In the UAE, the service industry workers like delivery riders and gas station attendants used to earn up to Dh1,500 per month in tips before the rise of digital payments, even though tipping is not mandatory. With the transition to cashless transactions, the average monthly tip amount has significantly decreased for some workers, with some now earning as low as Dh 200 per month. A delivery rider who has been working in the country for 7 years expressed that most payments are now made through cards, leading to less interaction with customers and a decline in tipping. Tourists are still more likely to tip due to having cash on hand.
Similarly, a gas station worker, Amir, noted a decrease in tips received over the years, with most customers now struggling to find spare change to tip with. In the absence of a standard tipping amount in the UAE, individuals often round off the bill or pay around 10 to 15 percent. Despite the increase in digital payments, some residents like Mohammed Bushra, a Sudanese expat, continue to keep cash on hand specifically for tipping workers as they understand the importance of tips for service industry staff.
Inas Harbi, a Lebanese resident, also acknowledged the importance of having cash for tipping purposes after feeling guilty for not being able to tip in the past due to a lack of cash. She now ensures to keep small amounts in her wallet for tipping delivery workers and others. Some businesses have recognized the need to facilitate tipping through their platforms. Gyanendra Prasad Kar, Founder of Indian Delights, mentioned that applications and card swiping machines now include tipping options to make it easier for customers to tip the staff.
However, Rohit, a waiter at Indian Delights, highlighted a potential downside to the digital tipping system where customers may end up tipping differently than they would with cash. He explained that in the past, customers would often set aside the change received after billing as a tip, which is not the same with digital tipping. In response to this issue, businesses can prompt customers to tip through clear messaging on their payment systems, menus, or at the restaurant to remind them to tip their waiters.
Recently, a technical outage in the UAE forced many residents to revert to cash for daily transactions, highlighting the importance of keeping cash on hand. The incident disrupted various sectors, making it impossible for people to shop, refill their tanks, or pay bills digitally. Some residents realized the significance of having cash readily available for emergencies and transactions. The event served as a wake-up call for individuals regarding the necessity of having physical cash even in a predominantly digital world.
