MiPayWay, which says it has created a mobile payment system for tipping without cash, announced that it has begun beta testing. The system comprises two components: 1) a Bluetooth beacon for the recipient; and 2) the mobile app. The mobile app is now available for download from both iTunes and Google Play, and the beacon may be ordered now from the company's website.

"Whether it's your shuttle bus driver, valet driver or the coffee shop performer, we have all encountered situations where we received outstanding service or entertainment, but were unable to tip simply because we had no cash. That's the problem we have solved," Dick Butler, president and co-founder of MiPayWay, said in a press release.

How it works

Using patent-pending Internet of Things technology, the MiPayWay mobile tipping app identifies nearby individuals or groups who have registered as recipients and who have the MiPayWay low-energy Bluetooth beacon. 

When the app user is ready to send a gratuity to the recipient, he or she simply selects the recipient, enters the amount, enters a secure PIN, and then taps the smartphone screen, according to the announcement. This initiates a secure behind-the-scenes transaction between the tipper and recipient's PayPal accounts, requiring no account or personally identifiable information to pass among beacons, mobile devices, or individuals. 

The beacon itself is a small, self-contained durable plastic square that may be carried on a keychain, adhered to furniture or placed inside a vehicle. It emits a low-energy Bluetooth signal that modern smartphones can detect up to 200 feet away. Because the beacon is used only to identify the recipient, and not in the transaction itself, it cannot be used by someone else to commit fraud in case of loss or theft.

The company has identified individuals and organizations for its initial beta testing in the Raleigh-Durham, North Carolina, and Austin, Texas, regions. While focused on hospitality, catering, tourism, and live performance for its initial tests, MiPayWay is actively seeking to expand the beta program.

"We have had great feedback from users during the development process, and we are now ready to put all our hard work to the test in the real world," said Brian Bell, CEO and co-founder of MiPayWay. "We believe we have tapped into a truly unmet need in an increasingly cashless culture. People inherently want to show their gratitude."