• EFTPOS & Point of Sale Solutions

Jar Half Full: Tipping is on the Rise in Australia, Zeller Data Reveals

4 min. read04.10.2023
By Team Zeller

Despite a cost of living crisis, customers are rewarding great service more than ever before.

Whether it’s a conscious effort, or whether it’s a product of the simpler, cashless way in which we now pay: the digital tip jar is fuller than before. With over 35,000 businesses across the country using Zeller Terminal, we’ve analysed millions of transactions and the proof is in the payments. Australians are not only tipping more frequently, but the amount they are tipping has significantly increased since last year. It’s a heartening revelation that demonstrates that even faced with a challenging economy, Australians are still willing to shell out more to give staff in the service industry a helping hand.

Aussies love tipping, and not just for footy.

Zeller data shows that the average Australian tip value has increased by 12% since last year, growing from $16.05 to $17.93. At a time when discretionary spending is down, it’s a surprising result that shows the willingness of Australians to reward great service in times of need. What’s more, the number of tips has increased by a whopping 132% since January last year, demonstrating that the reflex to leave a tip is strongly on the rise.

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In tips, Melbourne pips Sydney.

For service providers working in Melbourne, there’s good news. The average tip value left by Melburnians surpassed those of their Sydney counterparts by an impressive 57%, averaging $18.57 in the southern city compared to $11.81 up north. It’s a trend that could be attributed to Melbourne’s historically strong dining culture, or greater cost of living pressures in Sydney.

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Zeller Terminal, a front-of-house team player.

For Matteo Neviani, general manager of Trattoria Emilia in Melbourne’s CBD, the increase in tips hasn’t gone unnoticed. "We've observed a significant increase in the tips we've received recently.” The busy Italian restaurant has indeed seen a 30% jump in their tips since March this year and Matteo puts it down to a growing trend among Australian diners as well as a smoother payment process delivered by Zeller Terminal, “It’s a more streamlined customer experience,” he says.

Similarly, at Clover Wine Bar on Swan Street, Richmond, owner Lyndon Kubis has also seen a remarkable increase in tips since switching to Zeller, “Zeller Terminal has a very inviting interface to want to tip. So it certainly welcomes tipping,” he explains.

Regional Australia joins the trend.

While the generosity of tippers is more pronounced in metro areas, the growing trend in tipping appears to be extending well beyond the major ring roads. On average, customers in bigger cities tip 12% more in value than those in regional areas, with metro diners offering a gratuity of $18.08, compared to $16.07 in rural areas. However, since last year, diners in regional Australia have increased their average tip value by an astounding 79% year on year, from $9 to $16.07.

In Airlie Beach, Queensland, Brittany Yanapa, who works as a venue manager at restaurant La Tabella says it’s got a lot to do with the return of tourism as well as their EFTPOS process: “We’ve noticed an upswing in tipping” she says, “We put it down to the influx of tourists as well as the user-friendly nature of our Zeller EFTPOS Terminals. It guides customers through the tipping process, and enhances the overall experience.”

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A tip off for the hospitality sector.

Taking a deeper dive into hospitality shows a diversification in Australian tipping culture. While table service venues are still those that receive the highest tips, with an average tip value of nearly $20 (representing an 8% increase since last year), takeaway restaurants are now also being rewarded for their service. This year, average tips for the take-out sector totalled $7.52, up 6% from last year. Meanwhile, at bars and clubs, tips were down by 23%, a trend shared with cafes where tips also declined by 19% since last year.

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For beauty, we’ll spend big.

Hairdressers, nail technicians and massage therapists must be doing something right because it’s the beauty sector that comes up at number one on the leaderboard of highest-tipped industries. This year, Australians left an average tip of 21% of the total bill after their beauty appointments, surpassing all other categories and experiencing a remarkable increase of 121% since last year. In second place, the overall hospitality sector saw its tips increase to an average of 7%, while the taxi and transport industry remained steady on 5%.

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Power to the people.

While tipping isn’t for everyone, we’re impressed to see a growing trend of Australians adding a gratuity to their bill to reward an outstanding customer experience. Zeller Terminal’s built-in tipping feature, which can be turned on or off right from the EFTPOS device, is a small but important feature that nurtures a culture of generosity, and incentivises servers and staff to elevate their customer service experience.

