How tipping is changing and fintechs are helping

Technology brings new expectations for staff, businesses and consumers

The level of tipping in a country is impacted by national culture.

Photo by Sam Dan Truong on Unsplash

In Japan, there is no expectation of tipping - it can even be offensive to tip someone, as good service is the norm and the expectation. The USA has a very generous tipping culture, but partially, it’s because many states have a lower minimum wage for “tipped” employees. So, to some extent, customers know that their tips subsidise the employee’s salary, and wages would need to increase without the tips.

Whilst the quality of the service is a major factor in leaving a tip and the amount to tip. One of the other major factors, at least in the USA, is the fact that workers who operate a tipped basis will likely not earn a high hourly wage without the tips. Source - The Pew Research Center.