Insights
Technology is helping Big Issue sellers tackle an increasingly cashless society and changing employment trends
The earning potential of Big Issue sellers amid an increasingly cashless society is being transformed through contactless payment technology. Since 2023, a pilot has been taken place among Big Issue sellers aimed at seeing how smart phone technology can increase their earnings.
After showing considerable successes in improving their lives, the tech is being rolled out nationwide. In addition, it is being expanded further to help the unemployed find long-term work. Here we look at how the technology is being used to support Big Issue sellers.
The Big Issue is a magazine with a difference. It launched in 1991, and its street sellers are micro-businesses, who make £2 from every sale of the £4 magazine. During the Christmas period they can make more money with the festive issue costing slightly more and giving sellers extra profit.
Sellers are those impacted by poverty and housing problems. Some will be homeless or at risk of becoming homeless while others are among the long-term unemployed or in need of extra money to avoid falling into debt.
It is run by social enterprise Big Issue Group.
Traditionally vendors would be paid by customers in cash, but in an increasingly cashless society they need help to ensure they receive payments via mobile phones and bank debit cards.
This is especially needed given there were 17 billion contactless payments made in 2022, up from just four billion the previous year, according to UK Finance. It also found that nine in ten people make contactless payments at least once a month.
To help meet this changing focus away from cash the Big Issue teamed up with technology firm giffgaff in 2023 for a pilot that saw 250 vendors handed specially developed refurbished phones. This pilot became the Big Issue’s first every phone partnership with a mobile network.
The phones are equipped with near field communication technology, which allows vendors to take cashless payments directly via a smartphone from customers’ phones or bank cards, without the need for an additional card reader.
Evaluation of the pilot early on found that vendors sold five more magazines each week on average, adding up to £520 a year in extra earnings.
Due to the success of the pilot late in 2024 the Big Issue Group extended its partnership with giffgaff in a deal that aims to roll out the devices to every vendor in the UK. The group estimates the predicted uplift in sales could be worth a combined £468,000 to vendors by 2027.
Big Issue Managing Director Russell Blackman added that the mobile phones roll out will “strengthen our means of communication between vendors and our support teams, allowing our vendors to access our services much easier”.
Among vendors using the devices is London-based Dorina. “Being cashless is good,” she said. “I used to have a card reader, but it broke in the rain. Now I can just use my phone, my customers touch (their cards) on my phone and that’s it.”
The expansion of the partnership will also see giffgaff support Big Issue Recruit, which the group started two years ago to help people facing barriers to long term work.
In its first year of operation this scheme helped 109 people find work by supporting them with job applications, interviews and finding training programmes
This delivered an estimated £755,000 in social value through factors such as paying taxes, reducing benefits, and improving people’s health and wellbeing.
From 2024 giffgaff has been supporting this further by providing 400 Big Issue Recruit jobseekers with phones to support their job search. Smartphones are especially needed as applications and training increasingly move online.
In addition, giffgaff will be providing funding to help Big Issue sellers and those facing unemployment to improve their digital skills and confidence.
“Connectivity plays a key role in unlocking access to opportunity, so we will provide smartphones and funding to boost digital skills and confidence to play our part in helping people break the cycle of poverty, empowering them to achieve their potential,” said giffgaff Chief Executive Ash Schofield.
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