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Digital wallets now account for almost half of one-off online donations

Melanie May | 6 April 2022 | News

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Donating via digital wallets is now almost as popular as making a gift using Direct Debit or credit card, according to a new study.

The goDonate Online Donations Report 2022 is based on analysis of online donations made through the goDonate platform in 2021, totalling more than £30 million.

It shows that donors’ use of digital wallets – including PayPal, Apple Pay and Google Pay – has significantly increased year-on-year. According to its figures, digital wallets now account for a fifth of monthly online donation payments, and nearly half (43%) of all one-off donations made online.

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The number of one-off Apple Pay donations increased by 60% compared to 2020. GooglePay, although a smaller share of the transactions, also jumped by 45% compared to 2020.

This is across all devices including desktop. The report notes that the usage of digital wallets is much higher when looking at mobile donations.

In addition, the use of digital wallets (where offered) for regular giving is also rising, while monthly donations via Direct Debit are declining. The latter accounted for 65% of online donation transactions in 2020, while use of digital wallets shows year-on-year growth.

Overall, the study also found the average one-off donation value increased by 7% in the past year to £51.97.

Vicky Reeves, Managing Director goDonate, said:

“The use of digital wallets for donations continues to significantly rise, showing users are increasingly turning to their phones and are more comfortable using digital wallets for payments.

 

“It is now more vital than ever that charities offer these choices of payment within their donation journeys for both one-off donations and for monthly gifts.

 

“Another key observation is that the average gift amount a supporter donates has increased since 2020 – a promising sign of the UK population’s generosity, despite ongoing hardships.”

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