Home Lifehacks for geeks The Psychology of Technology: How Payment Apps Help Restaurants Increase Tip Size

The Psychology of Technology: How Payment Apps Help Restaurants Increase Tip Size

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The Psychology of Technology: How Payment Apps Help Restaurants Increase Tip Size

In our blog, we’ve talked about how restaurants automate their operations with special systems (e.g, Jowi ), take care of visitors’ comfort with the right light and sound , as well as using psychological tricks to increase the average check.
Today we’re going to talk about another interesting psychological thing that leads to a visitor leaving more tips in the establishment. Studies show that the introduction of electronic payment methods by restaurants through special apps contributes to this, writes RMagazine publication.
Over the past few years, mobile payment apps have managed to gain significant popularity. In doing so, it turns out that such tools not only make the payment process easier, but also encourage consumers to pay more in tips.

Research : How it works

In most mobile payment apps, when you pay your bill, a window appears with the recommended "default" tip amounts. This simple scheme increases the tip amount by about 38%. As a rule, the consumer has three tip amounts to choose from, as well as a "tip waiver" option.
A study on The impact of technology on tip pay showed that out of the three amounts offered, consumers most often choose the average amount. So, even though 15% is a reasonable tip percentage, the fact that it is the smallest amount will make you be "generous" and pay as much as 20% (if the service itself did not cause serious complaints). More often than not, consumers lean toward the average so they don’t look stingy or insolvent.
The Psychology of Technology: How Payment Apps Help Restaurants Increase Tip Size
Complexity of bill payment for customers via iPad POS systems
With the introduction of the digital tip contribution system, customers began tipping in places they wouldn’t have tipped before. If you include the recommended tip amount on the customer’s bill, the likelihood that they will pay increases.

Example

When paying through a mobile app, we don’t feel that the money is real. That’s why many customers, without thinking twice, choose a higher percentage of tips. Thus, when paying bills through the restaurant app Flypay, the staff remuneration averaged 10-15% of the check. At the same time paying by card, customers spent no more than 10%. With non-cash payment customers do not notice how they spend more, it seems to them that shopping opportunities become unlimited. If they spend a little more than usual, they won’t run out of money.
Now, customers tip without regret, because tips are just an abstraction, faceless numbers on a screen. Whereas, when paying in cash, they think about how much they spend.
Thanks to the ease of paying through mobile apps, the number and size of "thank-you" fees has increased dramatically. Whether an establishment uses its own app or a third-party app, mobile payments definitely have a big impact on the amount of tips.

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