The Economics of Tipping
Tipping on Apps and Tip Creep
Payment screens now prompt for tips at counters, kiosks and delivery apps, a trend called tip creep or tipflation.
Prompts everywhere.
Prompts
Tablets and card machines ask for a tip in a few taps.
Defaults
Suggested percentages nudge people into higher tips.
Delivery apps
Users can tip riders before or after delivery.
Fatigue
Many people feel pressured, which may reduce goodwill.
A tap screen
A coffee shop's payment device shows tip options of 15, 20 and 25 per cent.
Assuming every prompt is customary
Tip only when you feel service merits it.
Key takeaways
- Payment prompts encourage tips.
- Defaults nudge higher tips.
- Delivery apps allow tips.
- Tip fatigue is emerging.
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