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BizReport : Mobile Marketing : July 08, 2016

Payment tech drives tips

Square analyzed data from its new card reader and found that those customers who use NFC payments were more likely to leave a bigger tip than those who used a physical credit card.

by Helen Leggatt

Six weeks of data from Portland's thousands of retailers who use Square's new card reader reveals that not only are NFC payments fast and instantaneous, those who use NFC are also more likely to be more likely to tip, and tip more.

During the course of the study, 67% of people who swiped a card left a tip. However, of those using a chip card 71% left a tip, but it was those who payed using NFC methods, such as Apple Pay, that tipped the most (73%).


At the start of this year, Square analyzed data collected in January 2016 from more than 2 million retailers using its Register mobile payment system in the U.S., which enables individuals or small businesses to accept credit card transactions for a small fee. They found that customers in New Hampshire were the most generous tippers, averaging 17.1% of their transaction cost. South Dakota had the stingiest tippers, with an average tip left of 15.3%.

Last year, research from tech research firm Software Advice found that more than two-thirds (68%) of consumers prefer tipping using POS technology such as a tablet or iPad with 89% rating such a tipping method as either 'not at all difficult' or 'minimally difficult'. However, their survey also found that allowing customers control over their tip remains important. Two-thirds (66%) prefer to input tips themselves as opposed to having it set by the server. Furthermore, 29% are more likely to leave a tip if they are given the chance to opt-out of doing so.

Tags: mobile, mobile payments, NFC payments, retail, trends

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