What is TiPJAR?
TiPJAR is being described by many as the future of cashless tipping. The service has been growing in popularity after being approved by HMRC and was founded by James Brown and Alex Moore, the MD of Brewdog and founder of Rosa’s Thai. The company says it is “revolutionising the world of tipping” and “giving power to the workers”. It also says it’s helping companies to avoid the pain of handling card payment tips.
How does TiPJAR work?
If customers wish to send tips to staff via TiPJAR, they need to scan a QR code that’s linked to the specific venue. They can then make payments from their cards or via Google or Apple Pay. The tips can be paid to staff directly rather than being added to the final bill. More and more people are now experienced in using QR codes since the start of the Covid-19 pandemic, which means TiPJAR is much more likely to be used by your typical restaurant and bar customer now than it was in the past.
Key features of TiPJAR
One of the biggest advantages of TiPJAR is that it simplifies the workload of owners and managers whilst giving more control to staff. Businesses can give control of TiPJAR over to staff, which means they don’t need to deal with tax and NI admin, at least on the tips. Staff can manage the system to ensure tips are distributed more fairly and evenly. For instance, if one member of staff has worked more hours than the rest of the team, they can receive more cash.
TiPJAR say their service allows employees to earn more. Should you wish to gain a bigger insight into how TiPJAR works before you bring it into your business, you can always get in touch with the company and book a demo. The service has already won awards and accolades and could be ideal if you’re a business that deals with tips but wishes to go cashless. You can also contact the TiPJAR team if you are interested in their services but wish to find out which of their products is right for your specific needs.
A version of the service called TiPJAR Solo has been designed with sole workers in mind. These can include buskers, mobile hairdressers, online performers and street performers to give just a few examples. Public attitudes towards hospitality workers seem to have approved substantially over recent years, and TiPJAR gives customers a new, convenient way to thank them for the work that they carry out.
How much does TiPJAR cost?
TiPJAR isn’t free to use, but costs are modest. If you’re running a small business, you’ll only need to pay up to £1.99 each month. It will cost up to £25 to set everything up. Larger businesses will need to pay a maximum of £1.99 a day, and the set-up cost will be £99. Each tip incurs a 4% transaction fee, but the customer can cover this if they wish. Apparently, 98% of customers have decided to cover the transaction fee too. If you need more information about the tax and National Insurance implications of receiving tips through the service, you can find out more on the company’s FAQ page. There are no fees to worry about other than the ones already covered here.
Is TiPJAR safe and secure?
TiPJAR is designed to put “tipping back into the hands of the worker” whilst ensuring customers always know where their tips are going. The service also gives employees more visibility when it comes to seeing how tipping works.
Advantages of TiPJAR?
- More visibility for employees
- Reduced workload for employers
- Most customers cover transaction fees
Disadvantages Of TIPJAR
- Some customers still unfamiliar with QR codes
- Teams may still disagree on tip distribution
Conclusion
The team at TiPJAR claim the tipping system was “broken” before their solution went live. TiPJAR say digital tipping is the “present” rather than just the “future” and the service is apparently being used by a range of big-name brands. Credit card tip admin can be very time-consuming, and this means the service could be highly beneficial to you if you’re a business owner as well as the staff that you employ. An efficient tipping system is likely to improve morale within your business and get staff feeling more motivated and appreciated.
According to TiPJAR, the service could help you to retain and recruit the best quality staff. It may also boost team culture and harmony by delivering better transparency and building trust in your tipping system. The time freed up by switching to this tipping system could be used for improving other areas of your business. The service is described as a “peer-to-peer tipping ecosystem” by the brand, who say it takes just three seconds for a customer to leave a tip.
TiPJAR QR codes can be left in several places around your premises. Some businesses print them onto receipts, whilst others add them to posters on walls and food packaging. The company says it has a “sophisticated API”, which should mean smooth, glitch-free operation. According to the stats currently on the TiPJAR website, there are now more than 2,500 TiPJAR accounts and 135,000 users. There have been more than 170,000 TiPJAR transactions, and more than £800,000 has been given to workers as tips via the platform.
The service was first launched at the industry conference EXP101. It was given the ‘Innovation of the Year’ award at the 2020 Restaurant & Marketer Awards. High-profile brands now using TiPJAR include BrewDog, Yard Sale Pizza and Honest Burgers. TiPJAR is being used at over 750 venues across the United Kingdom.
If you’re looking for a new way to cut tip admin hours and boost morale within your workplace, TiPJAR may be the solution your business needs. It may also help you if you work individually and are seeking a smoother and more efficient way to enable customers to show their appreciation. All evidence suggests TiPJAR has a bright future ahead of it.
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