The global tipping market is worth more than $100b
The partnership will allow workers with eligible debit cards to receive tips into their bank accounts in minutes.
As fewer tips are paid in cash, which can be a significant part of a hospitality worker’s income, digital tipping can be a major benefit.
The global tipping market is worth more than $100b. The administration and payment are typically carried out by employers, and with different regulatory and fiscal practices in place in different countries, this can be very time consuming and costly.
EasyTip has estimated that inefficiencies related to the traditional way of tipping costs as much as $5b each year.
The fintech says its solution reduces administrative costs, provides instant customer feedback, and improves employee performance and retention.
Founded in 2021, the platform serves 1,500 businesses in the UK, EU and the UAE, including brands such as Dodo Pubs Co, Sassoon and Urban Retreat.
The partnership follows a period of piloting Visa Direct payments, which saw a fivefold increase in transfer speeds, EasyTip said.
During the pilot phase over the last 12 months, tips increased by more than 200%, some outlets reported.
The solution is timely in the UK, with the recent passing of the Employment (Allocation of Tips) Act 2023.
In accordance with the new legislation, employers are required to ensure that all tips, gratuities and service charges must be paid to workers in full by the end of the following month.
Evgeniy Chuikov, chief executive and co-founder of EasyTip, commented: “Tips are a very important source of income for employees in these sectors and are an essential factor in staff motivation.
“Offering faster payouts via Visa Direct will provide users with greater financial freedom and an immediate sense of reward.
“With cash transactions rapidly declining, EasyTip and Visa are pleased to offer businesses a more cost effective, compliant, and fairer way to collect tips for their teams.”
Simon Gilson-Fox, head of product and solutions of Visa UK & Ireland, added: “Partnerships play a vital role in driving innovations that reshape how we pay and get paid.
“Through our partnership with EasyTip, Visa Direct helps provide employees with faster access to their earnings.”
Visa Direct enables users to send money around the world “at a fraction of the cost” of wire transfer, according to Visa.
EasyTip also plans to utilise Visa’s technology to allow tip recipients to send money internationally.