It’s dirty. Inconvenient. And most of all—slow. We’re talking about cash, and while in the past it signified the ultimate form of convenience, in 2021 it’s becoming a hassle for consumers and businesses alike. Cash payments were on their way out for years, but the pandemic accelerated their extinction. As we reported in our Post-Pandemic Payments Guide, cash usage declined by a whopping 32% from 2019 to 2020.
With cash on the decline, businesses and their employees (particularly those who work for tips) have been greatly impacted. We’ve heard from plenty of restaurant managers who said making trips to the bank to get change was taking hours of their time each week. While an alternative to tipping employees in cash is putting those funds on the next paycycle, who wants to wait two weeks for their hard-earned money?
If consumers aren’t using cash, businesses shouldn't rely on it to pay employees. And if you're a point of sale or other technology partner, enabling digital tip payouts helps all your clients seamlessly pay their employees in one quick way.
Read on for three reasons why instant, cashless tips are the best bet—and how to make the switch.
Cashless tips = faster
Instead of waiting for someone to make change at the end of the night, taking trips to the bank, or even waiting a full two weeks to get tips added onto their next paycheck, workers can get their tips at the end of every shift—even nights and weekends—when you switch to cashless tips. A server or delivery driver, for example, can get cashless tips sent to their account at the end of the night and access those funds right away by using Branch.
Not only does this improve employees’ quality of life and boost their financial wellbeing, but it serves as a competitive benefit when trying to attract and retain more talent in a tight labor market.
Cashless tips = easier
Tipping out your employees at the end of the night can quickly become an administrative burden. You either need to make change from the till which more than likely won't have the right bills since consumers aren’t using cash; make constant trips to the bank; or coordinate putting each employees’ tips onto their next paycheck. When you switch to instant, cashless tips, you save time by eliminating trips to the bank and you save money that might have been spent issuing paper checks. You can pay your employees instantly after each shift and gain hours of your time back by simplifying your payroll processes.
Cashless tips = safer
In a post-pandemic world, using cash is no longer that sanitary or safe. Consumers no longer want the liability of hauling around a wallet of paper money—or of picking up more germs. (The lifespan of paper bills can range from 4-15 years, according to the Federal Reserve, giving those dollars plenty of time to harbor an array of germs and bacteria.) Your businesses also incurs more of a liability by having a til full of cash, too. The risk of theft increases when businesses keep large amount of cash on hand.
In a time when people are increasingly focused on worker health and safety, it pays to switch to a method of tipping your employees that leaves all of you feeling safer and more secure.
Ditch cash & go digital
The shift to digital, cashless tips has been building for a long time. And now that it's gained momentum, it’s here to stay. For restaurants in particular, the competition has never been more intense for attracting and retaining employees. Why not implement a streamlined payments process that gives you the competitive edge while making things easier for both your business and your employees?
If you're ready to switch to cashless tips, learn more by clicking below!
Psst: Point of sale and technology partners—learn about Branch's easy integration options to deliver cashless tips for all your clients here: