ADP (NASDAQ:ADP) and Gratuity Solutions just announced a new payment platform for service businesses that need an easier way to manage tips. The solution, called Instant TIPS, combines the capabilities of ADP’s existing paycard offering with Gratuity Solutions’ integrations of leading Point of Sale systems.
It works by extracting sales data directly from the company’s POS system and instantly paying tips electronically by adding the funds to the employee’s ALINE Card by ADP.
The Benefits of ADP Instant Tips
This solution provides multiple benefits to both businesses and their employees. The ability to add funds automatically to a card reduces the amount of work involved while also making reporting those funds easier. Additionally, it allows employees to get paid faster, potentially increasing retention rates for businesses. And adding money to a card rather than keeping tons of cash on hand makes things more secure and convenient for all parties involved, especially considering the decreasing use of cash in everyday transactions.
Kerry Morse, division vice president of Alliances for ADP Added Value Services said in an email to Small Business Trends, “Managing tips is a growing challenge for small businesses and service industries like restaurants, spas and salons. Employers and employees want an accurate, more frequent and direct way of paying and receiving tips. Instant TIPS enables employers to pay tips electronically to an ALINE Card by ADP. Employers don’t need to keep large sums of cash on hand and employees have access to those wages at the end of the day. And it’s actually not a matter of switching platforms — it’s about implementing a more accurate, more efficient and, frankly, safer method of tip management.”
ADP is offering four different versions of the Instant TIPS solution to suit the needs of different tip-oriented businesses. It is also making the Instant TIPS API available on the ADP Marketplace. So businesses that use the cloud-based app store to manage enterprise applications can access it.
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