5 Reasons to Avoid Using Peer-to-Peer Apps for Hotel Tipping - youtip
5 Reasons to Avoid Using Peer-to-Peer Apps for Hotel Tipping

5 Reasons to Avoid Using Peer-to-Peer Apps for Hotel Tipping

The tenacity and commitment of hoteliers and everybody working in the hospitality industry shouldn’t be underrated. If you work in hospitality and tourism areas, then you’ll agree that this was one of the most heavily hit sectors of the economy during the pandemic. From layoffs, pay cuts to time reduction, workers in this industry seriously felt the pandemic’s wrath.

Now that the industry is opening and guests are increasingly returning, the simplest high-impact thing you can do is provide them with an easy hotel tipping process. This will not only offer hassle-free tipping for your guests but also come as a reward to the unsung heroes (workers) of the hospitality industry. And one of the ways hoteliers are doing this is by leveraging digital payments.

Cashless Tipping Experience

youtip cashless tipping


Contactless payments were already buzzing pre-Covid-19 but the pandemic has accelerated adoption, and usage has truly skyrocketed. It is estimated that this year, digital payments are going to hit a record of 6.6 trillion U.S. dollars, amounting to a 40 percent increase in just two years, thanks to Covid-19. 

And what this means is that even post-Covid-19, people are going to embrace contactless payment to stay safe and better manage their money. It’s a changed status quo, and more businesses are already enjoying the convenience of digital tipping.

Some hoteliers are now using peer-to-peer payment apps such as Venmo in a move to accommodate the cashless society. But payment processing platform apps such as PayPal are not the most convenient to users, especially in tipping. From downloading and installing, activation steps, and linking to a bank account to verification processes, we can confidently say that peer-to-peer apps are clunky and inconvenient.

Furthermore, 25% of users were found to be abandoning apps after just a single use. To avoid problems in your hotel operations, here are five more reasons why you need to avoid using peer-to-peer apps, especially when it comes to hotel tipping:

Longer Transfer Times

Peer-to-peer payment options are not convenient in tipping as your employees may need to be patient for longer periods due to their tendency to delay. And we all know how humans can be impatient, particularly in matters concerning money.

PayPal, for instance, takes a couple of days before your payments can reflect in the bank. It may even take up to five business days, depending on how fast your specific bank initiates the transaction.

Missed Opportunity to Reward Outstanding Employees

Peer-to-peer payment apps don’t have an easy in-built review system that you can use to get customers’ feedback. Your manager, therefore, misses the opportunity to know who’s doing a great job and reward them for the commendable effort as a part of an employee motivation campaign.

You also miss a great opportunity to learn from your blind spots, make changes, and subsequently improve customers’ satisfaction. The beauty of reviews is that they always provide room for improvement.

Fraud and Insecurity

Another serious concern that has been raised about peer-to-peer payment apps is the risk of fraud to which it exposes its users. With these peer-to-peer payment apps that display networks of friend and family,  such as Venmo, you’re highly able to fall victim to cybercrime and social engineering scams than being robbed in the streets. And did you know that 1 in 10 adults around the globe has fallen victim to cybercrime before?

By linking these apps to your bank accounts, credit or debit cards, you usually expose your financial data to serious cyber risks. Worse during the pandemic, you must have heard or seen in the news horrible stories of people being scammed or conned of their money, all falling victims of online fraud or cybercrime.

Or perhaps, you’ve heard uproars of sudden disappearances of funds without any explanation in these peer-to-peer payment apps. It would help if you surely didn’t expose your guests and employees to these extreme risks.

Risks of Privacy Infringement

Another safety concern is about the privacy of personal information. Personal data such as purchasing history, email, or your location may be violated. Through some mobile apps, your private and personal information may become exposed to millions of web users. For example, Venmo will automatically link to your Facebook and phone contacts, and also lets you make publicly viewable transactions.

Poor Guest Experience

It may seem weird to a guest to use a non-hotel branded platform to tip someone for their service if they’re required to use peer-to-peer payment apps. This can come off as unprofessional, and it can give the guest a simple excuse not to tip because they don’t have that specific account, or they may not want to bother downloading the app.

In addition to that, it may even appear awkward to guests to request account details from workers or ask for an alternative way to tip workers. Essentially, this will result in lost money to the workers.

So, What’s a Safer Digital Tipping Alternative Than the Peer-to-Peer Apps?

youtip phone scanning QR code

A digital tipping solution, youtip, designed for hotels, is the best solution now and in the future, for guests to leave their tips and employees to receive them seamlessly. youtip is a quick and simple platform where you just scan a QR code, tap an amount, tip, and you’re done. It is a digital tipping platform that is contactless/cashless, faster, and safer than peer-to-peer payment apps.

This user-friendly platform requires no app download and the subsequent inconvenient app hassles. Instead, it uses the customer’s phone camera technology to leverage the tipping process conveniently. It’s surely a no-brainer solution to seamlessly ease tipping for your guests and keep your workers satisfied by meeting their expectations.

The Bottom Line for Hotel Tipping

More travelers are becoming increasingly wary of tipping hotel employees for their services in the ever-growing cashless economy via peer-to-peer apps like Venmo or PayPal. It’s unprofessional, and it exposes personal information to strangers. You, therefore, need youtip now more than ever. Contact us today to learn how to launch youtip for your hotel at an absolutely free cost in 2021!

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