What is Cashless Tipping?
An Overview on How Cashless Tipping Impacts Businesses
Today, it is no longer unusual for businesses to change workplace requirements and how they operate. Technological advancements and business disruptions keep impacting how we operate and conduct business. Like in the current scenario, the Covid-19 pandemic has significantly affected almost the entire business setting.
And despite witnessing several convenient and contactless operational ways, we saw the necessity and resurgence of contactless management during this pandemic. Now more than before, customers are happy and attracted to businesses that put in measures to ensure their health and safety amid the ongoing pandemic. And one of the measures that businesses, especially those in service industries, are implementing to ensure the safety of their customers is cashless tipping.
Of course, cashless payments were already buzzing even before the Covid-19 pandemic struck. But one thing’s for sure, contactless and frictionless options like cashless tipping have never been more critical today than in the past (considering the ravaging effects of Covid-19).
In this post, we will look at what cashless tipping is and how it is impacting businesses. Let’s get started!
So, what is cashless tipping?
Like the name suggests, cashless tipping is simply the process of tipping without the use of physical cash. In other words, customers and clients don’t have to carry money so they can tip. But instead, tipping is done via cashless means such as credit cards, debit cards, apps, QR codes, or any other form that does not require physical cash.
As you would agree, we’re living in a digital era and cashless tipping echoes with the digital sense. With today’s digital and tech-savvy consumers, a cashless tipping solution would cut it for many businesses. It goes without saying that due to the spread of Covid-19, even your employees, customers, and clients would prefer cashless transactions.
Why businesses are implementing cashless tipping solutions
In the past, when tipping, one would usually leave a few dollars on their table, let’s say in a restaurant. Or rather, they would have to hand over the tip money to the staff physically. Today, that is no longer the status, and it’s even ill-advised. Businesses currently deem that to be old-fashioned and marred with inconveniences. Instead, they love and use cashless tipping options, which are more frictionless, contactless, and convenient for customers.
For instance, hotels are placing QR codes in their guest rooms, staff badges, menus, among other relevant and easily visible points. Guests now prefer to scan a QR code, tap an amount, tip, and go without the risks of having to touch cash. This also encourages guests to leave their tips even as more and more people are carrying no cash. After all, it makes sense to recognize and show gratitude to employees who are currently working in the face of the Covid-19 risks and its uncertainties.
Other than gratitude, here are more reasons why businesses are using cashless tipping:
- To maintain health and safety: It is no lie that since Covid-19 erupted, health and safety have been a top priority for businesses. Cashless tipping provides a contactless experience for both employees and customers, thus ensuring safety against the risks of handling cash. Furthermore, it reduces the chances of fraud by removing the need to carry cash to the bank or home for businesses and their employees.
- High-end convenience: Without any doubt, customers love convenience; they value their experience even more than the prices. And that explains why businesses such as Starbucks have already embraced cashless tipping. In 2014, the coffee giant allowed their customers to tip employees with the convenience of digital payments, and their customers loved it! Other businesses are also bringing their tipping practices up to speed with cashless tipping, such as providing QR codes that can be scanned instantly.
- Increased tips: By going cashless, businesses are witnessing a rise in the amount of tipped money. Customers are no longer limited to tipping according to the amount of cash in their pockets. Moreover, with the reduced friction and time relished by cashless tipping, customers are more likely to tip higher amounts in appreciation of the hard-working employees (bearing in mind the risks they face).
- Valuable insights. With cashless tipping, you know which employees earned tips and also learn when reviews are posted. This gives businesses insights on how to improve their customers’ experiences and also provides constructive feedback to the employees about their service delivery.
What is at risk if a business doesn’t adopt cashless tipping?
Cashless payment is not an entirely new concept to the business world. However, with the increasing digital advancements, cashless tipping is now becoming typical. Something to remember is that even established businesses like Starbucks and Uber also didn’t offer cashless tipping at some point in time. But due to the demand, Uber, for instance, adopted cashless tipping in 2017 to assist their drivers to earn more money.
What this means is that if you’re reluctant to adopt cashless tipping, you stand to lose more money that would otherwise go into the pockets of your employees, increasing their productivity. It could also lead to a high turnover rate due to dissatisfaction of your employees. Even worse is that you stand to lose your most prized asset, customers, since you’ll not be providing them with safer payment options amid fear of catching the coronavirus. In essence, you wouldn’t want that to happen.
So, what’s the solution?
At this time, it would only make sense if you provided innovative solutions that ensure the health and safety of both your workforce and customers. A contactless and cashless tipping solution is your answer, particularly today when the business world is rapidly moving from traditional payments into digital transactions. So, regardless of your industry, this will go a long way in improving customer experience, meeting employees’ expectations, and consequently getting more business. If you’re ready to go contactless and cashless with tipping, then youtip is here to help. Feel free to contact us to learn how easily you can get started with cashless tipping today.