How Digital Wallet Donations Make Giving Easy

Digital wallets are an easy, secure, and private way to pay online and in-app with mobile devices, making it as fast as possible to give donations. Organizations can also enable digital wallet donations for in-person events, so donors can give with just a tap of their smart device. From getting groceries to buying a new couch, digital wallets are used to make purchases everyday. In fact, there are 507 million Apple Pay users worldwide. 

What are digital wallets?

Digital wallets are software programs on personal electronic devices that allow users to make financial transactions. These programs store payment information, such as credit card details or bank account numbers and enable users to pay quickly using smartphones, smartwatches, or other devices, providing a quick and easy way for people to make transactions without the need for cash, checks, or credit cards.

How you can use digital wallets for donations

Digital wallets have surged in popularity, with 53% of Americans using them more frequently than traditional payment methods. They offer a fast and convenient way to pay for purchases without the need for cash or physical cards. By simplifying transactions, digital wallets can be a great tool when collecting donations. 

Your organization can add digital wallet donation options by accepting digital wallets, such as Apple Pay, Venmo, PayPal, and others, on their online fundraising platform based on the platform’s requirements. This allows your donors to give to your cause with a few clicks of a button, without taking out their credit card or filling out too many form fields. 

4 reasons to accept digital wallet donations 

Digital wallets are becoming more and more common with the advancement of technology, and it’s something your nonprofit can take advantage of as well. Here are four reasons why your nonprofit should accept donations via digital wallet: 

1. Increase in digital wallet usage 

It’s no secret that there’s been a growing increase in the use of digital wallets in America. Because of COVID-19 and the need for contactless payments, mobile wallet debit transactions in the United States skyrocketed by over 50% in 2020. Apple Pay accounted for 92% of all of these transactions, gaining over 66 million new users that year alone. In the U.S., over 85% of retailers accept Apple Pay. 

Accepting digital wallet donations may also help your organization reach a younger audience, as Millenials and Gen Z have the highest usage rates of digital wallets. It’s important for nonprofits like yours to stay on top of technology that can help you raise more money for your cause, and many nonprofits have already adopted the use of digital wallets, with 6% of online donations made through Apple Pay. With the growth of digital wallets, accepting donations via digital wallets helps you do just that. 

2. Ease of use

Digital wallets are easy for donors to use and can actually increase the number of people donating to your organization because of how convenient it is. Studies show that the less steps a nonprofit has to complete a donation, the more people will donate. A study from NextAfter shows that adding even one extra required field in donation forms can lead up to a 42.6% decrease in donations. 

With digital wallets, your donors can eliminate the need to fill in their credit card information with the click of a button. This speeds up the donation process and could help you grow your donation conversion rate by 2%. On average, only 19% of the people who visit a website’s main donation page end up completing a donation. Digital wallets can also speed up the process for in-person donations, as there’s no need for donors to take out their wallets, making it convenient for both your donors and your nonprofit. 

3. Enhanced security

According to a Forbes survey, 36% of respondents believe digital wallets are safer than traditional payment methods, making them a trusted choice for online transactions. Digital wallets have advanced security measures like tokenization to protect users’ information. Tokenization replaces sensitive payment details with a unique identifier or “token” to ensure that your donors’ card numbers aren’t directly shared. This process masks payment details to make your donors’ donations much more secure and reduces the risk of fraud.

Digital wallets often require biometric authentication, such as fingerprint or facial recognition, which adds an extra layer of security. Biometric data is unique to each individual, making it exceedingly difficult for unauthorized users to gain access. Some digital wallets also utilize additional security protocols, such as two-factor authentication (2FA) and encryption, to safeguard your donors’ information, providing multiple barriers to protect your donors’ data.

4. Trust with donors

Security goes hand-in-hand with trust. When your donors know their payment information is safe, they’re more likely to contribute to your cause. Digital wallets also provide detailed transaction histories which provides another place for your donors to track their contributions, showing them where their donations are going. 

The transparency and reliability of digital wallet transactions can significantly boost donor confidence, as well as the name recognition of major digital wallets that your donors are already familiar with and trust. This level of trust from donors can be a major factor when your organization is building and maintaining your donor base. By leveraging the transparent and trusted nature of digital wallets, your nonprofit can create an environment that encourages ongoing support and engagement from their donors.

Types of digital wallets for donations

There are several digital wallets that you can integrate into your donation platform. Here are a few types of digital wallets you can accept donations with:

Apple Pay

Apple Pay is a widely recognized digital wallet that offers seamless integration with Apple devices. It can allow your donors to make secure payments with a single touch, providing a frictionless donation experience. By incorporating Apple Pay, you can tap into a vast user base and increase your organization’s reach and potential donations.

PayPal

PayPal is one of the most popular digital wallets globally! It provides robust security features and a simple user interface, as well as name recognition, making it a favorite digital wallet amongst donors. By accepting PayPal donations, you can leverage its extensive network and trusted reputation to provide an easy donating experience.

Venmo

Venmo is especially popular among younger generations of donors. This digital wallet allows others to see and share their transactions with friends which can help boost visibility for your cause. By utilizing Venmo donations, you can engage a younger donor base and foster a  community eager to share their contributions to your mission.

Other digital wallets for donations

While Apple Pay, PayPal, and Venmo are among the most popular, there are other digital wallets worth considering that also offer quick and secure transactions for the benefit of your nonprofit. Exploring multiple digital wallet options ensures that you cater to a broader audience, increasing the chances of receiving donations.

Final thoughts 

Digital wallets are transforming the way transactions are handled by offering unparalleled convenience and security. For the nonprofit world, integrating digital wallet donations can boost donor trust, streamline the donation process, and ultimately increase contributions to important causes.

Don’t miss out on this opportunity to modernize your fundraising efforts! Start accepting digital wallet donations today and make giving easier for your supporters.

Additional resources

For more information, use these additional resources:

• Raise More in 2024: Nonprofit Fundraising Trends, Tips, and Tools. Check out this guide to fundraising trends to learn more ways to boost your fundraising!
• Qgiv and Candid Integration Expedites Apple Pay Approval. Learn how you can expedite the Apple Pay approval process using Qgiv’s integration with Candid. 
• The Future Of Nonprofit Fundraising In Human Services: Embracing Next-Gen Payment Options To Attract And Retain Next-Gen Donors. Attract the next generation of donors using digital wallets using these tips!