2 min read: Open Banking payments are a great replacement for traditional card-based payment methods and are already taking off in the retail, e-commerce and banking contexts. In this post we take a look at the benefits Open Banking offers Charities and how this works in some real-world examples.
Payments made via Open Banking bring a whole host of benefits to businesses and consumers alike.
They’re cheaper, faster, and more secure than traditional card-based payment methods. Account to account (A2A) payments move money from a payer’s bank account to a payee’s bank account through the instant payment network.
Open Banking payments don’t require anyone to share their bank account or card details, which means sensitive information is better protected. They also boast strong customer authentication by design, with a process that’s smooth for the consumer and reduces the risk of chargebacks for merchants.
The future of payments for charities
When we donate to charity, we’d like to think that 100% of those funds are going to the intended cause. But, that isn’t always the case.
Traditional card-based payment methods incur card processing fees, even for charities. And, charities may have to wait a while for that cash to hit their bank account.
Then there are donation platforms that will take a percentage cut service fee, or sometimes not pay out unless the charity has hit 100% of its funding target.
Plus, not all payment providers offer donations management, so charities may need to establish a complex network of relationships to facilitate donations.
Through partnering with reputable Open Banking providers like Moneyhub charities can:
Ensure they receive 100% of the intended donation (and quickly) as the money moves directly between accounts
Reassure their donors that with encrypted credentials, official certification and security of the highest standards, their information is always safe
Reduce friction in the donation process
Remove operational barriers of dealing with multiple providers to facilitate the receipt of donations
How we’re working with Charities
Unicornfest, run in aid of Leukaemia Care UK, is Bristol’s next arts trail planned for 2023. It will involve a giant herd of unicorns, decorated by Bristol artists and schools’ creatives, displayed in prominent locations across the city to raise money and awareness for Leukaemia Care UK.
We’re powering the donation process with our Open Banking Payment technology. Each unicorn will be emblazoned with a QR code. Anyone can scan one of these QR codes to donate directly from their bank account into Leukaemia Care’s bank account without the need of a debit or credit card.
This payment method is simple, safe and secure. Plus, 100% of donations go straight to Leukaemia Care with no fees being taken, unlike other donation options.
We also use this technology to power donations to Techfugees, a UK based not-for-profit organisation who empower displaced persons with tech, providing products and education for refugees around the world.
It couldn’t be simpler: someone scans the QR code, chooses their donation amount, connects to their bank, verifies their identity (via, for example, passcode, facial recognition or fingerprint) and voila - the donation is made and the charity should receive those funds within 15 seconds.
The typical flow of this donation method on mobile
Open Banking benefits for everyone
The benefits of Open Banking payments for charities and those who wish to support them are clear. We’re so excited to harness the power of Open Banking technology to get all intended funds to these good causes.
As Open Banking grows in power and potential, we encourage more charities to take advantage of it.