Impact of digital platforms on service worker income and satisfaction in the hospitality industry in South Africa

Abstract

Mobile applications in South Africa are enabling consumers to tip services workers digitally. The tip amount directly goes the service worker’s digital Telkom mobile network number. Transitioning from cash to digital tips can enhance transparency and accountability, potentially improving the livelihoods of service workers who heavily depend on tips. However, challenges such as digital literacy, access to technology, and transaction fees make it difficult for widespread adoption. This study investigates current digital tipping practices, evaluates their impact on service workers' income, and offers recommendations to make digital tipping systems more inclusive and effective.