Want to find out more about Zeller Terminal?

Zeller Terminal: Your EFTPOS Payments Solution, and So Much More

Meet your newest recruit: a sleek, reliable multitasker that takes payments, processes sales, cuts costs, grows tips, splits bills, and boosts your brand. Once upon a time,  EFTPOS terminals did one thing: accept card payments. In 2024, they have become the beating heart of a business’s finances, incorporating myriad tools and features to help merchants not only deal with the increasing volume of card payments, but also make informed business decisions, deliver premium and branded customer service, and get you paid faster. Zeller Terminal is one such device that’s leading the way in payment technology in Australia. Integrated into Zeller’s financial ecosystem, which offers a  point-of-sale system ,  transaction account  and  savings account ,  debit cards  and  corporate cards , a  contact directory  and  mobile app , Zeller EFTPOS Terminal is a key component of an all-in-one system that gives businesses real-time visibility of their cash position, important sales insights, and near-instant access to their funds. So much more than an EFTPOS machine, Zeller Terminal is a key growth driver for your business, and below, we explain twelve reasons why. Top 12 benefits of Zeller Terminal 1. It saves your business money. Zeller Terminal is yours to own outright for the low cost of $99, or $199 if you choose Zeller Terminal 2, which comes with a built-in point-of-sale system. There are no monthly rental fees, no lock-in contracts, and no hidden costs. Once you start taking payments, you will only ever incur a 1.4% transaction fee for all card types – including AMEX – or 1.7% for over-the-phone transactions. Plus, with Zeller Terminal’s flexible surcharging capability, you can choose to pass on all or part of your merchant fee to the customer. Unlike many merchant services providers which lock you into surcharging for an added fee, Zeller’s zero-cost EFTPOS  option can be turned on, off, or customised at the press of a button. 2. It accepts every payment method. Zeller Terminal gives your customers the option to pay however is most convenient for them. To make payment, a customer can: tap their smartphone, watch, or other  NFC-enabled device  to the terminal tap their contactless debit and credit cards to the terminal insert a chip card into Zeller Terminal and, if needed, securely enter their PIN swipe their card and enter their PIN, or sign directly on the screen (available on Zeller Terminal 1 only) call you and read their card details over the phone 3. It simplifies checkout with a free, built-in point-of-sale system. Traditional point-of-sale software can be costly to growing businesses, which is why Zeller Terminal 2 incorporates a simple POS solution right into the hardware, for free:  Zeller POS Lite . Designed for micro, small, and mobile businesses, this easy-to-use POS solution records sales and delivers a fast and secure customer checkout experience. With Zeller POS Lite, you can: Manage a library of items directly on the terminal or via Zeller Dashboard or App Customise your product offering with modifiers and variants Design your home screen grid to allow quick access to frequently used items Generate itemised receipts which customers can receive via email, SMS, or QR code View detailed sales reports to understand what you are selling and when Create and manage discounts Get set up instantly – Zeller POS Lite comes automatically installed on Zeller Terminal 2 4. It boosts your brand with customisable receipts and screensavers. Zeller ensures your brand is central to the payment process by allowing you to customise both your receipts and your machine’s screensaver. Whether they’re printed or sent digitally as an email or SMS, Zeller receipts can incorporate a custom image at the top of the receipt, as well as business details, social media handles, a brief message or returns policy. Similarly, Zeller Terminal’s large digital screen can be customised with an image of your choice, allowing you to engage your customers with your brand while you scan their items or pull up their order on your point-of-sale. Much more than a simple payment device, Zeller Terminal is an innovative marketing tool that can be leveraged to instil your brand messaging. Customise your Terminal screensaver and your receipt to align with your brand. 5. It splits payments. Gone are the days of making your customers get out their phone calculator to figure out who owes what after a group meal. Zeller Terminal’s  Split Payments  functionality gives customers the option of splitting by custom value or by number of people. Not only is this more convenient for your patrons, but it speeds up the payment process, freeing up the EFTPOS terminal for it to be used by other staff. Additionally, by giving each individual customer the option to pay their share, it gives them all the opportunity to provide a tip. Everyone tips differently, so by giving more power to each customer, it is not only a more democratic process, it's likely to result in cumulatively greater tips for your business. 