As restaurants and others in the hospitality space look for ways to boost retention, PYMNTS Intelligence reveals that instant tip payouts can go a long way — so much so, that many in the industry would even be willing to pay a fee to be paid in real time.
The new report “Measuring Consumer Satisfaction With Instant Payouts,” a PYMNTS Intelligence and Ingo Money collaboration, draws from a census-balanced survey of more than 3,900 U.S. consumers about their interest in instant disbursements. The results reveal that 32% of hospitality workers receiving tip payouts would be willing to pay a fee to receive the payments instantly.
Indeed, there is high demand for instant tip payouts among hospitality workers, according to the PYMNTS Intelligence study “Generation Instant: Hospitality and Tips,” also created in collaboration with Ingo Money, which drew from a census-balanced survey of more than 2,600 consumers across the U.S.
The report revealed that more than 30% of hospitality workers received tips through instant methods at least once in the last year. Plus, when offered instant as an option, 82% of hospitality workers selected it to receive their tips.
In an interview with PYMNTS, Jordan Boesch, founder and CEO of restaurant team management platform 7shifts, argued that instant tip payouts benefit all parties.
“I think this is going to be a win-win in the long term for the workers as well as the operators,” said Boesch.
Additionally, Brian Hassan, co-CEO of instant cashless tip payouts platform Kickfin, discussed some of those benefits to employers in a conversation with PYMNTS earlier this year, noting that he sees instant digital tip access and payouts having much the same transformative effect that early wage access had when it appeared several years ago.
“That’s where I think the market’s going to be going the next few years is how can we acquire more tip transactions and pay them out in real time,” Hassan explained.
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