Resource Library

Generation Instant: Hospitality and Tips

October 20, 2023

Cash, the ultimate real-time payment method, has always been and remains the way that many hospitality workers receive tips, whether left on the table or in a tip jar. Yet consumers’ penchant for using contactless card and digital wallet technologies more and more to pay means that credit and debit cards are ultimately also being used more, causing payout frictions for both hospitality employees and employers.

When a customer pays via card, tips are added to the check, forcing restaurants to turn those digital receipts into cash at the end of every shift — often meaning going to the bank every day to get enough cash and keep it secure until tip payout. Many employers deal with this issue by including tips in weekly payroll, a concession that means payments are far from instant and only received days later.

Restaurants want to accommodate instant cash payments, but doing so is expensive and makes them vulnerable to robbery and fraud. To facilitate instant tip payout without these risks, hospitality employers need to deliver the same payout experience as cash using advanced payment technology and instant rails.

Generation Instant: Hospitality and Tips, a PYMNTS Intelligence and Ingo Money collaboration, is based on a census-balanced survey of 2,606 consumers across the United States conducted between August 28 and October 4 examining consumers’ satisfaction with the disbursements they receive from government and nongovernment entities.

Download the resource to see what we learned.