6. It settles the bill, tableside. Zeller Terminal’s  Pay at Table  feature is revolutionising the dining experience. Where before waitstaff would have to jostle between the diner’s table and the point-of-sale machine to settle a bill, Zeller Terminal now allows you to see total outstanding bills, take payments and close tables — all on one device. Rather than the customer paying at the counter or finalising the bill in the traditional, time-consuming manner, waitstaff can deliver the bill and the mobile payment device, all at the same time. The status of a table is updated in real time and synced across all machines, reducing human error and optimising the whole operation. 7. It makes processing refunds easy. Zeller Terminal supports both complete and partial refunds – and you, as a business owner, have the ability to restrict who can provide a customer with a refund. It’s an added level of protection for your business. Refunding a payment doesn’t cost your business anything; Zeller doesn’t charge any additional fees for refunding a customer. 7. It gives you real-time insights. Track key metrics from your Zeller Terminal in your own Zeller Dashboard or on  Zeller App . By providing powerful real-time data and a searchable transaction history, Zeller equips you with the tools you need to better manage cash flow, identify cost-saving opportunities and sales patterns. With most payment services providers, daily transaction information is unavailable until totals are tallied up at close of business — and important business information can only be found in a monthly merchant services statement. Having the ability to see how your business is performing at a glance enables you to quickly understand your short-term cash flow, progress sales targets to meet (and outperform) business objectives, and ultimately make smarter business decisions. 9. It gets you paid faster with same-day settlements. When you settle your funds into a Zeller Transaction Account, your day’s takings from Zeller Terminal will be deposited into your account the very same night, 365 days a year. If you choose to settle your funds into a third-party bank account, you will receive them the next business day. Speeding up the settlement process means you have access to your funds faster, helping to keep your cash flow healthy, and helping to avoid delays to wage payments or supply orders. 10. It can be controlled remotely. If your business operates across multiple locations, you need an easy way to manage your EFTPOS payment terminals. Every one of your Zeller Terminals can be controlled from your Zeller account, ensuring consistency across your entire operation. Update your staff permissions, enable and disable surcharging, update the information on your receipts, and more from one easy, online location. 11. It increases your tips. Zeller Terminal makes it easy for customers to leave a tip. This is particularly useful for hospitality businesses — you don’t have to enable the feature, but the functionality is there. You can configure your Zeller Terminal to provide a range of tipping options, either prompting a customer to leave a tip calculated on a percentage of their purchase or allowing them to enter a custom amount. This is a proven tactic, designed to grow tips for your business. 12. It reduces paper with digital and QR code receipts. A recent study* revealed that Australia produces 10.6 billion paper receipts annually, but because of their chemical coating, none of them can be recycled. With consumers and businesses becoming increasingly aware of their environmental footprint, many are choosing digital receipts as a convenient and sustainable alternative. Zeller Terminal embraces this step forward by offering customers the choice to have their receipts sent via email or SMS (available on both terminal models), or they can quickly scan a QR code which appears on-screen after the payment has been processed and download their receipt directly to their smartphone (Zeller Terminal 2 only). *‘Life Journey of an Average Receipt’ report, commissioned by Slyp, undertaken by the University of Technology Sydney (UTS). Plus protection for your business. Zeller uses end-to-end encryption and industry best practices to protect transactions from the time they are taken at the terminal to the time your money is received. Whether you choose to use an open or secured Wi-Fi connection or a mobile broadband-based connection, all the information Zeller processes is encrypted to our servers. Our team adheres to industry best practices in cybersecurity and threat management, constantly monitoring transactions for suspicious activity and blocking fraudulent transactions. When payment disputes occur, our team of experts deals with the bank for you, helping you avoid costly chargebacks. We’re always looking ahead. Our team of developers are hard at work, continuously building new functionality to give your business an edge. That's why, when you sign up for Zeller, there are no lock-in contracts or commitments. We know you’ll love our solution enough to never want to leave. Learn more about how  Zeller Terminal  can help your business grow by accepting every card payment, quickly and securely, for one low rate. By sharing your details with us, we may contact you from time to time. We promise we won’t bug you — and you can unsubscribe from communications at any time.

