A Guide to Modern Payment Processing for Charity Fundraisers

Phil Ingram
Sep 21
5 min read

The landscape of charitable giving has undergone a fundamental transformation. Digital payment processing is no longer a peripheral option but a core component of any successful fundraising strategy. Digital donations now constitute over 85% of payment methods, and organisations that embrace a digital-first approach are growing 12.7% faster than their counterparts. With mobile giving alone accounting for more than half of all online donations in 2024, fundraisers must navigate this evolving ecosystem to maximise their impact.

This guide synthesises key research to provide a clear overview of modern payment processing solutions, helping charity fundraisers make informed decisions in a global and technologically diverse environment.

The Global Shift to Digital Giving

The move towards digital transactions is a worldwide phenomenon, underscored by several key trends. While credit cards remain the dominant preference for donors at 65%, mobile wallets like Apple Pay and Google Pay are rapidly gaining ground, accounting for 6% and 3% of donations, respectively. Since 2019, overall online giving has increased by 42%, with giving via smartphones accounting for 28% of that total. This data highlights the critical need for fundraising strategies to be mobile-optimised and platform-diverse.

Selecting a Global Payment Processing Platform

Choosing the right payment processing for charity fundraisers is foundational. Most operate on transaction-based fee models, typically around 2.9% + $0.30 per transaction, though many offer discounted rates for non-profits. Some platforms even operate on a donor-funded or "tipping" model, which can significantly reduce costs.

Here are some of the top-tier global platforms:

Stripe: Ideal for organisations with a global reach, Stripe is available in over 195 countries and offers advanced fraud protection and multi-currency support.
PayPal: Leveraging strong global brand recognition, PayPal is available in over 200 markets and provides eligible non-profits with reduced transaction fees of 1.99% + $0.49.
Givebutter: This platform offers a comprehensive, free fundraising solution that includes events and peer-to-peer campaigns, with costs covered by optional donor tips. Research shows that donors opt to cover the fees 95% of the time on such platforms.
Donorbox: A strong choice for international fundraising, Donorbox supports over 30 countries and multiple currencies, featuring recurring donations and donor management tools.

A World of Difference: Regional Payment Preferences

A one-size-fits-all approach to payment processing is ineffective. Donor behaviour and available technology vary significantly by region.

North America

Credit and debit cards are the preferred method for 65% of donors, with PayPal following at 25%. Emerging trends include "Buy Now, Pay Later" (BNPL) options for pledges and high adoption rates for text-to-give campaigns, which see response rates of up to 45%.

United Kingdom & Europe

Contactless payments are dominant in the UK and are expected to account for 94% of transactions by 2032. QR code adoption for donations has grown significantly since the pandemic. Across Europe, SEPA Instant Payments enable real-time euro transfers, and strict GDPR compliance for data protection is a critical consideration for all processors.

Asia-Pacific

This region has the highest adoption of mobile payments globally, making a mobile-first approach essential. QR codes are a standard and ubiquitous payment method. Engagement with Chinese donors requires integration with WeChat Pay and Alipay, while GrabPay is popular in Southeast Asia, and PayNow is Singapore's instant payment system.

Key Technologies Shaping Modern Fundraising

Beyond standard platforms, several technologies are creating new opportunities for fundraisers.

QR Codes & Mobile Wallets: QR codes offer a simple, hardware-free way to collect donations at events, on merchandise, or in community spaces. Integrating mobile wallets like Apple Pay and Google Pay streamlines the giving process, reducing friction for donors.
Cryptocurrency Donations: A growing number of charities now accept crypto, which offers tax advantages to donors and results in average gift sizes 300% higher than cash donations.
Buy Now, Pay Later (BNPL): Primarily available in the US and Australia, BNPL allows donors to pledge larger amounts paid in instalments, increasing the average gift from $128 to $470.
Artificial Intelligence and Blockchain: AI is being used to predict optimal donation asks, enhance personalisation, and prevent fraud. Blockchain technology offers a path to greater transparency through immutable donation tracking and automated fund release via smart contracts.

Security and Compliance: A Non-Negotiable Foundation

Trust is the currency of charity. Robust security and compliance are therefore essential.

PCI DSS Compliance: Any organisation processing credit cards must adhere to the Payment Card Industry Data Security Standard (PCI DSS). Most non-profits fall under Level 3 or 4, which requires partnering with certified processors and conducting regular security assessments.
Data Protection Regulations: Handling donor data requires strict adherence to regulations like Europe's GDPR, which mandates explicit consent and provides donors with rights over their data. Similar laws exist in other regions, such as California (CCPA) and Canada (PIPEDA).
Fraud Prevention: A multi-layered defence is crucial, incorporating CVV and address verification, two-factor authentication, and setting minimum donation amounts to discourage card testing. AI-powered systems can provide real-time monitoring and behavioural analysis to detect suspicious activity.

Event Management and On-Site Engagement with meed

While a robust payment processor handles the financial transaction, the overall success of a fundraising event also hinges on the attendee experience, from ticketing to on-site engagement. This is where a platform like meed can complement your payment strategy.

The research highlights the power of simple, frictionless digital tools, such as QR codes and mobile wallets.

meed is a cloud-based platform built around this principle, offering an "app-less" experience that removes barriers for attendees. For fundraisers, this translates into several practical benefits:

Digital Event Passes: meed can issue digital tickets and event passes directly to an attendee's Apple or Google Wallet. This simplifies check-in and provides a professional, modern experience without forcing guests to download a dedicated event app—a common point of frustration for consumers.
Seamless On-Site Interaction: At the event, QR codes can be used to create a variety of engagement points. Attendees can scan a code to join a post-event mailing list, receive a thank-you voucher from a sponsor, or access event information, all through meed's single, unified web interface.
Enhanced Sponsor Value: Charities can offer greater value to corporate sponsors by using meed for activation. A sponsor could, for example, issue a digital voucher for their product or service to every attendee, creating a direct and measurable connection. This fosters the kind of B2B collaboration that can strengthen fundraising partnerships.

By integrating a sophisticated payment processor for donations with a streamlined platform like meed for ticketing and engagement, organisations can create a holistic and practical fundraising event that is seamless for donors, attendees, and sponsors alike.