UK digital bank Monzo has teamed up with The Big Issue magazine to trial a scheme aimed at tackling poverty through increased sales.
The Pay It Forward initiative will enable people who have bought a copy of the publication to re-sell it to friends or family once they have read it via a QR code on the front.
The Big Issue is a social enterprise tackling homelessness, poverty and inequality in the UK by offering people the opportunity to earn a legitimate income by selling a magazine to the public.
The group’s marketing and communications director Lara McCullagh said: “The people who buy The Big Issue aren’t just readers, they’re often vocal champions of our mission.
“This fantastic new scheme, in partnership with Monzo, gives them a way to further support their local vendor by selling the magazine on to friends and family, and offers those same vendors the opportunity to grow their income and their customer base.”
How the Pay It Forward scheme will help Big Issue magazine sellers
There are currently about 5,000 people sleeping rough in the UK, and more than 300,000 who are homeless, according to housing charity Shelter.
Vendors of The Big Issue are able to generate income for both themselves and the magazine’s charity foundation by selling issues to the public – but as cash use has declined recently in favour of digital payments, direct sales have become more difficult.
Pay It Forward allows those who have bought a copy to become sellers themselves, by getting a friend to scan a QR code on the front page with their smartphone, which arranges a fresh purchase via Monzo’s payments platform.
Each new £2.50 fee is split into two, with half going to the initial verified Big Issue seller, and the other going to the foundation itself.
If new buyers choose to spend more, £1.25 goes to the charity and the rest is given to the vendors – who are also given Monzo bank accounts to help them manage their income, and become more financially independent and economically integrated.
Benefits of Monzo’s partnership with The Big Issue magazine
Aaron Dunn, a Big Issue vendor in London, said: “It is great because you get to earn extra money on top of the sales you make of the magazine.
“You never know how far it is going to go. One of my magazines has already been passed around over 20 times.”
The digital bank is particularly suitable for this situation because it does not require account holders to have a fixed address – just somewhere the payment card can be sent.
Monzo’s vulnerability specialist Lew Isaacs said: “In the last ten years, the number of cash payments has halved.
“And although paying by card is convenient, the falling use of cash has real consequences for people in poverty and organisations like The Big Issue.
“We hope Pay It Forward will help grow the earnings of Big Issue sellers when readers pass the magazine onto their friends.
“Our goal is to give more vulnerable people access to financial services, and help The Big Issue continue its crucial work.”
This preliminary trial will run for four weeks, and involves up to 20 vendors across the UK in regions including London, Nottingham, Middlesbrough and Edinburgh.
Celebrities like Gary Lineker, Roger Daltrey and Vincent Kompany have given their support to promote the scheme and its ambitions.
Monzo says the project forms part of its broader commitment to improving financial inclusion in the UK, with its “NoBarriersToBanking” campaign addressing issues such as access to current accounts, financial literacy and making banking simpler to understand.
