Dec 12, 2014
Mobile payments have been a big deal for nonprofits that accept donations online for the last few years. Mobile wallets allow users to store their credit card information on their smartphones, so when they purchase something online, the data is automatically entered in the form. Although this technology has been around for a few years, it's expected to take off now that Apple has created its own mobile wallet service. This could mark the beginning of a huge new trend in nonprofit payment processing.
While some think mobile wallets are primarily for m-commerce retailers, they have applications in charitable giving as well. Several payment processors started offering mobile wallets, but Google was the first to create a "donate" feature, according to Nonprofit Technology Network. The search engine giant is expected to integrate Google Wallet into Google Plus, which will enable social payments. Charities can even include a donate button through Google Wallet on their websites and YouTube channels. Additionally, Facebook is rumored to be working on its own mobile wallet feature, which would further expand the reach of this technology.
Why are mobile wallets so important for nonprofits?
Even though Google has had mobile wallet capabilities since 2011, many people are expecting Apple Pay to drive adoption of this technology. The majority of adults own a smartphone. In the first three weeks of availability, many participating retailers saw huge numbers of Apple Pay transactions, Givelify stated. This may encourage other smartphone users to adopt mobile wallets.
In the past, consumers were less likely to trust this technology because of concerns about payment security. However, with big names like Apple and Google getting involved, mobile users are becoming more trusting. In addition, Apple Pay doesn't share users' information with retailers. As the U.S. transitions to EMV cards in 2015, mobile payments are expected to become even more secure, according to eSecurity Planet.
What Google Wallet and Apple Pay can do for charities
Many payment channels you've used in the past are slowly becoming outdated. Cash and check payments are declining over time. If you host charity auctions or other events, cash and check payments may not be the most efficient option. Many attendees may mail their pledge cards in after an event, which can skew the total, Givelify said.
Online donation forms are quickly becoming the standard in the nonprofit industry because this channel is more convenient than any other. Although many people were once skeptical of the security of online giving, this channel has the highest growth potential for nonprofit organizations. However, mobile wallets can increase this convenience further. Donors don't even need to manually enter their credit or debit card information with Google Wallet or Apple Pay. This shortens the contribution process to just a few seconds.
The simpler the donation process is, the more likely people are to give, according to Nonprofit Hub. Mobile wallets allow donors to give to a cause they care about with a few taps of their fingers.