U.K. fintech ties unused incentives to coronavirus digital donations
For Good Causes has emerged from pilot in the U.K. to help consumers and businesses convert loyalty rewards points to digital cash donations for charities impacted by the coronavirus pandemic.
The company was co-founded in 2016 by Crispin Rogers who had previously been a senior vice president of loyalty and merchant analytics at Visa Europe and is now the CEO. For Good Causes aims to monetize the £7 billion (about $8.6 billion) worth of unused loyalty and rewards points in the U.K. for the benefit of raising digital donations for charities. For Good Causes claims that U.K. charities are forecasting a 48% decline in donations despite a 43% increase in demand for services due to the coronavirus pandemic.
“On average we have around 6 loyalty cards each in the U.K. and more than half of us don’t use all our points and rewards. This means over £7bn worth of unused rewards are sitting around doing nothing, whilst millions more are being earned every day. Imagine if we could recycle just some of that value and turn it into a force for good, helping U.K. charities continue their amazing work,” said Crispin Rogers, co-founder and CEO of For Good Causes in a press release.
The For Good Causes platform is a charitable payments ecosystem that connects retailers and brands with more than 20,000 registered U.K. charities, enabling millions of consumers to convert their unused rewards into digital cash donations. The company has set a goal of raising £500 million (about $615 million) for U.K. charities in the next five years and plans to expand internationally where its goal is to raise £5 billion (about $6.15 billion) over the next 10 years.
Joining the For Good Causes national launch are businesses including gasoline retailer BP, with over 1,200 stations across the U.K., online shopping mall and media streaming service Rakuten, and the Koin Rewards App with brands such as Neals Yard and Able & Cole.
The new national launch partners are joining pilot charter retailers such as Vodafone, Quidco and Pure Planet. For Good Causes reported that during its pilot phase Vodafone customers have donated their rewards on its platform to more than 1,750 different U.K. charities which is a demonstration that by offering consumers a wide choice and easy digital cash conversion process it can generate a new income for charities.
“In these uncertain times, charities need our support more than ever. By joining forces with For Good Causes, we can encourage Rakuten members to stay generous and make a big difference by redeeming their Rakuten Points at Rakuten.co.uk in exchange for a donation to the charities they care about most passionately,” said Toby Otsuka, CEO of Rakuten Europe in a press release.
According to Crunchbase, a website that tracks investments in private companies, For Good Causes has raised £1 million (about $1,25 million) in funding over three rounds of seed, venture and equity crowdfunding since 2017. Crowdcube was used for the equity crowdfunding round in 2017.