The trend of increased tipping prompts, dubbed "tipflation," has surged during the pandemic, largely due to the rise of digital payment systems and the influence of POS companies like Square and Toast. While this trend benefits businesses and employees, it has also led to customer irritation and frustration, with many Americans feeling that tipping expectations have gone too far. Professor Ismail Karabas suggests that paying with cash may help customers avoid being prompted to tip, and predicts that tipping prompts may continue to expand unless there is government intervention or regulation.
Rumors and leaks suggest that the Oura Ring 4, the next generation of the popular smart ring, is in the works. While an official release date has not been announced, based on the company's previous pattern, it may be expected to hit shelves in 2024. The Oura Ring 4 is likely to offer advanced health features such as detailed heart rate monitoring and sleep tracking, and may include digital payment support. The price is expected to be around $300, with a monthly subscription fee. While waiting for the Oura Ring 4 may be worth it for some, the current Oura Ring 3 offers a great option for health tracking.
Ripple has obtained in-principle approval for a Major Payments Institution License from the Monetary Authority of Singapore, allowing its Singapore branch to offer regulated digital payment token products and services and further scale its customers' use of its crypto-enabled On-Demand Liquidity platform. Ripple's Singapore office saw a 50% YoY increase in headcount, hiring across key functions such as business development, compliance, finance, legal, and sales as it ramps up its presence in the country. MAS has approved 190 Major Payment Institution licenses and 11 Digital Payment Token Service licenses so far.
A new survey from Bankrate.com shows that 66% of U.S. adults have a negative view about tipping in general, with 41% believing that businesses should pay their employees better rather than relying on tips. Digital payment platforms that invite consumers to tip appear to be making people upset, as 32% of those surveyed said they were annoyed with pre-entered tip screens. Tip frequency overall has been dropping, with servers at sit-down restaurants saying their tips were down 8% compared to last year. Hair stylists and barbers were the hardest-hit category, as they said their tips had dropped by 13% this year compared to 2022.
More businesses are asking customers to tip, driven in part by the spread of digital payment technologies that include prompts to tip workers. Some companies could also be turning to tipping to avoid paying their workers more. Businesses relying on tips to help pay their workers is far from a new phenomenon, particularly in the restaurant industry. One potential reason service businesses are warming up to tipping is that they're under particular pressure to keep labor costs in check.
