Contactless Payment Systems Hurting Charity in the UK

File this one under “unexpected consequences”. A new report from Consumer Intelligence took a look at panhandling in the United Kingdom, and discovered that UK giving is down, mainly because so many users have taken to contactless payment systems that they just plain don’t have spare change on them any more.

That was the case for 37 percent of respondents—almost two out of every five—who responded to the Consumer Intelligence survey. It’s not that they’ve stopped, but rather that giving is down. Down about 14 pounds sterling—about $18.47 US as of this writing—over the last year, in fact.

That’s a problem not just for panhandlers but also for charities in general. Word from the UK Charities Aid Foundation says that cash is the most popular means of making donations, with cash and coin accounting for 55 percent of donations period.

Ian Hughes, chief executive with Consumer Intelligence, noted “Contactless is convenient and secure so it is understandable that so many are happy to ditch cash. But there must be some concern that it is hurting charities with so many people admitting they have cut donations simply because they do not carry cash.”

It’s not because they’re less inclined to give, or simply less able to give from job loss or pay cuts. It’s that they just don’t have pocket change any more in growing numbers. As a society grows increasingly cashless, it doesn’t have cash to give out any more. However, this is a point that should be noted: China is possibly closer to a cashless society than even the UK, and its panhandlers have actually already adapted, offering up quick response (QR) codes worn on badges or on clothing. While it will take a little doing to coordinate, you’d think that it wouldn’t be hard to set up something like that everywhere else.

British charities seem to be taking this point to heart, as reports note they’re already working on programs where donation points offer QR codes and the like for easy donation. Sometimes, technological changes force societal changes, and this is one of those points. It seems like the lag won’t be too pronounced, though,