One reason people hesitate to donate these days is the issue of not trusting donation organizations. Through blockchain technology, we have solved opacity by showing where the donations flow.
Cherry is a blockchain-based donation platform startup. It was established in December 2022 by CEO Lee Soo-jeong, who founded a fintech company. Lee noted, "I am someone who is sincere about donations," adding that the idea to lower barriers regarding donations led to the founding of the company while working as a fundraiser for donation organizations.
According to a survey conducted by Giving Korea in 2021 on the reasons why people in our country do not donate, 45.4% answered, "because they do not have economic means," and 33.7% replied, "because they do not trust donation organizations." "Not knowing how to donate" accounted for 5.5%.
Lee said, "While we cannot solve the economic factors, I thought that by increasing transparency with blockchain technology and enhancing fun and accessibility through photo booths and kiosks, we could reduce distrust in donations and increase interest."
Cherry's donation business is divided into three parts. The first is donations through the Cherry application. Users can download the Cherry application on their smartphones and donate to various organizations. Cherry shows where the donations flow through a four-step process: fundraising, organization, expenditure, and reporting. For example, if someone donates 100,000 won, it shows that 100,000 won flows to organization A, of which 50,000 won is spent on fees and organization A's activity costs, and 50,000 won is delivered to B, who actually needs the donation.
The second aspect is the Cherry Photo business. When a photo is taken with a four-cut photo device, 20% of the cost is automatically donated. If someone takes a four-cut photo for 5,000 won, then 1,000 won will be donated. The ability to donate naturally while taking photos is an advantage. Furthermore, the technology is designed to allow separate payments for photo costs (card deduction) and donations (donation deduction).
Lee explained, "If you just enter your phone number, it automatically connects to the National Tax Service and issues an electronic donation receipt," adding, "Currently, we are operating Cherry Photo booths at various locations, including Marriott Hotel Sejong and Hanwha Resort Geoje, and the response has been positive."
Finally, there is the Cherry Kiosk business. Donations can be conveniently made with a single touch at a kiosk. Lee mentioned, "These days, many people do not carry cash," and noted, "The ability to conveniently donate anytime and anywhere with kiosks serves as a replacement for the Salvation Army donation kettle."
Due to this convenience, the number of users donating through Cherry has reached 260,000. The total donations have exceeded 17 billion won. Over 420 donation organizations are currently conducting more than 2,300 campaigns.
The growth of Cherry has been possible due to the support of its blockchain technology. Cherry has registered eight patents related to blockchain technology, with two currently under application.
Cherry is actively pursuing overseas expansion. It is establishing branches in the United States and Spain and expanding its business in Canada and Vietnam in collaboration with local partners.
Lee stated, "Korea is not a country that donates a lot," adding, "On the other hand, countries like the United States and Canada are donation-friendly, so we plan to aggressively expand Cherry Photo overseas."