UK startup thankyü has introduced an innovative app that allows customers to tip hospitality staff effortlessly using a wearable tipping band paired with their smartphones.
Based in Hull, thankyü claims to have developed the first decentralized peer-to-peer tipping platform, utilizing technology from Viva.com and Mastercard Move. This approach enables staff to receive and manage their tips more efficiently, as employees are not required to pay tax or national insurance contributions directly from their tips. Consequently, employers also benefit, as they are exempt from paying national insurance on these tips. With the impending increase of national insurance for employers to 15%, a café generating £20,000 in annual tips could see an additional £3,000 in costs, according to thankyü.
The app also offers a downloadable financial record of tips, assisting hospitality and service staff with self-assessment forms and acting as a credit reference for loans or mortgages. Thankyü was developed to support both employees and employers in light of the Employment (Allocation of Tips) Act 2023, which mandates fair and transparent sharing of tips and gratuities among workers. The government estimates this legislation could return an extra £200 million to workers.
Previously, tips were often collected when the bill was settled and distributed by employers up to 60 days later, typically with minimal transparency. The thankyü app allows hospitality and service staff to collect tips directly into their personal wallets and share them with colleagues, family, or friends, or transfer them to their bank accounts if desired.
The app is available for free download and offers two payment options for staff: a pay-as-you-go system that charges five percent per tip transaction, or an all-inclusive version that provides cashback on platform charges, a free TipTap band, and discounts at thousands of participating UK restaurants for the cost of a single tip each month.
Gerard Toplass, founder of thankyü, stated, “With rising National Insurance and reduced business rates relief, financial pressures are increasing for businesses. Additionally, as we move toward a cashless society, there is less physical cash available for tips, which can represent up to 40% of a staff member’s income. However, surveys indicate that over 80% of customers prefer to tip using cards or integrated wallets while ensuring that the intended recipient actually receives the tip. That’s the motivation behind thankyü. We strive to empower staff to retain up to 100% of their tips, enabling them to earn more and receive quicker payments.”