When PayPal updated its mobile app for Android and iPhone devices last month, it included a new Donate feature that lets you dispatch funds to charities at the speed of a tap. The beauty of it is that you avoid the rigmarole of most Web-based giving: Typing in name, address, phone number, credit card number and expiration date.
At the time, I was looking for a charity benefiting victims of the Pakistan floods. I didn’t find a cause in the PayPal Donate section designated for Pakistan flood relief, so I eventually donated to a Unicef drive on the Web (name, address, phone number, credit card number, and expiration date all duly entered).
But back on my iPhone, I thumbed through the charities listed on PayPal’s Donation app and munificently bestowed three $5 donations. Turns out I’m an under-giver: The average donation in the United States is $11.72, according to Laura Chambers, senior director of PayPal Mobile.
The concept behind the Donate feature is simple: little from many. Today 5 million people use PayPal Mobile, and small donations from many people could result in some serious cash. You have more than 23,000 charities and organizations to choose from.
But I wondered why PayPal couldn’t dynamically add reputable charities as needs arise, as with the Pakistan floods. The reason, I found out, is that PayPal doesn’t have much control over the charities its app displays because it uses a company called MissionFish to qualify charities and process payments. MissionFish, a non-profit organization, takes a 3.75 percent cut from each donation, Ms. Chambers says.
Charities displayed on the Donate feature are ranked by appeal and popularity. That’s why you’ll see the American Cancer Society, the American Red Cross and the ASPCA as the first three options on the screen. Fortunately, PayPal has an effective search capability that enables you to pinpoint specific types of organizations.
In the future, Chambers says that PayPal plans to be more proactive in promoting causes as need arises. As the U.S. hurricane season gets under way, that could be a very useful enhancement.