further.
The benefits to charities are endless:
No more credit/debit card fees, or platform fees (such as when donations are taken through Just Giving or similar)
No need to spend on Point Of Sale (POS) PIN pads or contactless card readers
Instant bank-to-bank payments appear in the charity’s bank account straight away, improving cash flow
Charitable donations are boosted by 25% Gift Aid - automatically
Schroders UK wanted to harness the benefits of this technology at their 2020 Platform Awards on the 15th December, to raise money for their chosen charity Providence Row, a charity that is tackling the root causes of homelessness. Due to the ongoing pandemic, the awards ceremony was to be held online - meaning simple, rapid payments were vital to encourage donations. Most attendees would attend the event on a computer - so picking up a smartphone and scanning a code on screen represented an easy user journey, with no need to navigate away from the event itself through another on-screen window - potentially missing the action. For those who couldn’t scan the code, a clickable link was available, allowing users to donate via desktop.
Solution
Moneyhub worked with Schroders on the project, creating a specific QR code for the Schroders UK Platform Awards website and publicised throughout the event. The payment journey is simple: the user opens the camera on their smartphone and hovers over the QR code to initiate the Open Banking payment journey.
With match funding from Schroders, the total amount raised for Providence Row at the event was just under £12,000, with £3,000 as the biggest single donation. Moneyhub is leaving the service running for a year to allow Providence Row to continue to benefit at future events.
Card-based donation platforms such as Go Fund Me, Just Giving or similar could see Providence Row losing as much as 9% of the total donation amount to fees (dependent on platform), but with Moneyhub’s QR code payments, Providence Row keeps 100% of the donation.
“UK-based donors can pay directly from their bank account to the charity’s account without using a credit or debit card, and avoiding the complexity of setting up payments in their online banking app. ”
With the rapid pace of digital transformation that has occurred in response to the pandemic, the likelihood is that this won’t take long - soon, QR code charity donations will likely be a common sight at bus stops, petrol stations and posters on the London Underground. With micro-donations now cost effective, and the ability to provide individualised financial experiences, it is possible to make donations much more personalised. We expect to see micro-donations where people automatically donate based on personalised rules - for example, every time they buy a coffee, an equal donation could be made to their favourite charity.
Convenience is the biggest driver to positive behaviours - and finance is no different. Moneyhub’s technology means payments can be made faster, more securely and at a lower cost. With cost and unnecessary friction reduced, payments become something that happens as part of an experience, rather than as a distraction to it. This means it’s easier than ever for people to save for their future or donate to charities they care about. As we look forward, it really feels as if we’re at the start of a payment revolution - and the future of payments starts here.