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Tipping culture has always been a part of the service industry, whether dining at a restaurant, getting a haircut, or ordering food delivery. However, as more people adopt digital payments, the act of tipping has become a little more complicated. With fewer individuals carrying cash, opting instead to make digital payments through QR codes, contactless cards, or mobile wallets, many are left wondering how to leave a tip. Fortunately, cashless tipping options have emerged as convenient solutions.
This article includes tips, suggestions, and general information. We recommend that you always do your own research and consider getting independent tax, financial, and legal advice before making any important decision.
In this article, we’ll explore the growing trend of cashless tipping in the UK and the various digital payment methods, such as PayPal, that can facilitate it. We’ll also cover some key tips on cashless tipping etiquette, for those wondering just how much tip to leave.
One-third of all adults in the UK now use mobile contactless payments, which accounted for 37% of all card transactions in 2022, up from only 7% in 2016.1 Due to this major rise in the use of digital payment methods, many businesses now offer cashless tipping solutions.
Below are some popular ways to leave tips with a digital wallet:
Cashless tipping etiquette in the UK may vary depending on the industry, but the switch to digital tipping has raised new questions for consumers overall regarding the tipping process. Here's some guidance on giving cashless tips.
At businesses such as restaurants, spas, hairdressers and taxis, the general rule is to leave 10% to 15% of the bill as a tip.2 However, it’s always a good idea to ask about the standard tipping practice in each establishment. In some places, an optional service charge of 12.5% may be automatically added to the bill. In other businesses, such as spas, there may even be a no-tipping policy in effect, so it’s best to find out in advance.
In many establishments, tips can be left at the time of the transaction, whether through a QR code scan or tapping a card or connected device. However, other businesses, allow customers to leave a tip after the transaction has taken place and the service has been completed.
Customers who are unsure whether an establishment accepts digital tips shouldn’t hesitate to ask. Many businesses are happy to inform them about their tipping options and whether they accept them electronically. While most are already equipped with multiple payment options, asking about digital tipping can encourage them to implement such systems if they haven’t already. Additionally, inquiring about tipping practices helps avoid any awkwardness at the checkout and ensures service staff are properly recognised for their work.
Many UK establishments now have a variety of payment providers. Here’s a step-by-step guide on how to leave a tip using PayPal:
By following these steps to pay with a QR code, people can easily scan to tip without the need for cash, offering a convenient solution for both customers and businesses.
Cashless tipping is becoming an increasingly common practice in the UK. With various digital payment methods now available such as PayPal, QR codes, and contactless terminals, it’s easier than ever to leave a tip without carrying cash. By understanding the available options and following cashless tipping etiquette, people can seamlessly support service workers in today’s digital economy.