(Guest Post by Kristen Gramigna)
The world has gone plastic, at least when it comes to paying for things. PayPal recently published a prediction that consumers would fully convert to mobile payments by 2015, rendering the traditional wallet useless.
More and more people are using their smartphones to pay for just about everything. The advancements in mobile payment platforms are cropping up faster than a lot of businesses are prepared for, especially nonprofits.
Big brands give small businesses a helping hand
Since around 2009, multiple platforms and devices have hit the mobile payment market. The trouble is that, initially, nonprofits were left out of the mix. Platform providers must have seen the void in the market, because mobile options have become the newest way for nonprofits of all sizes to raise funds, host auctions, and participate in community events.
The Salvation Army is giving it a try, with a mobile version of their Family Store. And for the third year in a row, bell ringers will be using smartphones with mobile payment capabilities to accept donations this Christmas. Recent reports indicate that the organization is expected to hit their $2 billion goal without missing a step, a far cry from the 2009 totals.
Partnerships that change the way the cookie crumbles
Some nonprofits have been able to survive the mobile drought longer than others because they have an established brand, but the cumulative sting of lost sales affects even an established brand.
Before the Girl Scouts of America partnered with a mobile payment provider three years ago, their trademark cookie sales had started to decline. The reason: people just weren’t carrying cash anymore. According to the latest statistics, after introducing mobile payments, the Girl Scouts’ sales increased almost 15%, and in some areas sales increased four times over.
How mobility changes philanthropy
Organizations and donors alike are attracted by the convenience and seamlessness of the transaction. Donating is no longer a multi-step process that relies strictly on a website. Automatic alerts are set up to remind past donors to make a repeat contribution. Increased security has also made it easier for individuals to set up personal fundraiser campaigns with affiliations to larger organizations.
The Susan G. Komen Foundation has been accepting mobile donations for a while. For Komen’s 3-Day fundraising event, individual fundraisers to set up organizationally supported auction sites, and mobile payment options allowed them to easily separate donations and purchases that went toward the fundraising effort.
Nonprofits using mobile payments have had so much success that partnering organizations and platforms are now offering incentives such as free readers and reduced transaction fees. Providers are waiting to see what nonprofits come up with next. One thing is for sure: mobile pay is here to stay.
Kristen Gramigna is Chief Marketing Officer for BluePay, a credit card processing firm, and also serves on its Board of Directors. She has more than 15 years experience in the bankcard industry in direct sales, sales management and marketing.