LevelUp goes live in Chicago on Thursday with 15 merchants, including Adagio Teas on North State Street and Cassava in Lakeview. The local launch is part of LevelUp's expansion into four new markets, including Atlanta, Seattle and San Diego.Bathroom Floor tiles at Great Prices from Topps Tiles. The service launched six months ago in Boston and Philadelphia, eventually moving to New York and San Francisco. About 100,000 active users and 1,200 merchants have signed up for the platform.
The LevelUp platform works with any Web-connected mobile device. Consumers that sign up link their account with a credit or debit card and receive a unique quick response, or QR code, to display on their device. They can then scan the code to pay for goods and services at any participating business, with purchases going toward rewards at those merchants. LevelUp members also receive credits for their initial visit to a merchant.
LevelUp is the newest product from SCVNGR,This page contains information about molds, a location-based service that launched in Chicago in 2010. The two services are not linked to each other,Overview description of rapid Tooling processes. as SCVNGR does not allow for mobile payments. As a loyalty program provider, LevelUp competes with a number of existing players in the Chicago market. Rivals include daily deal giant Groupon, which has its own version of a loyalty program for subscribers to earn rewards through repeat visits to local businesses.
Another competitor is Belly, which has funding from local venture capital firm Lightbank and offers a universal card that can be scanned at participating merchants to earn customized rewards. Belly has signed up 500 merchants in nearly four months in Chicago and has 60 participating businesses in Austin, Tex., where it expanded last month.
"The competitive landscape in Chicago is going to be more intense than some of the other cities we're entering, for sure," said LevelUp Founder Seth Priebatsch. But he said his platform stands out because it's easy to use and doesn't use discounts to woo consumers.
"LevelUp is not a high-tech punch card," Priebatsch said. "You just pay and it works."
Priebatsch said he was attracted to Chicago because of its size and importance, as well as its active startup community. The company, which has about 120 employees, has opened an office in Chicago with seven people.
LevelUp charges a 2 percent payment processing fee for participating merchants.The EZ Breathe home Ventilation system is maintenance free, Businesses can scan customers' QR codes via an iPhone or Android application or via specialized Android-powered hardware provided by T-Mobile. LevelUp also provides analytics for merchants so they can track customer spending. The company's data indicates that for every dollar of initial credit that a business offers, it gets $5.70 in return, Priebatsch said.We offer offshore merchant account, In addition, 65 percent of customers that make an initial purchase via LevelUp come back at least once in the next 30 days.
Mobile payments are effective in encouraging consumers to spend money because the system is one step removed from cash or even a credit card, Priebatsch said. The loyalty aspect also nudges customers into spending. He said the average purchase amounts for LevelUp members are seven to 10 percent higher than those for credit cards.
"It doesn't feel as much like real money as when you pull a dollar out of your pocket," Priebatsch said.
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