Cashless is killing tips: Over a third of Brits won’t tip via card due to lack of confidence it goes to the right person

A recent report from UK Finance has revealed the UK is another step closer towards becoming a cashless society as the number of payments made using notes and coins last year declined by more than a third.

As more businesses decide to go cashless, this new move towards a fast-tracked cashless society is having devasting effects on the nations tipping habits, according to a new report.

The 2021 Tipping Index commissioned by card payment specialist takepayments Limited, surveyed over 2,000 consumers to compare how tipping attitudes and behaviours have changed through the pandemic.

The findings reveal that pre-pandemic, cash was the most favoured payment method for tipping (91%) as almost two thirds (64%) of those that tip this way said they felt more confident the tip would go directly to the person who served them.

However as more businesses are no longer accepting cash, the research reveals less Brits are opting to carry cash as almost one in five (18%) said they no longer carry cash which they would usually leave as a tip.

This new cashless movement is impacting tipping habits as one in four (23%) said they would only leave a tip if they had spare cash on them and one in four (24%) said they would specifically bring cash especially to tip.

Coronavirus and hygiene fears play a part in people tipping less too, as almost one in six (14%) said they are now less likely to leave cash as a tip due to hygiene or health reasons.

While almost three in ten Brits recognise tips are a big part of peoples income, more than a quarter (27%) state that while places no longer accept cash and only accept card payments, tipping isn’t always possible as Brits lack confidence that tips made by card payments go directly to the person who served them (35%).

And for those Brits that do feel confident tipping on card, more than a third (35%) admit they leave a bigger tip when paying cash.

Sandra Rowley at takepayments Limited said:  “While the sectors which commonly involve tipping can finally re-open, the professions who rely on tips to top up their income are unfortunately continuing to struggle due to the nation’s lack of knowledge around tips and card payments.

There is a misconception around card payments and tipping which needs to be highlighted as businesses are able to separate tips from the cost of services when taking card payments. The government is set to announce a new proposal for a Tipping Bill next month which will hopefully give the public more knowledge around workers rights and tips, as well as instil confidence around tipping on card.”

The full findings of the takepayments 2021 Tipping Point Report are available to view here.