Platform offers flexible direct debit donations for credit cards
New payment model promises flexibility to match donors’ changing ability to give financially, provider says.
SIX Payment Services has launched a digital payment solution for recurring charitable donations that it claims offers a form of regular direct credit donations for credit cards.
With the new system donors can subscribe to a monthly donation of an agreed amount. The first donation is carried out using the donor’s credit card via a mobile device, potentially as a super-fast contactless transaction.
It is envisaged that at a later stage these initial payments may be made via a mobile or a tablet, SIX Payment Services said. For subsequent donations, the donor’s credit card is charged with the same amount as a recurring payment, which will be continued on a monthly basis until the donor chooses to amend or terminate the subscription.
Swiss NGO World Vision Switzerland is the first organisation to benefit from the new payment solution.
“Donors can make smaller, regular donations that work with their personal budget and can select their preferred subscription frequency. For example, donors may be hesitant to make a one-off £100 donation but might prefer to make smaller recurring donations of £10 per month which are easier to budget and financially convenient,” said Roger Niederer, Heard Merchant Services at SIX Payment Services.
“We have seen an increase in interest from charities looking to broaden the strategy and power of their campaigns to maximise donations in order to continue their work. At SIX Payment Services we care about social causes, and have sought ways to extend the reach of our services and payment solutions to actively support not-for–profit organisations.”
Niederer added: “A recent study suggests that charities see a 42% increase in yearly donations from donors who sign-up for regular recurring payments compared to donors of one-off contributions. The consistency of recurring donations helps World Vision Switzerland predict and calculate average revenues and the number of months its recurring donors continue to contribute. It will also help secure the charity’s revenue stream and decrease associated administrative and accounting costs.”