Consumers are increasingly relying on credit cards and digital payment systems over cash. One of the side effects of that is that people often don’t have cash on hand for tips. But now there’s a new app that aims to remedy that.
TipEasy is an app that lets you send and receive cashless tips using your Android phone or iPhone. Both individuals and companies can sign up to use the platform.
When you first open the app, the screen shows a list of those nearby who accept tips with the platform. So if you just interacted with a valet or doorman but didn’t have cash on hand, you can send a quick tip directly afterward. But users can also specifically search for a person or business by name.
For businesses and service providers, you can either sign up as an individual or a company. And companies can then add their employees to the network so customers can send tips to the proper person. To sign up, the platform requires some basic business and tax info. And TipEasy approves those who meet all the requirements and standards.
Recently, some businesses have moved away from gratuity-based systems. But tipping doesn’t just provide certain workers with additional income. It can also provide incentive for improving service since customers often base their tip’s amount on the level of service received.
For that reason, TipEasy doesn’t just serve as a payment platform. It also provides a way for customers to leave ratings for the businesses and service providers they tip. Mike Kassin, founder of TipEasy, said in a phone interview with Small Business Trends:
“Gratuity is centered around service. So we wanted to make sure that the app gave people a way to reward great service, and not just reward them financially but also offer them ways to improve or let them know they’re doing well.”
The app also gives service providers options for collecting service fees. For example, a hair stylist could set different prices for services like men’s haircuts and women’s haircuts. Then they can use the app to collect those fees separately from their tips.
Currently, the app charges 1% per transaction on top of the standard credit card processing fees. But there’s no other charge to use the app. So for small businesses that don’t have the resources of big chains like Starbucks, who can develop their own apps or systems for cashless tips, it’s a fairly inexpensive option.
Tip Photo via Shutterstock, Screenshot via TipEasy