TiPJAR, a UK-based cashless and contactless tipping platform, has successfully secured nearly £500,000 through its equity crowdfunding campaign on Crowdcube. The funding round launched earlier this month, with the original goal of raising £300,000.
TiPJAR revealed that its platform was designed for hospitality staff. The company explained that it has a powerful, legally compliant distribution engine that empowers staff to control and share their tips fairly, as well as transparently, but also takes the admin burden and risk away from business owners.
“TiPJAR provides a solution for guests to tip workers in under 8 seconds via their phones, with no app required. Designed for hospitality staff, but other tipped workers such as buskers & hairdressers are using it too.”
TiPJAR noted it is set out to solve a few problems:
- Tipped workers are earning less each year as cash transactions reduce.
- Businesses struggle under the admin burden, tax compliance and levels of the transparency needed to manage tips.
- Consumer confidence in tipping is at an all-time low, with stories of major chains using service charges for their own benefit.
TiPJAR then further stated:
“By facilitating the direct payment of tips between customers & staff we remove the business or bar out of the equation, thus removing their liabilities, the burden of complying with tax legislation & reducing their costs of running a compliant tronc system.”
The company has already appointed a CEO in the US, with the aim of having live clients by November 2020, and has plans to expand across the EU and Australia. It is currently offering 9.52% in equity, at a £4.5 million pre-money valuation. The funding round is set to close at the beginning of September.
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