Future of customer service: how cashless tips will benefit company ?

Published March 31, 2023

cashless tips

Are you tired of fumbling with loose change or waiting for a server to bring you a receipt to add a tip? Well, good news, because cashless tips are becoming more prevalent in the hospitality industry, and they're set to change the way we show appreciation for excellent service.

In this article, we'll explore what cashless tips are, why they're becoming popular, and how they're impacting the industry. We'll also examine the pros and cons of cashless tipping and discuss how servers can best adapt to this new trend.

What Are Cashless Tips?

Cashless tips are gratuities given electronically rather than in cash. Instead of leaving cash on the table or adding a tip to a receipt, customers can now use their credit or debit cards to tip their servers. Some restaurants and bars also offer the option to add a tip to a mobile payment app or through a QR code.

Why Are Cashless Tips Becoming Popular?

Cashless tips offer several advantages over traditional cash tips. For one, they're more convenient. Customers no longer have to worry about carrying enough cash or fumbling with change. They can also track their expenses more easily since cashless tips are included in their card statements.

Another reason for the rise in cashless tips is the shift towards a cashless society in general. With the increasing use of debit and credit cards and mobile payment apps, it makes sense that tipping would follow suit.

Impact on the Hospitality Industry

Cashless tips are changing the way servers and bartenders are compensated for their work. With cash tips, servers receive their gratuities immediately, while with electronic tips, they may have to wait for their paychecks to see the money. This can be a challenge for workers who rely on tips as a significant part of their income.

However, cashless tips can also benefit servers. With traditional cash tips, servers have to keep track of and report their earnings themselves, which can be time-consuming and prone to errors. With electronic tips, servers have a record of their earnings that can help them keep track of their finances and avoid underreporting.

Adapting to Cashless Tips

For servers and bartenders, adapting to cashless tips requires a shift in mindset and workflow. Servers will need to be aware of the different payment methods available to customers and be able to provide assistance in using them. They will also need to be patient and understanding if there are technical issues or delays in payment.

Restaurants and bars can also help their staff adjust to cashless tips by providing training and resources on the new payment systems. They can also encourage customers to use electronic tipping by making it more visible and accessible, such as by including a QR code on the receipt or offering a prompt on the payment app.

Cashless Tips

The Benefits of Cashless Tipping

Aside from the convenience of cashless tipping for both customers and service industry workers, there are also a number of benefits that make it a promising solution for the hospitality industry.

1. Safety and Security

One of the most important benefits of cashless tipping is the increased safety and security it provides. Without cash tips, there is no risk of theft or robbery, either from customers or employees. Additionally, cashless tipping can reduce the risk of fraud or mistakes in transactions, as digital payments can be tracked and verified much more easily than cash transactions.

2. Efficiency and Convenience

Cashless tipping is also more efficient and convenient for both customers and service industry workers. With digital payments, there is no need to worry about carrying cash or making change, and tips can be processed quickly and easily. This can save time for both customers and employees, allowing them to focus on other aspects of their experience.

3. Better Record-Keeping and Reporting

Another benefit of cashless tipping is the ability to keep more accurate records and generate more detailed reports. Digital payments can be tracked and analyzed in real time, allowing businesses to monitor tipping trends, identify areas for improvement, and make data-driven decisions to improve the customer experience.

4. Increased Transparency

Finally, cashless tipping can also increase transparency in the tipping process. With digital payments, customers can see exactly how much they are tipping and where their money is going. This can help to build trust and confidence in the service industry, and ensure that tips are distributed fairly and equitably among all employees.


Cashless tipping is a promising solution for the hospitality industry, offering benefits such as increased safety and security, efficiency and convenience, better record-keeping and reporting, and increased transparency. As more businesses and customers adopt cashless tipping, it has the potential to revolutionize the way we think about gratuities and improve the overall customer experience.