TiPJAR, which is a global cashless tipping platform designed for hospitality staff & other tipped workers, has secured £692,780 of its £400,000 target from 370 investors via Crowdcube. The company reports an £11,000,000 pre-money valuation, £5.92 share price, and 5.92% equity. There are now 27 days left in this sale (at the time of writing).
TiPJAR notes that they have a “powerful,” HMRC cleared, distribution engine “empowering staff to control & share tips fairly & transparently.” Already live in more than 1650 venues in the United Kingdom, this is “tipping, as it should be,” the company claims.
Here are some of the key business highlights:
- Launched in the US, with flagship Visa partnership.
- Backed by Gary Dolman Co-Founder of Monzo
- Live in over 1650 venues, 100,000 users already using the platform
- Cleared by HMRC providing an alternative to a traditional tronc system
As noted by the company, this is tipping, “as it should be.” Direct, transparent and “staff-controlled.”
The Fintech firm also mentioned that its tap-to-tip innovation ensures that 100% of tips should “always go directly to staff.” You can leave a tip in 5 seconds and there’s no app needed to use the service.
As mentioned in the announcement:
“TiPJAR is a solution for customers to tip workers in <5 seconds via their phones. No app required. Initially designed for hospitality staff, now with other tipped workers such as buskers & hairdressers using the platform too.”
The company says that it aims to address the following:
- Tipped workers are earning less each year as cash transactions reduce (Covid-19 supercharged this problem)
- Businesses struggle under the burden of tax compliance & levels of 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
The firm’s management added:
“We’ve used tech to allow customers to tip staff & groups of staff directly, this transparency gives consumers confidence that the money goes to who it was intended & removes the businesses’ liabilities, the burden of complying with tax legislation & reduces the cost of running a compliant tronc systems.”
They also mentioned:
“We’ve estimated the global tipping market to be worth a combined $100bn per year. We’re the world’s first multi-currency, scalable solution, that allows us to work quickly to help solve this problem across multiple countries.”
Since their first raise in 2020, TiPJAR has received clearance from HMRC “defining digital tips equivalent to cash, launched in the US with a partnership with Visa, launched in the EU, launched a dedicated tipping device ‘TAP TO TIP’ & became the first tipping solution to use open banking.”
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