Revolutionizing Gratitude: British FinTech Thankyü Launches Cashless Tipping Platform to Empower Service Staff
Introducing an innovative solution for the hospitality industry, British FinTech start-up thankyü has launched a unique tipping platform designed to benefit hospitality staff, gig workers, and musicians. The new TipTap wearable tipping band enables seamless and direct tipping through customers’ smartphones, addressing the financial strains faced by the industry.
Challenges Facing the Hospitality Sector
As the hospitality sector navigates increasing financial pressures, significant changes are set to take effect on April 1st. These include:
- An increase in the National Insurance rate for employers to 15%.
- A reduction in Retail, Hospitality and Leisure Business Rates Relief from 75% to 40%.
- A rise in the National Minimum Wage to £12.21 per hour.
Such changes are expected to heavily impact businesses, particularly those relying on tips, as some cafes could face an additional £3,000 in National Insurance Contributions (NIC) despite earning around £20,000 annually in tips.
thankyü’s Innovative Tipping Solution
thankyü is at the forefront of creating the first decentralized peer-to-peer tipping platform, supported by payments technology firm Viva.com and Mastercard. This solution allows employees to:
- Receive and manage tips instantly.
- Avoid deductions at source.
- Relieve employers from paying NIC on these transactions.
Workers can collect tips directly into their personal digital wallets and withdraw them at their convenience. Additionally, the app generates financial records to assist with tax self-assessment and credit applications, making it easier for workers to apply for loans and mortgages.
How the TipTap Band Works
The TipTap band utilizes NFC (Near-Field Communication) technology, allowing customers to simply tap their phones on the band to send tips directly to the server’s account. Alternatively, customers can use an in-app QR code to tip. After sending a tip, they can provide a star rating, and funds are settled into the recipient’s bank account every Tuesday, or sooner upon request.
Successful Trials and Compliance
The thankyü platform has been successfully trialed at Nibble Café in Hull and the Polar Bear Music Club, showcasing its effectiveness for both hospitality staff and musicians. The thankyü app is available for free on both Apple and Google Play stores.
This solution is in compliance with the Employment (Allocation of Tips) Act 2023, which mandates fair and transparent tip distribution. Prior to this act, tips were often pooled and distributed after lengthy delays, leading to concerns regarding fairness.
Flexible Tipping Options for Staff
thankyü provides two flexible tipping options for staff:
- thankyü Now: A pay-as-you-go model with a 5% transaction fee.
- thankyü Freedom: A subscription-based model offering cashback on platform charges, a free TipTap band, and a complimentary tastecard worth £79.99 annually for discounts at popular UK restaurant chains.
Support from Industry Leaders
Gerard Toplass, the founder of thankyü, emphasized the importance of supporting service industry workers during these challenging times. He stated, “This is a tough time for the hospitality and service industry. Rising National Insurance and reduced business rates relief will make it harder for businesses.”
Anna Lamb, the founder of Nibble Café, praised the system, saying, “I’ve always wanted a system where we could cut out the middleman so the staff could get the tips directly without NI being taken off, and thankyü seems to be the answer.”
Rose Barker, director of the Polar Bear Music Club, also highlighted its benefits, especially for musicians: “thankyü is perfect for us as we can offer it to the bar staff to earn more tips and for musicians to get more donations.”
As a special promotion, the first 1,000 users to download the thankyü app will receive a free TipTap band, facilitating easier collection of their hard-earned tips.
