Donating to charities and causes is going to become a lot easier for Facebook users after new changes were announced by the social networking site this week.
Facebook is moving into an industry that is dominated by GoFundMe and PayPal and now the company has announced initiatives such as fundraising stickers on Facebook Stories, and the option to add donate buttons to video game streaming accounts and Instagram business.
The big guns, PayPal and GoFundMe are currently charging users 30cents for every donation, and a 2.9% processing fee. Where PayPal will allow a lower charge of 2.2% on payment processing for nonprofits, Facebook has completely waived the fee for any type of donation.
It is working well for the charitable causes too – they are seeing a rise in donors through the Facebook initiatives. In 2018 PayPal was used by over 55 million people who made donations to nonprofits a total of $9.6billion. In 2010, $5billion was raised through GoFundMe. Since 2015 Facebook has been instrumental in raising $2billion for nonprofits.
Facebook’s influence in digital payments is growing and this is likely to increase alongside its initiatives to help people fund non-profits. The platform is keen to encourage groups and private messaging and incorporating donations and, while it will not provide a financial gain, it will encourage users to continue engaging with each other through Facebook.
Facebook CEO Mark Zuckerberg announced in May that he was looking to encourage more group conversations on the platform and groups would be a more central part of the platform's app. The ability of a group to promote a cause and collect funds will assist him in this goal.