In the ever evolving financial world, cash is becoming used increasingly less often by customers. This is especially true in the service industry. Cards are becoming king when paying and this includes tipping. Pre-paid cards can be a great way to pay out
tips to service industry workers in real time and for immediate access.
On average there are estimated to be over 1 million workers in the accommodation and food and beverage service industry in Canada today. The majority of these workers rely on gratuities which make up a large percentage of their wages. This isn’t an issue
when customers pay in cash but in today’s largely cashless society workers are seeing a shortage at the end of their shifts and have to wait up to a week to receive gratuities in some cases.
Digitizing tips is a great solution for workers to receive money in real time every day after every shift and prepaid cards are a great way to do so. Employers can transfer gratuities instantly to a prepaid card. This also creates a safer environment for
workers who are no longer leaving jobs with wallets full of paper cash.
Not only does this create a safer environment for workers, prepaid is a great option for budgeting and tracking spending. As someone with experience in the service industry for many years, it is safe to say spending cash is easy and hard to track. By digitizing
tips and having real time data, this allows workers to be more in control of their finances rather than having cash disappear from their wallets.
Generally speaking, prepaid cards can be a great payment solution for migrant and temporary workers who may not have access to a bank account. They can receive pay instantly rather than waiting for a paper cheque. Not to mention reducing the need for paper
cheques for employers. By switching to prepaid companies can save as much as $233/employee!
Consumers today rely less and less on cash, employers need to recognize this trend and find the best options for employees to get paid.