UK residents can now make charity donations using an open banking payments service that allows them to transfer money directly from their bank account to a charity’s bank account by scanning a QR code with their mobile phone, reducing the recipient’s processing costs and automatically enabling Gift Aid tax benefits on each donation.
Users access the new service via the Open Banking Excellence (OBE) community’s website where, after scanning a QR code, they can choose to donate to one of four UK charities: MyBnk, SSAFA, EACH and Bristol Inclusive Thrill Seekers.
“Once the QR code has been scanned with a smartphone, it prompts users to choose a charity and the donation amount,” explains OBE.
“UK-based donors can then pay directly from their bank account to the charity’s account without the complexity of setting up payments in their online banking app.
“Thanks to Moneyhub’s Open Banking technology that powers it, the payment is instant, using the same Faster Payments infrastructure as for common bank transfers.
“The technology means that “charities will not have to pay credit and debit card-related transaction fees, nor need to rent or buy POS card readers.”
The integration of Streeva’s Swiftaid solution also ensures that charities automatically receive Gift Aid, the UK tax benefit that boosts charitable donations from UK tax payers by 25%.
“Open banking eradicates interchange fees and turns a common smartphone into a payment device,” Moneyhub’s Samantha Seaton adds. “It can minimise donation leakage whilst also increasing donations as it is so quick and easy.”