Tipflation is upon us.
The COVID-19-era explosion of cashless points of sale and touchscreens in shops, cafes, auto repair shops, and anywhere else money is exchanged has sent tipping culture into a tizzy: People are even prompted to tip upon checkout at retail shops and merch booths at farmers' markets.Approximately 72% of American adults noted that tips are being expected in more places presently than they were five years prior, according to a Pew Research Center survey conducted in August 2023.
Technology—particularly cashless payment systems—may have upended tipping norms through a phenomenon known as the framing effect, a cognitive bias in which people make choices based on how a set of options is presented or "framed" instead of based on facts.If a kiosk or other tech-based payment system prompts people to select 20%, 25%, and 28% tips instead of the traditional 10%, 15%, and 20%, it can create a culture of overtipping.
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