Dipping Into the World of Electronic Tipping
As technology for credit cards and near-field communication (NFC) evolves, people are steadily moving further and further away from using cash to pay for things. While being able to pay for everything with your card or smartphone may be convenient, it often leaves you with less cash in your pocket, much to the dismay of many workers whose pay relies on the tips they receive. Quite often, this can lead to an awkward tipping situation in establishments that only have cash tip jars. Restaurant staff, baristas, valets, hairdressers and barbers, and many other people in service industries have seen a decline in tips they receive as non-cash transactions have been on the rise.
This is where a new device called DipJar comes in. DipJar is essentially an electronic tip jar that businesses can add to their counters to allow convenient payment of tips using credit cards. The makers of DipJar aim to improve business computer services to make leaving a tip via an electronic transaction as easy and as common as a cash tip. The company’s studies have found that customers who pay a bill with cash tend to tip with cash, whereas customers who pay with their credit card tend not to tip at all in many locations. The hope is that adding an electronic tip jar to the counter will lead to an increase in the number of tips workers receive.
The system is simple; it is essentially a conveniently placed card reader. Each DipJar will have a dollar amount emblazoned on the front of it, and each time a card is dipped into the tip jar a tip will be charged for that amount. As soon as you leave your tip, a loud sound plays so you know (and everyone else around you knows) that you have successfully left a tip. For those worried about card security, the DipJar automatically encrypts credit card information immediately when you dip your card. Additionally, the jar does not store any data longer than the time it takes to transmit to the company’s servers. DipJar focuses on simplicity and ease of use in order to allow for convenient tipping, even without cash.
DipJar already has an IT support plan in place to adapt with new forms of payment. Considering NFC, the company has already sought out the trademark for “TapJar”. The team behind DipJar is constantly working on hardware improvements and gathering data about the DipJar’s effectiveness from the businesses already making use of it. Still testing the device at several businesses, the company is currently working out a pricing plan to make the product available to organizations everywhere. If you are one of the many people who have had that guilty feeling when you wanted to leave a good tip but had no cash, the DipJar is something to keep an eye on.
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Filed under: startups, Uncategorized