digital tipping

The ability for customers to tip someone for services rendered using handheld technology.

Historical perspective: Introduced by Starbucks in early 2014, the coffee chain's app allows customers to pay with a swipe of their smartphone, a method which Starbucks says is used in about one in ten transactions. A new Starbucks app allows a customer to add on a tip for good service, ranging from 50 cents to $2.