We are fast moving towards a cashless society, and for Rotary members trying to collect cash at fundraisers, that presents a major problem.
According to GlobalData’s annual Consumer Payments Insight Survey, in 2018 62% of UK consumers used a contactless card regularly at the point of sale, while as recently as 2014 only 20% of UK consumers did so.
Sam Murrant, a senior analyst in payments at GlobalData, a leading data and analytics company, said:
“Contactless card holding and usage has been on a meteoric upward trajectory in the last five years, and shows no sign of stopping.
“This change in consumer behaviour has significant implications for the role of cash in the UK because as consumers move to contactless for low-value transactions they move away from cash use.”
For Rotary clubs in Great Britain and Ireland, this presents a major challenge.
Perhaps the days of Rotary members standing outside of supermarkets with a bucket could be consigned to the history books.
Nic Abbott, from Rotary Northwich Vale Royal, works in the technology business in the fascinating field of 3D computer simulation.
And he acknowledges that Rotary clubs need to get wise to the rapidly changing landscape.
“We are living through a rapidly changing system of payments.
“We are in technological revolution and, frankly, it isn’t going to stop,” he insisted.
“I am 51 and I don’t bother with cash much anymore. I use a contactless card.
“People of the next generations below me mock me for using a card – my teenage son points out that using his phone is much more secure than card.
“Cash to him is a relic, as ridiculous as carry gold coins around is to us.”
Nic Abbott demonstrating the contactless donation system.
And so with many Rotary clubs involved in collecting money at fundraisers, or simply waving buckets for supermarket charity collections, expecting folk to part easily with their hard-earned cash is now not so simple.
At the Cheshire club, Nic has been leading the way by encouraging the use of contactless card machines.
It means, when someone says they don’t have any cash on them, they can still donate!
There are a number of contactless card machines on the market. Lisa Hunter from Rotary Maidenhead Bridge said she recently bought one for her club which cost ÂŁ22.80.
Others can cost up to ÂŁ100.
To take contactless card payments, you need to be able to connect live to the internet and have a terminal which will handle the communication with the contactless device.
How you do that can be quite varied, but Nic Abbott believes that Rotary clubs need to get their head round this.
“I have no doubt that we must come to understand these systems or suffer for it if we do not,” he suggested.
“It will not be long before we are charged for banking cash and cheques, to such a high level that the fees on contactless payments will seem insignificant.”
The contactless payment service industry is highly competitive right now, and fees keep coming down.
Rotary Northwich Vale Royal currently pays a 2.75% transaction fee.
Nic admitted that the introduction of using contactless payment has been met by the full gamut of opinions – from the club treasurer who recognises the problems with handling cash and cheques, with the need to take payments from those who don’t carry cash, to the most cynical members if they will need to give a receipt.
“Technology, it seems, is an emotive subject,” added Nic.
“It is increasingly common for people to genuinely say they have no cash. They really do not always carry it anymore.
“On several occasions, there have been reactions of relief when people are told they can donate with a card.
“It takes only a few seconds to enter the donation amount into my phone and hand them the reader for them to tap on.”
