The annual Halifax Giving Monitorreview has found that cash still remains the most dominant form of donationgiving in the UK with two-thirds of charity donors using the traditionalpayment instrument despite the fact, there are a greater number of paymentoptions today. The review using internal Lloyds Banking Group customer data andconsumer research prepared on behalf of Halifax found that few people have embracedalternative payments including direct debits, standing orders, credit card and ordebit cards or some other measure.
According to the data, the studyfound that people over 65 are the most likely to donate through their bankaccount, with two fifths (40%) of customers in that age range making a donationin this way. This fact seems to contradict trends with more traditionalpayments. Most non-traditional (other than cash payments) are generally led bymillennials and younger adults that are comfortable with electronic paymentforms.
Commenting on the results of thestudy, Nick Young, Head of Halifax Current Accounts said, “With ever increasingnumbers of our customers choosing the convenience of online and mobile banking,it is surprising that many are not embracing the digital age when it comes tocharitable donations, despite being a very generous nation. Consumers clearlyprefer the convenience of donating spare cash to charities, but those who liketo make more regular donations should consider setting up a direct debit orstanding order. This will allow people to plan their donations by choosing theamount, date and regularity of when they are made and may allow the charity toclaim the tax back on the donation through gift aid”.
While the popularity and growingavailability of contactless payments should help in reducing the reliance ofcash in the charitable area, the results of the study show that thestubbornness of consumers in some particular payment types means that cash usewill continue strongly for the foreseeable future and suggestion that cash usewill completely disappear in the near future is misguided.
Overview by Tristan Hugo-Webb, Associate Director, Global Payments for Mercator Advisory Group
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