US company CloudPay, a security mobile payment system, is shifting credit card transaction fees away from local merchants and allocating a percentage of it to a local non-profit organisation.

An account on this system can be set up within minutes using a mobile device and the user is only charged a flat fee per transaction. The users choose themselves which local agency should receive 3% of their spending amount.

A minute after a CloudPay user pays for a product or service to a participating local merchant, a message is received confirming the donation.

CEO Jon Underwood explains that CloudPay encourages people to buy-local and support non profit organisation’s campaigns.

Underwood said: "We consider money like water and are trying to get it to flow differently."

He argues the system has a positive effect on its users. ""We’re changing people’s behaviour. Once they try it, they have a smile on their face."

CloudPay aims to expand its Central Coast regional payment network, hoping to get 1,000 participating merchants over the next few years.


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