Losing Out On Tips? See How Mobile Payments Can Help

woman paying bill

Over the last year, we’ve reviewed processors like Gravity Payments, which offer excellent mobile processing options. As this type of technology continues to develop, the number of potential uses continues to expand, as well. One industry benefiting from mobile payment processing? Restaurants, food service, and other industries where employees rely on tips as part of their salary. Here, mobile payment processing has greatly advanced the ease with which payments happen – helping not only individual workers thrive, but helping entire businesses succeed.

Keep in mind: though it may not seem like tips directly impact the bottom line of certain businesses, like restaurants, happy servers translate into happy customers. That simple fact is why it makes sense for business owners to take advantage of any strategy that may help maximize tips.

How Mobile Payments Can Improve Tips

It’s no secret that people are less stingy with their money when they’re paying with anything other than cash. Whether that’s chips at a casino or credit cards at a restaurant, eliminating cash from a transaction means people are less likely to scrutinize the final amount they’re billed.

The magic of mobile payments is that you can use specific tools to garner higher tips. Offering suggested tip amounts, for example, means people can automatically tap a button to give a tip – getting rid of the extra effort (and math) needed to complete a tip. By setting an anchor, like suggesting 10 percent as the minimum tip amount, you will change the thought process around tipping, simplifying it through automation.

If you’re wondering just how effective the use of mobile payments can be, data from Square shows that once the company implemented this type of feature in their mobile payment solutions, cumulative tips increased by 133 percent year-over-year. By showing suggested tip values, the total number of transactions that included successful tips increased from 37 to over 50 percent.

Tipping behavior research shows that mobile payment solutions are even more effective when they include a human touch. For restaurants, having a server bring the tablet or mobile payment device to the table at the end of a meal could make all the difference. By being present during at least part of the transaction, an employee can stand as a physical reminder of the service they provided and increase the likelihood of receiving a good tip.

Finding the Right Mobile Payment Solution

While there’s no question that mobile payment solutions can work very well for a number of tasks, including increasing average tip amounts, it’s important to remember that different solutions can vary greatly in their effectiveness. That’s why carefully researching different providers before committing to one is a must.

If you want to learn more about available options, but aren’t sure where to start, our list of recommended credit card processing companies is an excellent resource. You’ll be able to easily compare rates and features from the top processors across the entire industry.

Posted on Tuesday, February 21st, 2017