Cash Tipping Is Shrinking in the New Cashless Economy
The Cashless Economy Hurts Service Workers Reliant on Cash Tips
Cash tipping is declining in the U.S., according to many studies. In fact, less than 10 percent of U.S. consumers list cash as their preferred payment method. Given the problems associated with cash (theft, robbery, counterfeiting), consumer preference for credit and debit cards is not surprising
Unfortunately, many service workers remain dependent on cash tipping. As a result, service employees will be hurt financially unless they find a way to participate in the new economy. Sadly, many of those at risk are low paid and marginalized workers.
Many Individuals and Small Businesses Rely on Cash Tipping
Not surprisingly, the cashless economy hurts many workers and small businesses. With a little thought, we compiled the following list of jobs affected by reduced tipping:
- Food truck operators
- Hotel concierges, maids, room service and bellhops
- Charity workers
- Workers paid in cash
- Hotel, restaurant, mall and airport valets
- Airport shuttle drivers and luggage attendants
- Barbers, beauty and nail salon technicians
- Street performers and bar musicians
- Small local retailers and restaurants
- Children fundraising
Current Tipping and Payment Technologies Fall Short
Tech companies (Apple, Square, Amazon and Venmo) develop partial solutions that make cashless payments easier. Disappointingly however, these solutions don’t reach the disaffected sectors of the economy. Instead, the majority of the available payment solutions are self-serving ways to increase market share. As a result, none of these solutions actually expand opportunity or promote inclusion for the disenfranchised.
Help Is on the Way
TipTapGo develops tipping and payment solutions that help marginalized, motivated people and organizations participate in the new cashless world. We provide them with the tools and opportunity to thrive and prosper.
