Monday 23 February 2015

How Technology Is Tricking You Into Tipping More

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Editor’s Note: Nir Eyal is the bestselling author of Hooked: How to Build Habit-Forming Products and blogs about the psychology of products at NirAndFar.com. Join Nir at this year’s Habit Summit at Stanford on March 24th, 2015.
My taxi pulled up to the hotel. I got out my credit card and prepared to pay for the ride. The journey was pleasant enough but little did I know I was about to encounter a bit of psychological trickery designed to get me to pay more for the lift. Chances are you’re paying more, too.
Digital payment systems use subtle tactics to increase tips, and while it’s certainly good for hard-working service workers, it may not be so good for your wallet.
A new report by the tech research firm Software Advice discovered that digital point-of-sale terminals, like the one in my cab, increase the frequency and amount of tips left by customers. What’s the secret behind how these manipulative machines get us to pony up?
The Power of Defaults
A recent Iowa State study cites a mobile payment company that effectively

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