Tipped workers looking to grow their investments now have a new automated option.
About Acorns Invest My Tips:
The popular micro-investing app Acorns is launching a new feature aimed at tip earners. With Invest My Tips, workers can have their tips automatically invested. As with Acorns’ signature Round-Ups feature, users can choose from a variety of diversified portfolios that match customers’ goals and risk tolerance.
To get started with Invest My Tips, earners can join Acorns and set up their account. Then, they can utilize a personalized QR code in the app or order complimentary QR code stickers (which Acorns recommends be used at stations or registers). When customers scan these QR codes, they’ll be able to tip using Apple Pay, Google Pay, or card payments. Importantly, customers do not need to have an Acorns account in order to tip. Not only will 100% of tips go directly to workers’ Invest accounts, but Acorns will also add a 1% match on eligible invested tips.
To launch this feature, Acorns is partnering with SQUIRE to bring the feature to barbershops and salons. Additionally, the company is working with VicBlends, which will feature Invest My Tips on its social media accounts.
Looking at the details, tips between $5 and $250 are eligible for this feature. A daily cap of $1,000 and a monthly cap of $7,500 are also in place. Also, the 1% match is capped at $75 per quarter and is paid quarterly. An active Acorns account is required, with plans starting at $4 a month.
What They’re Saying:
Commenting on the new feature, Acorns CEO Noah Kerner said, “We started Acorns with a simple idea: everyone should have access to the real tools of wealth-making, even if they’re starting with just spare change. Invest My Tips expands on that idea by turning everyday tips into an opportunity to automatically invest in the future.”
My Thoughts:
I love this idea… but, unfortunately, I fear that the actual functionality will severely limit the number of workers who can participate. I highly doubt that major chains are going to allow employees to solicit tips using their own QR codes. And, even if they do work for smaller, independent businesses, I feel as though getting customers to tip in a manner separate from their regular payment is a big ask.
Maybe I’m wrong, and this is all easier than it seems, but I think there’s a good reason why both of the businesses mentioned so far are barber shops. To me, that’s really the ideal medium for this.
Nevertheless, I do hope that more people can take advantage of this feature (and the 1% match). For those who can’t, Acorns may still be a good idea — you may just need to direct your earmarked tips to your investment account via other means.
