Tipping Fatigue: Are Digital Prompts Making Us Tip Less?

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As We Rely Less on Cash, Tip Asks Become More Impersonal

Tipping has long been a part of U.S. culture, with its roots in everyday transactions dating back to at least the 19th century. However, as we move away from cash, tipping requests have become more impersonal. This shift is particularly noticeable with the rise of digital tipping, where customers are prompted to tip via a screen or digital pad at the point of sale.

Tipping Is Seemingly Everywhere Your Card Is Accepted

Point-of-sale tipping began about a decade ago, driven by mobile payment technology companies. These companies provided credit card processing technology to small- and mid-sized businesses, such as coffee shops, food trucks, and street vendors. As the technology spread, so did the number of industries using it, including its tipping function.

According to our survey, two-thirds of respondents reported being asked for a tip via touchscreen when paying for takeout or to-go orders. This trend extends beyond traditional tipping locations, with consumers reporting tip prompts at places like piercing/tattoo shops, political donation sites, convenience stores, and more.

Tipping Pushback Most Evident at the Checkout Register

There has been some backlash against the ubiquity of tipping prompts. An opinion column in The Guardian noted that almost no payment transaction in the U.S. is free from a tip prompt. However, traditional tip recipients, such as hotel workers and waitstaff, seem to be spared most of the consumer frustration.

Most consumers are willing to tip for services where tipping has long been customary. However, there is a growing sentiment that tipping should not be used to subsidize an owner’s payroll, especially for point-of-service transactions.

Service Industry, Guilt, and Inflation

Tips are a crucial part of the overall wage for many service workers, especially in states where service minimum wages are below the state-mandated minimum wage. Many survey respondents acknowledged the importance of tipping for workers who rely on tips to make a living.

However, there is some polarization among consumers regarding tipping. Some proudly tip generously, while others feel they should not be responsible for subsidizing wages. Additionally, many consumers feel the pinch of inflation or unemployment, leading to conflicted feelings about tipping. Others feel pressured to tip due to impersonal digital prompts.

At O1ne Mortgage, we understand the complexities of financial decisions, including tipping. If you have any mortgage service needs, please call us at 213-732-3074. Our team is here to help you navigate your financial journey with ease and confidence.

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