Apple Pay and Google Pay and Venmo...Oh My!

Screech! Stop right there, with misconception number one. Apple Pay and Google Pay and Venmo are not payment methods. Misconception number two? They’re not even payment gateways. So what are they? 

They are buzzworthy, super cool ways of making it easier for donors to give (or for you to go to the grocery store or pay your friend back for half of dinner). And they’re not all the same.  

CharityEngine lives in the payment processing world, and we’re always announcing big news about our capabilities. And our clients often ask us about the big three “payment processors” mentioned above, and about how soon they can get those buttons on their websites. We’re here to simplify what these are and give you a hint about when our clients can see them (and why they might want to). 

Let's take a look at Apple Pay, Google Pay, and Venmo and share some thoughts that might help you take advantage of convenience but also keep your donor experience optimal.

Apple Pay for Nonprofits 

You likely know that Apple Pay allows you, as a consumer, to tap your phone on a screen to pay a bill. You can also choose Apple Pay as an option at checkout when you’re shopping online. 

But there's an Apple Pay conundrum.

Nonprofits are adept at finding ways to make giving easy and are often focused on turning one-time donors into sustainers. When this includes accepting Apple Pay for those monthly gifts, you’re delivering convenience to your donors, but based on how Apple Pay operates, you’re running into three issues.

1. Tokenization Challenges: Apple Pay uses unique tokens that change every time a device is changed or the credit card is updated. This is terrific for security, but makes it challenging for a system to recognize recurring donations from the same person.
2. Limited Visibility: When Apple Pay is used, payment processors like CharityEngine have little to no visibility into the raw credit card data. In a traditional credit card donation, we have access to the information and can assist with issues that arise, such as updating payment information.
3. Incompatibility with CAU: When Apple Pay is used for recurring donations, it’s incompatible with helpful tools that assist in more traditional transactions. An example is automated credit card updaters (CAU). These significantly increase the amount of revenue your nonprofit receives, and they cannot be used when Apple Pay is the payment method.

The Impact on Nonprofits

Not using CAU will impact your revenue. But what are some other side effects of offering this convenience to your donors?

Nonprofits can experience higher decline rates due to the changing tokens and a payment processor’s limited visibility into raw credit card data.

If a payment is declined, nonprofits may struggle to reactivate the donor, as they can’t charge them until new payment information is collected. This, in turn, lowers your donor retention rates, which in turn reduces your overall fundraising revenue.

When nonprofit teams are required to contact donors for updated payment information manually, this can increase the administrative burden and the possibility of human error.

Every payment declined or donor who drops means a revenue loss, and these losses can multiply quickly and affect your ability to hit your fundraising goals.

Despite these significant challenges, some nonprofits still want to offer the convenience of Apple Pay for recurring gifts. Rightly so, they believe that an easy donor experience leads to more monthly giving signups, and they’d rather focus on mitigating the risk than losing potential donors.

If this describes your nonprofit’s philosophy, let’s examine some of the best strategies for mitigating the risk of offering Apple Pay for recurring donations.

1. Focus on sustainer reactivation: Use email automation to send declined donors a link to sign up again. However, don’t offer Apple Pay as an option, so they opt for more traditional credit card or ACH options.
2. Educate your donors: While you can offer Apple Pay, clearly communicate the risk of declines to your donors. Remind them of your mission and the importance of ongoing support, and encourage them to consider a different payment option if possible. Sometimes, donors choose the easy and familiar Apple logo without realizing the potential consequences!
3. Monitor decline rates: Watch your decline rates with Apple Pay (watch your decline rates regardless!) and keep a close eye on the number of donors signing up versus the declines. If you're a CharityEngine customer, we're watching them for you. Be prepared to shift strategies if offering Apple Pay is hurting your revenue.
4. Keep traditional options in focus: If you want to keep Apple Pay, ensure traditional payment options are prominent on your donation form. Consider offering only credit card and ACH payments for recurring donations and allowing Apple Pay for one-time donations.

Just don't let convenience cost too much. It’s hard to argue with the convenience of Apple Pay and virtual wallets in general, as they are perfect for different types of transactions. Accepting Apple Pay in a shopping cart for a one-time purchase makes a lot of sense and creates an easy donor experience.

Google Pay for Nonprofits

Let's broaden our focus to include Google Pay as well.  If your donation page offers ACH payments, credit card, Apple Pay, or Google Pay as giving options, you’re giving donors plenty of options and (we say it all the time) making it easy to give. Just remember:

• ACH payments, or direct bank transfers, are a payment method.
• Credit cards are a payment method.
• A check you get in the mail or cash dropped in a bucket are payment methods. 

Apple and Google are offering virtual wallets.

These well-known, trust-inspiring companies help you submit your payment info quickly, all with the click of a button. When a donor clicks, the information from their credit card or bank account comes into CharityEngine if that's your payment processor), and then it’s processed just like any other transaction.  

The payment method is still a bank account or credit card. The payment processor is still CharityEngine. Apple Pay and Google Pay offer a convenient way for donors to donate without entering their account information. 

Finally, here's how we answer two common questions from our clients. 

• Can I track how these buttons are used, like I can with a credit card or ACH payment? Yup, we’re all about data, and Apple Pay and Google Pay transactions will be marked accordingly. So nonprofits will be able to look at a dashboard and see how often these buttons are being used and the funds that have been raised using them. 
• What are some best practices for these options? It’s important that you offer line-item details, so a donor's statement reads “$50 donation” instead of just “Google Pay.” As always, you can make it even easier to give if you offer predetermined payment options so donors can check a box (or they have the option to enter an amount manually).
  CharityEngine will have a website page detailing onboarding and best practices, so you’ll have a lot of guidance moving forward. 

Venmo for Nonprofits  

You might see Venmo buttons on nonprofit donation pages. Venmo, owned by PayPal, swooped onto the scene and offered peer-to-peer payments without any fees. So, any smart charity might think, why don’t we accept Venmo transactions and not have to pay any fees for donations? 

Venmo/PayPal caught on pretty quickly, as you might assume they would. According to Venmo rules, nonprofits must now create a charity profile, and donations accepted there will be subject to fees.  

Still, Venmo is worth considering, especially if you find yourself with younger donors. With millions of users and seamless mobile integration, Venmo offers a familiar and low-friction way to give. Although it may not be free of fees, familiarity can still boost donor engagement and drive smaller donations.

But don't just slap a Venmo (or Apple Pay or Google Pay) button on your website. Integrate it into your overall strategy by placing it on social media, your donation forms, and on peer-to-peer sites. And always make sure everything is optimized for mobile!

Smart Giving Starts Behind the Scenes

Donor convenience matters, but not at the expense of nonprofit success. Apple Pay, Google Pay, and Venmo are loved by donors for their speed and simplicity. But behind the scenes, nonprofits must be thoughtful about how these tools impact recurring revenue, donor retention, and internal workflows. 

The key is to prioritize backend reliability over a flashy payment experience. Keep your eyes on the data, and choose a platform (like CharityEngine!) that will help you balance innovation with stability, because you can have both.