Last week, I was really hungry after a run around the reservoir and decided to stop by Crazy Dough’s Pizza for a bite. I know, I know– ate all my burned calories back but all was not lost! After ordering my usual potato bacon cheddar personal pizza I proceeded to try and pay with Eaglebucks (pre-loaded on my ID) since I did not have my wallet. Foolish me, I somehow assumed all businesses around campus accepted them…but nonetheless, I wanted my pizza. And I was going to get it.
I must have stood there for a good 10 seconds thinking of my plans B and C and then… I was saved. I spotted an iPhone on a handsome stand on the counter next to the register, proudly advocating in bold words, “LevelUp.” I guessed it was some sort of mobile payment platform since I recalled hearing about their emergence a while back, and I was in luck–I had my phone! and I knew my credit card number + its details by heart (call me crazy, but I memorize all my credit/debit card numbers).
All I had to do was download the app on my phone, link my credit card and scan my generated LevelUp code to pay. Too easy.
Okay, maybe I’m late to the game here–apparently the application was launched by SCVNGR in March 2011 but I had never heard about it until now. LevelUp was originally launched exclusively in Boston and Philly as a pilot to solve the deadening excitement of the “local deals space.” Now LevelUp has teamed up with businesses in many major metropolitan areas around the US.
LevelUp even lets you leave tip! (with a simple swipe you can adjust your tip %). It also makes intuitive sense that you can search for business locations where you can pay with LevelUp as well.
The coolest thing in my opinion (and probably everyone else’s) are the credit amounts that a user gets when he/she tries paying with LevelUp at a new place. Additional credits/discounts can be earned after reaching a certain spent amount. This establishes a successful loyalty program that keeps people interested and coming back to use the application. I know I will.
And… maybe it was the $10 credit email they sent yesterday that provoked my blogging of LevelUp but honestly, I was just mindblown.
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Amazing! I feel myself slowly falling behind with technology — feeling like a grandpa. Thanks for spreading the word!
I’m in the same boat! Many of the food trucks are using Level Up and this is where I first saw it a few months ago. I thought it was some sort of rewards program only at first, but then I realized that the guy in front of me buying a sandwich never exchanged any other method of payment. I’m sure LevelUp charges a fee + usual credit/debit card fees probably apply. To Prof Kane’s comment, maybe this is the step beyond credit cards and the major issue will be getting past them (or adapting Level-Up’s model).
First, you are crazy for memorizing all your credit/debit card numbers. That means you don’t have enough of them.
Second, Level Up is a great company and business idea. We have a number of alumni of this class working there now, and we should hear more about them next week when @schneidermike comes to speak to the class. The challenge Level Up faces is getting companies to put the equipment in place to allow people to use it. If they can, there’s alot of money to be made and value to be added through their business model (what are credit cards but physical forms of digital information), a problem which Level Up solves.
Probably, and I only have three cards. Excited to hear about them! I think its a really innovative concept and really has the potential to change how consumers purchase products and ultimately our lives.
Wow I did not realize that Crazy Dough’s had that. That seems really convenient and if more places started accepting them, people could potentially stop bringing around their wallets. However, isn’t this a little similar to the new iOS 6’s passbook? I’m curious as to see how these two products will compete or if maybe Apple would acquire them.
I’ve actually never heard of the passbook (not really in sync with iOS stuff since the only Apple product I own is an iPod). That’s interesting though–I think many companies would want to acquire LevelUp. It definitely brings a lot of value and potential to change the payment process.
Nice blog post! I also like Kevin Lee’s respond to your blog! I think it’s a common theme to see innovative ideas from small start-ups like SCVNGER and then seeing big tech giants either acquiring it or make something better. Excited to see more companies accepting this though! I will now download this and get some pizza at Crazy Dough! #hungry
Very interesting. I love how technology just keeps advancing. In all honesty, I always thought we are being more innovative so that we can be lazier. So instead of having to swipe a credit card we can just scan a phone bar code. But I think after reading this I’ve changed my mind. There is tremendous value to be gained from these innovations a you pointed out, customer loyalty, discounts etc. I think this is only the start and there is a massive amount of technological innovation and integration yet to come.
And btw, now you will have to run again to burn off that pizza!
