StudyFinds, a consumer research outlet, has announced findings on how digital tipping is influencing consumer behavior, tax revenue, and business practices. The announcement was made on the Study Finds website.
According to StudyFinds, digital tipping has become a $54.2 billion industry in the United States, reshaping consumer behavior and business loyalty. The report suggests that when customers feel observed while tipping on digital point-of-sale systems, such as swivel tablets, they tend to tip more but are less likely to return due to reduced privacy affecting their sense of control and generosity. Researchers indicate that features like post-payment tip editing can help restore customer autonomy and improve long-term business relationships.
The Pew Research Center highlights a growing trend among Americans towards a cashless economy, with 41% stating they do not use cash for any typical weekly purchases. This marks an increase from 2015 when only 24% reported going entirely cashless during a typical week. This shift has contributed to the rise of digital tipping as a common practice.
Reuters Thompson reports that provisions to eliminate taxes on tipped income are being actively considered in Congress. This reflects former President Trump's push to make tips tax-free for service workers. Several bills propose different approaches: the No Tax on Tips Act would create a deduction for tipped income capped at $25,000, while the Tip Tax Termination Act would exclude up to $20,000 in tips from gross income over five years. Lawmakers have added safeguards to these proposals to limit abuse by ensuring only traditional tipped workers benefit and capping eligibility based on occupation and total compensation.
StudyFinds publishes summaries of recent scientific research for a general audience and partners with universities, peer-reviewed journals, and research institutions to provide research-based news. The organization emphasizes fact-checking and verification in its reporting process.