Mobile payments refer to
transactions that are completed via a portable gadget like a smartphone or a
tablet. In this regard, mobile tipping means using an online tipping platform
to tip workers.
Concerning hotel technology,
E tip is advantageous because customers will no longer be obliged to use
traditional methods like cash or credit cards.
As the majority of guests
will arrive with some portable device, it only makes sense that this payment
category is rapidly becoming a staple within different industries.
Let's briefly examine some
of the benefits of cashless tipping via a tipping platform to gain a better
understanding of why this approach should be adopted.
The decrease of tips in the form of cash
Fewer individuals nowadays
possess physical currency than ever before. The decline in cash utilization is
a pattern that has gradually gained popularity over the previous decade as
individuals became more dependent on debit cards and online transactions.
Then the COVID 19 pandemic
emerged, and consumers didn't even desire to utilize cards any longer since
they necessitate the physical insertion into a credit card reader that then
must be touched with fingers or a stylus.
Additionally, the
utilization of cards still typically involves close proximity to other
potentially contagious individuals.
For these reasons,
cash-carrying plummeted to an unprecedented low, and individuals became much
more intrigued by touchless payments and cashless tipping.
How does E tip operate within different industries?
Although the technology
behind mobile tipping is slightly intricate, the reality is that its principles
are rather straightforward.
Initially, a terminal
equipped for contactless payments will be necessary. This is commonly situated
at a typical point-of-sale (POS) station.
The customer will then
position his or her mobile device within two inches of the terminal. Once the
device is detected, the transaction process will commence.
Detailed and encoded payment
information is exchanged between the two devices; the process usually takes a
few seconds to finalize.
Assuming that the
transaction is acknowledged, the individual is prompted to provide proof of
identification via a fingerprint scan or by entering a PIN code (depending on
the device and/or terminal).
The transaction is
authorized, allowing the guest to confirm the reservation and gain access to a
specific room.
On the other hand, customers
can use tip apps to show their gratitude. For example, Tipsy is an excellent
digital tipping application that assists you in giving a gratuity via your
smartphone and expressing your gratitude for exceptional service.
Read More: Countries where you should always tip
Why
staff require a mobile tipping solution?
Quite evidently, the
significant decrease in cash-carrying has consistently added pressure on
employees who traditionally depend on those gratuities to enhance their
earnings.
Many individuals, including
cleaning personnel and other types of employees were especially affected by
these advancements, as their gratuities are typically not incorporated in a
larger transaction that can be done with a card or contactless payment solution
such as Apple Pay (for instance, when a customer settles their bill after a meal).
In simple terms, a decrease
in the amount of money that customers have on hand resulted in workers
receiving fewer gratuities.
This issue became even more
serious when the pandemic caused businesses worldwide to temporarily close,
putting thousands of people in a more financially vulnerable position.
As the world gradually
returned to a new normal and people began going out and use facilities, employers
worldwide needed to find ways to help their employees increase their earnings.
Online tipping platforms that
can be conveniently utilized through smartphones and QR codes make it
significantly easier for guests to give tips and for staff to receive digital
payments. This effectively addresses the problem caused by guests carrying less
cash.
Why should employers incorporate E tips?
The epidemic brought about
an unprecedented shortage of personnel in the hospitality industry as numerous
employees, confronted with financial difficulties, sought jobs elsewhere.
For example, drawing in and
retaining personnel, particularly housekeepers, has become one of the utmost
concerns and obstacles for hotel proprietors, operators, and management teams.
One method of enhancing
employee allure and retention would be to raise salaries and hourly pay rates.
Nevertheless, this isn't truly viable for numerous hotels in the present
economic climate, which is rampant with inflation and concerns of an imminent
economic downturn.
Why do customers need to practice cashless
tipping?
Simply because individuals
carry less cash today, doesn't imply they're any less inclined to express their
gratitude to hospitality workers who offer them with exceptional services.
In reality, many
contemporary consumers are greatly inconvenienced when they wish to leave a
gratuity but discover themselves in a circumstance where they cannot.
Offering a digital solution
as an alternative at a hotel or other accommodation establishment is an
excellent method to enhance the guest experience, as it spares individuals from
an uncomfortable moment or sensation in which they cannot demonstrate the
complete extent of their gratitude.
The benefits of mobile tipping within the hospitality
industry
There is no question that E
tips are here to stay. We have already witnessed that they provide a safe and
convenient way to finalize a transaction within moments.
However, there is more than
meets the eye when it comes to their widespread use. It is, therefore,
advisable to take a closer look at benefits that your establishment can
anticipate.
Increased levels of customer satisfaction
One of the main factors in
achieving a favorable reputation within any industry is customer satisfaction.
customers who are provided
with the latest technological amenities are much more likely to feel that their
individual needs are always taken care of.
This is especially important
when it comes to the convenience offered by mobile tipping platforms. Happy
guests are more inclined to leave positive feedback online, which in turn can
lead to higher booking rates for your establishment.
Fast and secure
As mentioned before, cashless
tipping is highly efficient and offers a high level of security compared to
traditional methods.
Banks and financial
institutions often use the same encryption standards for everyday transactions.
As a result, guests can feel confident that their personal information will
always remain protected.
Tailor-made customer loyalty programs
Many businesses can
integrate personalized customer loyalty schemes into their mobile payment
platforms. This could take the form of credits or comparable rewards for
end-users.
Some typical instances
include reduced rates for those opting to upgrade their accommodations,
advanced check-in alternatives, special offers at an on-site restaurant, or
even the opportunity to join local sightseeing tours without incurring any
additional expenses.
The significance of sanitation
Given the recent COVID-19
outbreak, cleanliness holds greater importance for customers than ever before.
E tip helps guarantee a
heightened level of cleanliness and safety.
Increased frequency of gratuity
Sometimes, it can be unclear
to patrons whether or not it is customary to leave a gratuity. However, with
the utilization of a tip app, which employ strategically positioned QR codes
throughout a property, there is never any uncertainty when it comes to
welcoming gratuities.
Moreover, mobile tipping
empowers guests to determine precisely how much they wish to tip.
This implies that they are
not constrained by the limitations of cash (for instance, if one only has a $20
bill, they may not desire to leave the entire amount).
The ease of selecting a
specific amount to tip results in individuals being more inclined to do so.
Providing managers with a convenient and
cost-effective method to offer a human resources perk to hotel staff
The greatest advantage of an
online platform dedicated to tipping is its ease and affordability of
implementation.
There is minimal additional
documentation, no need for faxing, and no unnecessary stress. Furthermore, it
is an economical employee benefit that enables staff members to receive the
gratuities they are entitled to.
Read More: How should we give tips in hotels?
Versatile deployment
Any online tipping platform worth
its weight in gold will seamlessly incorporate with a property’s current
technology stack. Furthermore, it won’t merely be presented as a standalone
solution.
A reliable tip app will be
accessible as a component of a comprehensive Guest Management System while
remaining a distinct tool that can be detached from the system.
This business owners to
select precisely how they desire mobile gratuity to function in conjunction
with their other technologies.
Conclusion
Mobile tipping is indeed one
of the top remedies business owners have to assist in increasing employee
allure, retention, and overall contentment. It also is one of the (if not the
sole) most feasible remedies for addressing the issue of consumers carrying
less cash, and yet still residing in a society in which many hospitality
workers are still dependent on gratuities as a substantial part of their
income.
Forward-thinking employers
should embrace these remedies as a part of the greater necessity to meet
consumer behavior where it is and modernize their technology systems.
Those that do position
themselves for a promising future are those that do not risk losing even more
employees and bearing the challenges of remaining analog in a digital-first
world.