Seems customers leave bigger tips if they use mobile payment apps
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It’s likely only a matter of time before mobile payment apps become more popular among consumers, and there are some people very excited: restaurant waitstaff and bartenders. Both mobile payment app providers and restaurants have noticed an uptick in tips if consumers use their smartphones to make payments for food and drinks.
Customers may need to wait for their food order to be completed, but don’t have to just sit and wait to pay. In addition, some apps allow restaurant patrons to check their bill in real-time, and even split it among the number of guests.
“We do see increase at bars where people haven’t been tipping,” said Michelle Songy, co-founder of the Cake mobile pay app, in a statement to CNBC. “I’d like to think as we are trying to make the payment experience a bit more fun, easier or quick it leaves you with a better experience.”
Mobile phone and tablet users are expected to make 72 billion transactions in 2015, and that number will increase up to 195 billion annually by 2019, according to Juniper Research.
Questions & Answers
Q.What kind of businesses are seeing an increase in tips when customers use mobile payment apps?
What kind of businesses are seeing an increase in tips when customers use mobile payment apps?
Restaurant waitstaff and bartenders have noticed an uptick in tips. The article specifically mentions bars where people previously hadn't been tipping are now seeing increases when these apps are used.
Q.What benefits do mobile payment apps offer customers besides the payment itself?
What benefits do mobile payment apps offer customers besides the payment itself?
Customers using these apps can avoid waiting to pay after their food is ready. Some apps also allow patrons to check their bill in real-time and conveniently split the cost among guests.
Q.What impact does Michelle Songy believe a better payment experience has on customers?
What impact does Michelle Songy believe a better payment experience has on customers?
Michelle Songy, co-founder of Cake, believes that making the payment experience more fun, easier, or quicker leaves customers with a better overall experience at the establishment.
Q.How significantly are mobile payment transactions expected to grow in the coming years?
How significantly are mobile payment transactions expected to grow in the coming years?
Mobile phone and tablet users were projected to make 72 billion transactions in 2015. This figure is expected to rise considerably, reaching 195 billion transactions annually by 2019.
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