A Cape Town study conducted by &Innovation has shown that locally-developed mobile payment Apps can influence the tips paid by customers to waitrons, the speed of the payment method making customers feel less guilty when they leave a smaller or no tip. Based on restaurant turnover of R21 billion per year, the value of tips should be R2 billion.
The study found that the tip payment behaviour when paying by means of SnapScan, FlickPay, GUST Pay, and Zapper differs from payment made by cash or credit card. Whichever payment technique is easiest and most convenient for the customer at the moment of payment is used, without consideration of the impact it may have on the restaurant or coffee shop, and its staff. The mobile payment method means that they don’t ‘look the waiter or cashier in the eye’. It also means that the tip jar remains untouched.
If the payment App prompts a tip, customers are likely to add a tip. If they are prompted to pay more than 10% for better than average service, the tips tend to increase.
The study warns that if customers do not tip, the cost of food and drinks offered by restaurants/coffee shops will have to increase, to make up for the shortfall. However, a tip is a voluntary payment, and should not affect staff income nor restaurant/coffee shop pricing!
Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.com Tel (021) 433-2100, Twitter:@WhaleCottage Facebook: click here
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The sooner all restaurant staff are paid a sensible living wage and the whole system of tipping is abolished, the better
I absolutely agree Stuart!
Hi there, that’s a really interesting study! We know it’s important for us to encourage tipping via the app, so we offer the option for patrons to add tips of 10%, 15% or 20%. If you’ve come across any merchant that needs tipping activated on their account, or there’s someone you think we should get in touch with, please let us know on help@snapscan.co.za? 🙂
Thank you, I will do so.