A POS-based app designed specifically for the bar and hospitality industry has been launched in Australia.

CLIPP mobile bar tab app allow consumers to securely open, view, share and pay for a bar tab via their smartphone (iPhone, Android or Blackberry10).

Developed by Greg Taylor, creator of eCoffeeCard app, which now operates across 1,600 cafes and has 230,000 users internationally, CLIPP integrates directly to existing point-of-sale systems and uses technology to provide a secure payment option for running a bar tab, eliminating the risk of fraud.

Customers present their tab number on their smartphone to staff, which is verified by name and purchaser photo. An itemised tab can be viewed at any time and push notifications are sent to the customer every time a new item is added to the tab.

“Key to making this work is the integration with POS companies. We have now partnered up with five of the biggest POS companies in the country. The reason for this is because for customers we want to replicate an existing process and not introduce a process. We asked ourselves how can we streamline what we want do that does not need the introduction of new hardware or change consumer behaviour,” Taylor told RetailBiz.

“So the benefits for consumers here is they don’t have to hand over their credit card or licence. So this means for the venue a much quick process and they can just concentrate on serving drinks to customers.”

Tabs are closed automatically when the customer is 500m from the venue and are emailed a tax invoice. Taylor said by providing services like this it gives a lot of transparency to the transaction process, which is what consumers are after.

On top of offering customers an easier payment option, CLIPP also runs as a loyalty program. For every $1 consumers spend on their tab they earn a point, which can then be used at any venue with the CLIPP technology. At the same time, vendors will have access to customer profiles and data, which will allow them to remarket to customers at a granule level.

For example, vendors can offer deals to customers who are at the time bar in real-time or push notifications to them to attract them back into the bar.

“We say to a venue owner opening a tab is guaranteed to get more money. We call this hyperbolic discounting where people will spend more money knowing they won’t have to pay for it until later,” he said.

“In terms of building database however there’s nothing more important than connecting with your customers. Not only will CLIPP encourage customers to spend money, it will also mean vendors will have access to a customer’s profile. This is invaluable tangible data for venues for how they can decide what offers they want to push out.”