Launch of world’s first QR code-based Open Banking payments with automated Gift Aid to support charity donations
Open Banking Excellence (OBE), the world’s leading community of Open Banking and Open Finance pioneers, has joined forces with Moneyhub Enterprise and Streeva to take open banking-powered charity donations mainstream.
OBE has partnered with some of the best in the industry to introduce a new method for donations in the UK through scanning a QR code with a phone to pay directly from one bank account to the charity’s bank account and offers automated Gift Aid, which enables charities to claim an extra 25% on each donation.
Moneyhub, the award-winning Open Finance data, intelligence, and payment API provider that brings Open Banking to businesses within and outside of financial services, has joined forces with Streeva, creator of Swiftaid – a Gift Aid solution helping to reduce the half a billion pounds missed each year in unclaimed Gift Aid by fully automating the current onerous process. This new way of giving uses Open Banking technology and offers huge operational and cost efficiencies.
COVID-19 has dented the ability of the third sector to raise funds due to social distancing, lockdown and a general demise of cash. The challenge has never been greater than now. Moneyhub created a QR code which will be available on OBE’s website for anyone looking to support one of 4 available charities: MyBnk, SSAFA, EACH, and Bristol Inclusive Thrill Seekers, a charity supported by and local to Moneyhub.
Once the QR code has been scanned with a smartphone, it prompts users to choose a charity and the donation amount. 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.
Swiftaid automates Gift Aid, a UK tax benefit, which boosts charitable donations by 25%. With Moneyhub’s Open Banking payment API, these charities will not have to pay credit and debit card-related transaction fees, nor need to rent or buy POS card readers.
All this helps charities make the most of each donation.
Samantha Seaton, CEO of Moneyhub, said: “Open Banking and Open Finance are transforming the way consumers interact and manage their finances, and revolutionising how we pay. Half of UK shoppers have not used cash since lockdown began, highlighting the move towards a cashless society. All companies, no matter if large or small, are now easily able to leverage the power of Open Finance and benefit from faster, more dynamic, and incredibly cost-effective payments.
“We are proud that our collaboration with Streeva and OBE means that charities in particular benefit from QR code payments, initiated through our Payment API. Open banking eradicates interchange fees and turns a common smartphone into a payment device. It can minimise donation leakage whilst also increasing donations as it is so quick and easy. It is imperative that those who rely on cash payments, such as charities, adapt to survive.”
David Michael, co-founder and CEO of Streeva, said: “It’s been a pleasure to be involved with this initiative and to work alongside great partners, Moneyhub and Open Banking Excellence. Helping charities gain more through the use of new innovations and technologies at a time that is needed more than ever. I believe that with the right collaborations, we can make a huge difference to the charity sector.”
Helen Child, founder of OBE, said: “We believe in commercial karma. As an industry community with a powerful tool like Open Banking, we felt compelled to create new channels to generate crucial funds. I was touched and proud to see talented people coming together to work on this powerful initiative, helping Open Banking payments become ubiquitous.
“We all read and talk about collaboration. For the Open Banking sector to truly trailblaze and grow I believe collaboration must be our key watchword. The partners have walked the walk, working together to shine a light on the immense talent we have within our community.”