How to Use an EFTPOS Machine

An EFTPOS machine is an essential tool for modern businesses. EFTPOS (which stands for Electronic Funds Transfer at Point of Sale) machines accept credit and debit card transactions. A modern EFTPOS machine from a reliable payment services provider will capably handle this task, by sending transaction approvals and transferring funds between different systems. Then, the customers' funds are settled into your nominated business transaction account — ready for you to spend, reinvest in your business, or pay suppliers and employees. This is the bedrock of a functional EFTPOS machine. No matter what other features and services are offered, your business needs an EFTPOS terminal that is ready to process every customer’s electronic payment quickly, securely, and affordably. Understanding the basic EFTPOS functionality An EFTPOS machine facilitates the movement of funds from a customer’s account into your own. When you’re selling in-person, you require an EFTPOS machine in order to accept digital payments. Contactless payments are now the norm in Australia; without an EFTPOS machine, you’re narrowing your potential customer pool to those few Australians who still carry cash. Zeller Terminal accepts payments through various methods, including inserted, swiped, and contactless payments from cards or NFC-enabled devices, as well as MOTO payments . How do you enter a card number on a payment terminal? To enter a card number on a card machine, simply key in the card number, expiration date and Card Verification Value (CVV). These transactions are known as MOTO (short for Mail Order Telephone Order) payments . On Zeller Terminal, accepting a manually-entered card payment is easy — simply toggle the mode switch from Card to MOTO. The ability to manually enter card details provides you with a quick, convenient and secure way to accept payment from customers when they’re not with you in-person. Using advanced EFTPOS features A next-generation EFTPOS machine offers you functionality beyond just accepting payments. The best EFTPOS machines combine fast, reliable payment processing with valuable features that can help you grow your business, such as: enabling you to showcase your brand through receipts and screensavers. providing you with enhanced security on every transaction accepted. integrating with POS systems, or offering a free, built-in point-of-sale. automatically splitting transactions by amount, or by number of guests. prompting customers to add a tip at the end of a transaction. Keep reading to discover how to use an EFTPOS machine to grow your business, by leveraging Zeller Terminal’s advanced features. Showcasing your brand A receipt, whether printed or digital, is the perfect place to promote your business and deliver a memorable customer experience. No longer just for proof of purchase, your receipts can help you promote your business by: boosting brand awareness by giving you a place to showcase your logo. motivating customers to follow you on social media with links. building customer relationships with a custom note or message. minimising the risk of chargebacks by including helpful return information. Additionally, the best EFTPOS machines, like Zeller Terminal, enable you to add a custom screensaver to the display. This screensaver could include your business logo, or a promotional offer to display to customers when they’re making payment. You can also learn how to Use Zeller Receipts as a Marketing Tool here . Providing enhanced security As your business grows, it’s likely that you hire new staff members to accept payments with your EFTPOS terminal. Unfortunately in some circumstances, this can create a security risk to your business, and your customers. Zeller Terminal enables you to take control of who can access secure information and features from your EFTPOS machine — such as transaction information, issuing refunds, or updating terminal settings. By setting a secure PIN code on Zeller Terminal, you can immediately restrict access to specific features on your EFTPOS machine, helping to protect your business and enhance your security. Point-of-sale functionality and integrations A point-of-sale (POS) system enables you to create an item library, track inventory, build a shopping cart, accept payments from customers, and send an itemised receipt, in one seamless, fully integrated flow. POS systems are a modern alternative to the traditional cash register and can be run on computers, tablets, smartphones, and even EFTPOS terminals. Zeller POS Lite comes built-in free to Zeller Terminal 2, enabling you to build a robust item library that displays directly from your EFTPOS terminal or smartphone (via Zeller App). You can use Zeller POS Lite to manage items, add modifiers and attributes to products, and create detailed item reports to track what’s selling, and what’s not. Alternatively, a modern EFTPOS machine should also integrate directly with your existing POS system — whether you use a hospitality-based POS like Redcat , or a retail-focused system like Zii POS . Zeller Terminal integrates seamlessly with over 600 third-party POS systems, which you can find on the Zeller Partner Hub . Split transactions In many circumstances, such as in a restaurant or cafe, your customers may ask to split a payment across a number of people. This requires you to operate a modern EFTPOS terminal that will enable you to automatically