Change affects change: cashless payments may cause a decline in tips for hairdressers

As salons and barbers prepare to return to the salon and face the new normal in the midst of a pandemic, many changes have had to be made to make the experience of going to the hairdressers as safe as possible. This includes stocking up on PPE, altering the booking and payment systems and following hygiene guidelines to minimise risk. But with the new procedures, studies show that hairdressers could face losing out in tips. Although not as widely practiced in the UK as it is across the pond, tipping is still a huge part of the industry, but with the widespread recommendation of cashless payments clients have anticipated that they will be put off handing cash for tips. The survey conducted by asktraders.com revealed that 75% of consumers worry using cash leaves them open to germs and infection. According to the new research, 2 out of 3 of customers will not be tipping those who tend their hair. Nigel Frith, senior financial analyst at asktraders.com says, “It’s clear that a move to a cashless society is on the cards, as consumers have been encouraged to use cashless payments during the pandemic." He continues; “The net gains of that move could be positive; the ease of digital payments combined with the rise in challenger banks and payment-enabled devices mean it’s a more accessible payment method than ever before. Yet the impact on those in service industries cannot be ignored. Nigel suggest a change in behaviour fo business es to allow for tipping in the 'new normal', by, "either continuing to allow a level of cash payment, or making tips via cashless payment a clearer option."