New cashless solutions for tipping car guards and petrol attendants in South Africa

Pick n Pay has launched a new system to allow car guards to continue receiving tips in an age when motorists no longer carry cash.

The vast majority of payments in South Africa are now made electronically, which has negatively impacted services that typically rely on small cash payments, such as car guards.

In response, Pick n Pay has rolled out an initiative where customers can buy “appreciation vouchers” that can be given to car guards as tips.

These vouchers are sold in R5, R10, and R20 denominations that can then be redeemed at Pick n Pay stores.

“The vouchers can be purchased at till points at Pick n Pay stores nationwide and given to anyone as a token of appreciation,” the company explained.

The nationwide rollout of this programme follows the successful implementation of a pilot at one of its Cape Town stores, which started selling R5 vouchers to give as tips, according to BusinessTech.

“While cashless payments are convenient for consumers, they can create challenges when people want to tip but no longer carry cash, and the recipient cannot accept digital payments, such as QR code payments,” the company said.

According to a study by the South African Reserve Bank (SARB), roughly 29% of respondents prefer to make payments exclusively electronically.

Another 31% of respondents said they prefer digital transactions but are comfortable using cash, while 19% exclusively prefer cash.

Pick n Pay said the new appreciation voucher initiative was intended to assist customers who no longer use cash.

“Appreciation Vouchers give customers another way to say thank you when they don’t have cash on hand,” it said.

“For customers who want to recognise the people who help them throughout the day, the voucher offers a practical alternative to cash – and another way to say thank you.”

The vouchers are valid for three years from the time they are issued and do not have to be redeemed at the same store where they were purchased.

They cannot be exchanged for cash, and each voucher must be fully redeemed in a single transaction, meaning they cannot provide change.

“No change is given, and vouchers cannot be exchanged for cash. Lost vouchers cannot be reprinted, so customers should keep them safe,” said the retailer.

Petrol stations going cashless

In 2024, Sasol launched a new digital tipping solution across its forecourts to address a similar issue where motorists did not have cash on hand to tip petrol attendants.

The initiative, known as “Tipped,” allows customers to tip pump attendants using their smartphones, making the process fast and convenient for station visitors.

The system uses a QR code that attendants can present to customers while they are at the pump. The driver can then scan the code and pay a tip directly from a digital wallet.

It operates on the Masterpass payment rail and supports mobile banking apps from most major South African banks, as well as digital wallet services such as SnapScan, Zapper, Spot, Telkom Pay, and VodaPay.

Forecourt staff are required to present proof of identification before they can join the Tipped onboarding process.

Once they are enrolled in the system, they can use the associated smartphone app to transfer money to their bank accounts and earn cashback rewards at affiliated stores.

“Partnering with Tipped aligns with our strategy at a time when our customers are embracing digital payments,” said Zanele Hadebe, Vice-President Strategic Marketing for Sasol Energy Marketing & Sales.

The system is also seen as a security measure, as it reduces the amount of cash on site, making forecourt employees less of a target for criminals.