Digital wallets account for 40% of charity donations

New figures reveal that digital wallets are now being used to make nearly four in ten one-off donations – as well as regular gifts – fuelling calls for charities to offer a wider choice of payment options to make it easier for supporters to donate, especially during the cost of living crisis.

According to the Online Donations Insights Report, the annual study next-generation digital fundraising platform goDonate, digital wallets were used to make 39% of single gifts in the past 12 months.

The report, compiled from an analysis of anonymised donations data as part of the £25m in income handled by goDonate on behalf of some of the UK’s leading charities, also reveals donations via digital wallets and cards make up 40% of regular gifts.

The key finding reflects data recently released by Barclays that confirmed the growing power of mobile wallets, with mobile contactless transactions above £100 jumping 109% during 2022, accounting for 4.1% of all contactless transactions by value.

Charities are also witnessing an increase in conversion from digital wallets through goDonate as part of online donation journeys on their website.

Meanwhile, giving to a charity in memory of a loved one has increased year on year. Of those charities that asked the donor to select their reason for giving, in-mem income accounted for 16% of all donations in 2022; an increase from 12% in 2021.

The average monthly gift is also inching up, from £9.41 in 2021to £9.79 and the overall average gift was similar for personal donations, with just a small decline from £51.95 to £50.99.

goDonate claims the findings will encourage charities during a difficult period for fundraising, and also highlight the power of payment innovations in persuading donors to make a gift.

WPNC Digital and goDonate managing director Vicky Reeves said: “Digital wallets have become a big portion of one-off and monthly giving, so it’s vital that charities invest in offering a choice of payment options within donor journeys.

“Innovation is clearly playing a key part in fundraising strategies. goDonate is at the forefront of payment technology innovation, offering all options to donors including the latest digital wallets.”