Mobile Payments: The Future of Crowdfunding

In today’s digital society, fundraising has come a long way since the door-to-door sales pitch with a plastic bag of money in hand.

Innovative platforms have allowed anyone to take fundraising into their own hands and raise money for a cause close to them, kicking off the trend that is now known as crowdfunding. The crowdfunding platforms are user friendly, but their transaction capabilities mean that fundraisers are unable to raise donations for their favourite cause without having a significant amount taken off the top. 

Crowdfunding platforms can charge anywhere from 5 to 15 percent to host funding campaigns and some don’t even allow users to donate to personal causes. The platforms can restrict users that are organizing a fundraising campaign with high fees for processing. Some claim that no crowdfunding sites are 100 percent free and fees always exist when accepting payments online.

However, mobile payment platforms are changing the game. These innovative services allow users to help raise money by using peer-to-peer transactions services to crowdfund for whatever cause they involve themselves with, in a simple and transparent way.

With cash donations now practically obsolete, mobile payment platforms provide a quick and easy way to request and collect funds. Participating in the Ride to Conquer Cancer, and looking for donations from friends to help your ride make a difference? Consumers using certain mobile payment solutions, such as Vancouver-based platform nTrust, can send money to your account without incurring any administrative fees. Growing out your moustache for Movember? Family and friends can send money straight to your mobile payment account, and you can send 100 percent of the donations towards prostate cancer research.

Using the mobile payment method, consumers have the ability to donate to any cause – personal or registered charity. Most platforms operate under a give-and-take mandate, where consumers can also instantly transfer to a fellow user in need via peer-to-peer transfer services.

The process is simple and instant, and puts the control of the crowdfunding campaign fully in the user’s hands. Consumers can raise money at the click of a button using their mobile application, and platforms often make the process even easier by including features that allow users to connect their mobile contacts to the platform to send out text or email alerts encouraging them to send money to the cause.

When compared to alternative crowdfunding sites that take a portion of your donations for website administration fees, collecting the full donation amount through peer-to-peer transactions make mobile payment platforms a great alternative.