The Clipp app enables drinkers in pubs to open and then settle a tab to pay for drinks and snacks ­electronically without any extra costs than traditional methods. Clipp, in practical terms, replaces a bank as the merchant in the ­transaction system. "We're effectively the merchant," Mr Taylor said. He said the shift to a cashless economy was speeding up, in particular in the pubs and bars sector, where operators are handling large amounts of cash from thousands of smaller transactions each day. Money has to be counted, there are sometimes security concerns and then the funds need to be physically transported to a bank. "There's a lot of hidden costs with that," he said. Mr Taylor said users of the Clipp app aren't hit with any extra costs. It is free to download and then use. Clipp makes its money by acting as the merchant in the transaction system. The deal with Australia's biggest hotel operator is a major boost for Clipp, with its payments app already up and running in 280 different pubs and bars, many of them run by small, ­independent operators.

http://www.smh.com.au/business/smartphone-app-deal-helps-woolworths8217-alh-pubs-move-towards-cashless-system-20141007-10r42l.html