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Serving The Future: How Digitizing Tips Can Improve The Lives of Restaurant Workers

There are over 2.5 million people working as restaurant servers in the United States. The majority of these workers rely on tips and gratuities to make up a large percentage of their wages. This isn’t a problem when customers pay with cash, but with 90 percent of diners at full-service restaurants now paying with cards, there is often a shortage of cash to go around when servers go to cash out at the end of their shifts.


Digitally disbursed tips and digital payment solutions can put an end to any tip-related issues, making payouts instant and safe for millions of workers. Merchants can use these digital disbursement systems to quickly digitize cash earning and instantly issue payouts to employees via prepaid cards. Workers can receive a notification via text or email when the deposit has been made.



Removing servers’ overreliance on cash not only removes the safety risk presented when servers leave restaurants late at night carrying large sums of cash on their person, but it also helps waitstaff be more financially responsible.


Servers are far less likely to spend their tips carelessly when they have been deposited into their accounts. Servers can be more practical about their money and more conscientious about their spending habits. With prepaid cards, servers can properly budget and keep better track of their financial obligations, such as rent, bills, health care, etc. Because the tips have been digitized and sent directly to their accounts, servers can be more practical about how their funds are spent. Real-time data and up-to-the-minute monitoring mean servers can seize control of their financial situations, instead of constantly being “bank poor” but “cash rich.”


Consumers today use less and less physical currency for purchases, opting instead to pay via card or alternative payments. With payments moving in this direction, it’s important that industries that rely on cash, such as the restaurant and hospitality industry, make adjustments to better serve their employees. Digital payments provide merchants with the ability to quickly issue funds to workers and serve as an effective tool for financial management.



Comments: (1)

Melvin Haskins
Melvin Haskins - Haston International Limited - 31 May, 2019, 09:33Be the first to give this comment the thumbs up 0 likes

A far better solution is for restaurants to increase their prices by 15% and customers not having to tip. It is an archaic practice that has got out of hand. Bad service can be resolved by calling the manager and asking for a discount.

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