FinTech and DipJar Are Changing the Service Industry

 

The shift to a cashless society has made life easier for a lot of people, removing the need to fumble with coins and reducing the weight of our wallets. However, the loss of spare change has created an unintended consequence. People in the service industry who rely on the change left in the tip jar to supplement their wages have seen their income decrease while charities that brought in money by accepting people’s coins have seen their coffers shrink.

Enter FinTech to save the day. DipJar–which worked with an accelerator then launched its first pilot test in 2012 and is now working on a national scale–allows people to quickly scan their credit card (in a cup-shaped device, no less) and transfer a tip to the people providing them with a service or campaigning for a charity.

Ryan Kessler, co-founder and CEO of DipJar, thought up the idea when waiting for a coffee after learning from a barista that the new cashless system had decimated the number of tips she received, causing her income to fall about 40%. Believing that people still wanted to give and would happily tip if an easy option was provided, he created a system that allowed people to tip using their credit cards. Considering that tipping and donating are both billion dollar markets, harnessing the new technology to allow people to continue to easily tip or donate is a very logical and intelligent move.

Each DipJar is preset to receive a certain amount ($1, $5, $50, etc.), eliminating the often stressful decision-making process that tends to come with tipping or donating. As Kessler explains, “When you don’t know what the appropriate amount to give is, you end up not giving at all. You don’t want to give too much, you don’t want to give too little, so there’s a lot of power in setting a clear norm. The prospective donor only has to decide that yes, they like this cause, and yes, they want to give. They know the appropriate amount because you’re telling them, and it makes giving much easier and ends up increasing the total amount of giving.”

As technology changes how we act and how we move in the world, it is very important that people and people’s needs don’t get lost in the shuffle. It is fantastic to see people are using FinTech to insure that no one gets left behind and people can continue the process of Investing in Others.

 

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Welcome to the Leadervest experience. Founded after the 2008 Global Financial Crisis, we are Financial Services & FinTech specialists helping startups increase sales through sales & marketing consulting and believe in Investing in Others for more Responsible Leadership in Financial Services and FinTech.‎ We specialize in mobile payments/eCommerce, wealth/portfolio management robo-advisors, online lending, digital currency exchange, blockchain, big data & analytics, crowdfunding and insurance. Connect with us at Leadervest.com.