UK startup thankyü has introduced a wearable tipping app, allowing hospitality staff to receive tips instantly with a simple tap of a customer’s phone against a TipTap band. Developed in Hull, the app is powered by Viva.com and Mastercard Move, positioning itself as the UK’s first decentralized peer-to-peer tipping platform.
The app enables fast and direct payments, eliminating tax and national insurance deductions at source for employees while also removing national insurance obligations for employers. With employer national insurance contributions rising to 15% next month, thankyü estimates that a café earning £20,000 in tips annually could save £3,000 under this system.
Beyond tipping, the app provides financial records that can help workers complete self-assessments and secure loans or mortgages. This launch aligns with the Employment (Allocation of Tips) Act 2023, which mandates fair and transparent tip distribution, potentially returning £200 million annually to workers.
Previously, tips were often collected centrally and distributed up to 60 days later with limited transparency. The thankyü app ensures staff retain control over their earnings, allowing them to keep, share, or transfer their tips instantly.
The app offers two pricing models:
-
Pay-as-you-go: Staff pay a 5% fee per tip transaction.
-
All-inclusive: A monthly subscription providing cashback on platform charges, a free TipTap band, and discounts at thousands of UK restaurants.
Gerard Toplass, founder of thankyü, highlights the shift toward cashless payments, noting that over 80% of customers prefer tipping via cards or digital wallets but want to ensure their tips directly benefit staff.
“Rising National Insurance and reduced business rates relief will make it harder for businesses. Our goal is to ensure staff keep 100% of their tips, earn more, and get paid faster,” says Toplass.