By John Reynolds on Friday 18 September 2020
Open Banking Excellence (OBE) has teamed up with payment API provider Moneyhub and Streeva, the gift aid company on the initiative.
An initiative has been launched which utilises Open Banking to help make charity donations quicker and easier.
Open Banking Excellence (OBE), a community of Open Banking proponents including fintechs, has teamed up with payment API provider Moneyhub and Streeva, the gift aid company on the initiative.
The initiative works by allowing charity donations to be made by scanning a QR code with a phone to pay directly from one bank account to a charity’s bank account, with an automated gift aid function, so charities can claim an extra 25 per cent on each donation.
The initiative has been launched amidst coronavirus which has undermined the ability of the third sector to raise funds due to social distancing, lockdown and a general demise of cash.
Moneyhub created a QR code which will be available on OBE’s website, supporting four charities: MyBnk (financial education charity), SSAFA (armed forces charity), EACH (East Anglia’s Children Hospices) and Bristol Inclusive Thrill Seekers (adventure sports charity).
Once the QR code has been scanned with a smartphone, it prompts the user to pick a charity and donation amount. UK donors can then pay directly from their bank account to the charity’s bank account.
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, the 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."