Payments

Behind PayPal’s evolution as a charitable platform

  • PayPal raised $19.6 billion in 2021 for nonprofits and causes, which is a 10% hike from 2020.
  • As of 2022, PayPal has teamed up with Chase, Wells Fargo, and RED on donations for pandemic relief globally.
close

Email a Friend

Behind PayPal’s evolution as a charitable platform

PayPal has built up a reputation as one of the top digital donation platforms. It supports and promotes 1.4 million nonprofits and causes by assisting more than 426 million consumers and merchants in over 200 markets globally.

What is Paypal’s charitable endeavor all about?

PayPal’s donation programs provide an opportunity to do personalized fundraising campaigns, where people can donate to any cause they want to be a part of.

The last couple of years have been strenuous worldwide due to the pandemic, making it difficult for many people to make ends meet. PayPal has initiated and expanded diverse ways of funding over time, to facilitate the masses in getting monetary aid, if and when needed. 

The donations can be for an individual, a friend, a family member, a community, a charitable organization, or a small business, ranging from a congratulatory life event to a travel plan, aid for a natural disaster, or help for a severe sickness.

The amount of the donation depends on what one can afford to contribute, which could be as little as $1 at the PayPal checkout.

PayPal donations have been growing rapidly, particularly during Covid-19.

Donations firing up

According to the Investor Update Q4 2021 Report released by the company:

  • The PayPal community donated $19.6 billion to nonprofits and causes in 2021, which was about a 10% hike compared to 2020.
  • Over 258 million donations were raised by PayPal shoppers alone, raising the bar by 3% in 2021.  
  • During the holiday season of 2021, PayPal facilitated $4 billion in donations – 7% more than the preceding year.
  • On Giving Tuesday, more than 1.6 million PayPal customers contributed to various causes, amounting to over 2.1 million donations that helped raise more than $188 million across 193 markets. This grand total was diffused across 160,000 nonprofits and causes in 2021.

Expansion of aims and objectives

PayPal’s reputation as a charitable platform has evolved over the years – incorporating many ways to disburse donations.

Through its Generosity Network that launched in 2020, PayPal enables customers to donate to their favorite causes globally, stretching out to the U.K., Australia, Germany,  as well as the U.S. Each of the campaigns created on the Generosity app can run for a period of 30 days and can collect up to $20,000. 

Another option to participate is through PayPal’s “donate” button that lets an individual donate straight away to a charity’s official website. 

People who are unsure about where to donate can use PayPal’s directory on its website. 

PayPal encourages users to support charities on other platforms as well. For people who want to donate to an organization on Facebook, PayPal provides the option to link its accounts with the respective Facebook fundraising platforms.

Ever since its inception in 2012, PayPal has also been raising charity on Giving Tuesday. 

In 2021, more than 1.6 million PayPal customers across 193 markets donated to various causes on Giving Tuesday. This added up to over 2.1 million donations that were directed to 160,000 nonprofits and causes. Over $188 million was processed in donations and recorded as the highest amount donated since 2012, when the Giving Tuesday campaign commenced.

Franz Paasche, chief corporate affairs officer at PayPal said, “We are inspired by the generosity of our global community of employees and customers, who came together again on Giving Tuesday this year in record numbers to use the PayPal platform to support causes close to their hearts. We’re grateful to the members of our PayPal community for all they do to support those in need around the world.”

GoFundMe also partnered with PayPal Giving Fund to allocate the offerings made using its service directly to recipients’ PayPal accounts. PayPal Giving Fund accepts donations through PayPal, eBay, and other online charity platforms.

Furthermore, another PayPal service, Pay with Rewards, provides an option for customers to donate their credit card rewards to the affiliated charitable trusts at the PayPal checkout.

In November and December 2021, PayPal also gave out a hefty cash prize of $10,000 to some of its prime customers across the U.S., U.K., Germany, and France. The goal was to give out $30 million in cash throughout these four countries. Customers who donated through the platform had the greatest chance of winning the cash prize every week.

“We know that every little bit helps, and over the next six weeks in the lead-up to the holidays, we’re excited to be giving back to our loyal customers as they navigate their holiday shopping, helping with gift purchases and donations to support causes they care about,” said Bob Rupczynski, VP of consumer marketing at PayPal. “This year’s holiday shopping season is set to be one of the biggest yet, and PayPal is here to ensure that our customers can check out safely and securely, with the added benefit of winning rewards or cash prizes to bring joy to their holiday shopping.”

As of 2022, PayPal has teamed up with Chase, Wells Fargo, and RED on donations. Due to yet another outbreak of Covid-19, RED – the organization established to fight pandemics – has partnered with Chase and Wells Fargo to build a financial alliance. Citi, American Express, and Bank of America are already a part of the affiliation to aid in providing Covid vaccine relief to the world’s most vulnerable communities and poverty-stricken countries. Customers can donate to the cause using PayPal’s “Pay with Rewards” feature.

0 comments on “Behind PayPal’s evolution as a charitable platform”

Payments, Podcasts, What's Happening in Payments Podcast

What’s Happening in Payments Ep. 7: Adyen’s Brian Dammeir on how to keep up with the shifting payments landscape

  • Brian Dammeir, president of North America at Adyen, joins host Ismail Umar on this week’s podcast.
  • He talks about his experiences at Adyen, the shift in consumer expectations across generations, and the role Adyen wants to play in the future of payments.
Ismail Umar | May 20, 2022
Finance Everywhere, Payments

Google launches digital wallet: 5 questions with Payments GM Arnold Goldberg

  • Google launched its digital wallet and virtual cards at its latest I/O developer conference, marking its first move in the payments space since the Plex project was scraped late last year.
  • Tearsheet spoke with Google's head of payments, Arnold Goldberg, about what this means for the Big Tech's journey in financial services.
Iulia Ciutina | May 13, 2022
Member Exclusive, Payments

Payments Briefing: ‘We penetrated the blue ocean opportunity of the Spanish-speaking market’ – NovoPayment’s Anabel Perez

  • This week, we take a look at Miami-based BaaS provider, NovoPayment.
  • We also discuss Bumped, a firm that rewards customers with equity in the brands they shop from.
Ismail Umar | May 12, 2022
Payments, Podcasts, What's Happening in Payments Podcast

What’s Happening in Payments Ep. 6: Quontic’s payment ring, Visa’s move into NFTs, and the new Square Stand POS system

  • This week, we discuss why Quontic Bank decided to launch a contactless payment ring.
  • We also talk about Visa's recent crypto and NFT-related activities, as well as Block's upgraded Square Stand POS system.
Ismail Umar | May 05, 2022
Payments

Rewarding shoppers with brand ownership: Bumped expands with a new browser extension

  • Bumped runs a service that rewards customers with fractional ownership of partner brands that they shop from.
  • The firm’s new browser extension notifies online shoppers every time their purchase is eligible for a stock reward.
Subboh Jaffery | April 27, 2022
More Articles