Nuapay partners to cut cost of charitable donations

Open Banking provider Nuapay is partnering with payments startup Felloh! to reduce the cost of payments processing for charities and social enterprises.

The collaboration aims to transfer £1 billion in reduced payment processing costs to donations for charities and social enterprises.

The partnership enables social enterprise Felloh!, set up by a group of furloughed entrepreneurs, to launch its Open Banking payments button.

The new solution will enable consumers to donate to charities, with over half of beta testers finding it easier to use than PayPal.

In 2019 alone, the UK’s total e-commerce market reached £233 billion, of which £2.33 billion was lost in processing costs and card fees (using a conservative estimate of 1 per cent of total transaction value).

In 2018 £10.1 billion was given to charities in the UK, meaning an estimated £101 million was lost in fees and costs instead of contributing to charitable services.

Felloh!’s new solution, facilitated by Nuapay’s Open Banking platform, will charge charities 80 per cent less than other online donation platforms, with Spotlight on Africa one of the first charities to benefit from the button.

A £50 donation made on the Felloh! website incurs a 25p processing cost, in contrast to the incumbent fundraising websites, which charge £1.15 on the same donation to cover payment processing.

Charities can also opt to have GiftAid automatically calculated in a HMRC-friendly presentation.

Nick Raper, head of UK at Nuapay, said: “The work Felloh! is doing will go a long way in demonstrating the capabilities of open banking platforms while revolutionising the way charities are able to accept donations.”

Itself a social enterprise, once Felloh! has covered its own costs it will give a minimum of 50 per cent of profits to charitable causes.

Robin Bradley, trustee of Spotlight on Africa, said: “Working with Felloh! means for every £30 donation we save transaction costs that can provide an extra three meals to the children we support in Uganda - we are also excited about a new source of donations via their payment button with retailers and delighted to be one of their earliest partners.”

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