Awesome that it changed your mind in a positive light! You should definitely try the app sometime
LevelUp is an awesome application and I have used it many times! The beauty of this system is that you can go about your normal life and eat at all the places you love, and over time can accumulate enough credit that you get free food just for making your normal purchases. Following with their SCVNGR model of gaming applications, paying for your food now becomes a strategic game that you strive to conquer. Each time you pay with LevelUp at a store, a bar fills up on the screen showing how many more payment you need to make until you unlock more free credit. Human naturally love progress bars, and once they see one, they need to conquer it an fill it as soon as possible. Ever notice the progress bar on LinkedIn and how it will NEVER reach 100%….yeah, it drives me crazy too. Well with this application the progress bars never end, and once you fill it up, another one will appear showing you how many more purchases you need to make to unlock even greater credit.
Overall it is a great app and great company! Enjoy using it!
I totally agree, that’s what I thought when I first used it! Haha…oh yea, I think mine on LinkedIn is at 98%
Great post, but I am even more blown away that your know all of your CC information. Your story is an extreme example of what LevelUp is trying to do for us all, remove wallets from the payment system. Just as the smartphone has helped organize our lives in so many ways, soon they will ideally organize all of our payments and rewards. I personally love the Starbucks app linked to my card that collects my rewards. Its only downfall is that when I earn a free drink, a voucher is still mailed to me. Archaic.
Thanks, and I think people misunderstood when I said I memorize all of them. I don’t actually go out of my way to memorize haha, I just start remembering the number sequences after typing them in for online purchases after a while.
I also have the app (& goldcard). They actually changed their policy–it’s now 12 drinks to get 1 free and they’re discontinuing syrup discounts (noooooooooooooooooo!). They’re also loading the free drink right onto member accounts so no more postcards!
random thought: Doesn’t this in a way make it slightly safer to pay for things, or at least not lose things? If i don’t have bring my wallet around, I don’t run the risk of physically losing/misplacing/forgetting my card. Just a random benefit I thought of when I was reading this (I actually didn’t really have much of an idea of what level up is before reading this).
Also, I kind of wish i could remember my credit card numbers… I guess i just have a bad memory.
Exactly! Just another benefit of using LevelUp.
This sounds like a really interesting idea that i don’t know too much about. Given my history of losing things, or maybe i’m just old fashioned, i don’t know how ready i am to having my credit card and phone all in one spot, but as technologies improve their is no reason for this to not be the norm in a short number of years. Their is really nothing on the market that i know of that has anything offered like this so it will be cool to see how major credit cards adapt to this new industry and if they let tech companies run with it or try to step into the field on their own.
Interesting post. Have you ever heard about Square? It is a credit card reader that attaches to your iPhone so that you can accept payments/make payments on the go. They have even gone as far as creating a “Pay with Square” app, which allows you to make payments via your phone. I think that while Square is a direct competitor, LevelUp has found a way to leverage social gaming to make purchases more of an addictive game than a credit card swipe. If Square learns from LevelUp, I think it will be an unstoppable force. Both companies need to find a way to get us to ditch our cards all together, and get excited about using our phone as a wallet.
Yes, I believe I’ve seen it attached to an iPhone before! Didn’t think about it competing against LevelUp but it probably is a direct competitor. I also agree that the gaming aspect definitely plays into motivation for users but again, there is the issue of security and having your credit card linked directly to the application.
Nice post! I have heard of an app like this, I can’t remember if it was LevelUp. I don’t have a smartphone so I don’t really know how this works but if someone stole your phone would they have access to all your stored credit card information? Someone else mentioned that it would be better to have LevelUp on your phone rather than a wallet in case your wallet gets stolen but couldn’t you run into the same problem?
While I still think LevelUp is a good idea I ‘d have to say I think it would lead to more spending problems for consumers. Like Jane mentioned it turns shopping into a game but I think people would be less hesitant to spend money if it was simple as scanning your iPhone and becoming more inclined to spend in order to get rewarded, positive reinforcement. It would even less of a hassle than pulling out your wallet because I know that for me at least I am always holding my phone in my hand. If I have to think and pull out my wallet to pay for something I’m more hesitant but if my phone’s already out I probably wouldn’t put that much extra though into spending.