Around three years ago, Johan Ferreira stopped at a garage on his bike and could not tip the petrol attendant because he had no cash on him. In the era of online banking and Apple Pay, cash is, well, worthless. This is what led to the TipTag seed being planted – a locally-founded financial technology company offering a secure, cashless tipping system designed specifically for service workers. The tag is NFC-enabled with backup QR codes, allowing seamless tipping catered towards car guards, petrol attendants, hospitality and restaurant workers, and golf caddies.
Berno van Aswegan and Declan Sawyer saw potential in Ferreira’s idea and it was swiftly put into action. The basic model of TipTag looks like this: a service worker receives a unique tag that is connected to the TipTag app, and customers tap the tag. The app browser opens to a payment page and a tip amount is selected. The transaction is completed and the money goes directly to the service worker. An instant transaction with no additional bank fees. Both the tag and the app are free. This is fast, feasible, and secure.
The TipTag app is set up on the service worker’s phone. The app is password protected and connected to their unique tag by their ID number. When the money is transferred from the tippee’s account, it goes directly to the company and can be spent on the app, transferred to another wallet, or withdrawn from an ATM if cash is needed. The company has partnered with cell phone providers and stores such as Checkers so that money can be spent directly on data, airtime, groceries, and other goods. Essentially, TipTag removes all the “middlemen”.
The tag is more convenient, affordable, and faster than using tipping systems currently available. With these come the extra fees of renting from the providers as well as bank charges. Service workers also need to type in their amount and ask for approval from the tippee. On top of this, they still do not have direct access to their tip as it goes into a company bank account, which, more often than not, has high service charges, rendering the tip useless. With the TipTag app, the desired tipping amount can be selected from prompts or manually typed in. TipTag is, by far, the fastest way for service employees to get immediate and affordable access to their tips. This is what makes them stand out. There are no extra catches or hidden terms and conditions that make accessing funds more difficult. It is as direct as cash would be; just add extra security and advanced technology.
The main purpose of this business is to support the informal sector. For a long time, there has been an increasing gap between service workers because of advancing technology that is not always accessible. TipTag creates a system that removes barriers while still being technologically advanced. It creates a practical way that is accessible to people and is a step-up from notes and coins.
The majority of South Africans have access to smartphones in one way or another. Deals with service providers can get you access to a smartphone that has the technology needed for the TipTag app on day-to-day payment plans. Data and Wi-Fi plans are also widely available nowadays. Essentially, just the tag is needed, and the founders have a plan in motion to roll those out.
Towards the end of October, TipTag will be moving around Pretoria and handing out tags to service workers. From there, they will distribute to the larger Gauteng area, and then move on to Durban. Finally, they will provide the Western Cape, specifically George, with tags. Make sure to follow their social media accounts to see how their practical business is making a massive difference. All it takes is three easy steps: tap, select tip, and pay. All of this will help you make a difference to someone who makes your daily life easier.
Website: tiptag.co.za
Instagram: tiptag.za
Email: info@tiptag.co.za