split transactions, without your staff having to calculate the individual payment values manually or with a calculator. With Zeller Terminal, you have the option to split transactions directly from the device. Transactions can be divided by the number of guests evenly, or alternatively, every guest can choose a custom value to make payment for, until the entire transaction is complete. Prompting customers for tips If you’ve delivered a great customer service experience, customers may want to leave you a tip at the end of an EFTPOS transaction. EFTPOS tipping is increasingly common in service industries such as cafes and restaurants, so having an EFTPOS machine that automatically prompts customers to leave a tip is essential. EFTPOS terminals that are automatically enabled with a built-in tipping feature may lead to an increase in gratuity, benefitting your employees. In fact, modern EFTPOS machines like Zeller Terminal, which automatically prompt customers for gratuity at the end of a payment, have delivered an increase in tips by up to 30% . Why you need an EFTPOS machine We know, with certainty, that Australians prefer using debit and credit cards over notes and coins. Research from the Reserve Bank of Australia demonstrates the sharp decline of physical cash use: respondents under the age of 40 used cash for less than 15% of their payments in 2019. In 2016, cash accounted for 30% of their payments. Over the last five years, the number of ATMs across Australia has fallen 53.6% — making it difficult for those few consumers who still want to carry cash to do so. The world has gone digital, and as a result so have businesses. All of this is unlikely to come as a surprise, considering the obvious benefits of credit and debit cards: they’re simple, fast, secure, and generally easy to use. A customer just needs to tap, dip or swipe their card or mobile wallet to your terminal — without the need to handle cash. For this reason, having an EFTPOS machine is just as critical for your business operations as it is for your customers’ experience. The cards EFTPOS machines accept EFTPOS terminals accept both credit and debit cards. However, with advancements in technology come new ways to pay — meaning older terminals from traditional providers may not support the payment methods your customers prefer. When selecting the right EFTPOS machine for your business, it’s important to look for a terminal that will enable you to offer customers a broad range of payment processing options. How do your customers expect to be able to pay for the goods or services you provide? If you run a busy coffee shop in the CBD, your customers might want to use their mobile phone or smartwatch to pay for their morning caffeine hit. Your customers may even use lesser-known payment types that are growing in popularity. When choosing which EFTPOS machine is right for your business, set your sights on an EFTPOS terminal that accepts all of the major card networks (such as eftpos, Mastercard, Visa, American Express, and JCB) as well as other convenient payment methods your customers prefer to use (such as Apple Pay and Google Pay). Do EFTPOS machines need internet? An EFTPOS machine will use a wired or wireless internet connection to process payments. Modern terminals use SIM cards, making it possible for you to process transactions outside of Wi-Fi range (a must when customers expect to be able to pay at the table). However, best-in-class terminals will provide multiple connectivity options: a SIM card slot, as well as Wi-Fi connectivity. Business owners must also ensure that their EFTPOS terminal will connect to the available mobile network — with the 3G network shutdown rolling out across Australia, Zeller Terminal will reliably connect to 4G networks, too. Communication between the terminal, the card issuer, the processing bank, and the payment network requires reliable connectivity — but that doesn’t have to come from a traditional internet connection. Technology has evolved so you no longer need to have your terminal hardwired, sitting stationary by your register. Your payment tools should work wherever you do. How long does an EFTPOS transaction take? Every business owner wants to know how long an EFTPOS transaction takes. The time it takes to settle funds to your business bank account directly impacts cash flow and, by extension, your ability to grow your business. Funds accepted via Zeller Terminal are swept to your chosen Zeller Transaction Account nightly, available for spending instantly using your free Zeller Debit Card . For more information about the limitations of traditional banks, read Transaction Processing and Settlement: Why Do Banks Take so Long? Finding the best EFTPOS machine for your business needs EFTPOS machines make payments easy for customers and business owners alike. Customers can quickly pay for their goods or services and get on with their day, while your business can cut down on wait times and efficiently provide great service to everyone making a purchase. Finding a trusted, secure and innovative EFTPOS provider should be a top priority for your business. Zeller enables merchants to accept every payment, accelerate cash flow, and quickly manage and access funds. Learn more about how Zeller Terminal can help your business. Interested in learning more? Find out how EFTPOS Transactions Work here.

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