Stockholm consumers highest tippers in Sweden favouring electronic payments, says survey

  • Posted by Talking Payments
  • October 17, 2013 3:12:10 PM BST
A new survey has found that although Swedes are usually generous with the tips they give, frequency varies greatly and is dependent on both location and income.

Those from Smålänningar and the north were found to be the most frugal whilst Stockholm residents were happy to leave a generous tip.

The survey from Infact AS, conducted on behalf of Point, the leading provider of electronic payment solutions, shows that good service is the most common reason for people to tip waiters and taxi drivers, however Stockholm residents are more likely to leave gratuity than those in Småland and Norrland. Additionally, seven out of ten locals usually leave gratuity when eating at a restaurant, whilst only half of respondents in Småland and Norrland do the same.

Almost half of Stockholm residents (44.2%) said they tend to tip when they travel by taxi but in Småland and Norrland, the figure is much lower at 22.5% and 16.8% respectively.

There is a common prejudice in Sweden that Smalanders would be least likely to provide gratuity for good service but it is really about habit and opportunity says Bård Ljöstad, CEO of Point. In big cities, there are a greater variety of restaurants and more people take taxis.

The survey also shows that the likelihood of leaving a tip is dependent on age and income. In households with a total income over 750,000 Swedish Krona (£72,500) per year, leaving a gratuity is more commonplace, with 85% of respondents stating that they usually leave a tip when eating at a restaurant and 49% when they take a taxi. In comparison, from households with a total income below 250,000 Swedish Krona (£24,000) per year, only 45% of these give gratuity when in restaurants and 26.6% tip taxi drivers.

Age is also an influencing factor - of those between 18-29 years old who participated in the survey, it was found that 48.8% were accustomed to tipping at restaurants while 17.5% tipped taxi drivers. In those aged 45-64 years old, a massive 70.7% claim to tip at restaurants while 45.2% give a little extra on top of their taxi fares.

Overall, the majority of all Swedes questioned tend to give gratuity when eating out (63.7%). However when it comes to taxi fares, only 35.5% usually tip the driver. Most of the population still pay their tips with cash, but Stockholm residents are more likely than those in other locations to give gratuity via their debit or credit card.

New technologies and trends such as contactless payments have been implemented in major cities, meaning that electronically tipping is more accessible. “Adding gratuity via a debit card terminal is a simpler and safer way than handling cash and this is something we hope to further establish in Sweden,” says Bård Ljöstad.