Heartland Payment Systems
) and LevelUp, the largest mobile payments and loyalty network in
the United States have inked a deal to shift all payments from
conventional modes to mobile in 2013.
The partnership will allow LevelUp to access Heartland's
extensive sales force, huge customer base of over 250,000
merchants. This will help LevelUp expand its mobile payment and
loyalty platform, and thus increase its growth rate by acquiring
Additionally, the strategic association will also co-promote
white-labeled apps for businesses with multiple locations. The
white-label solutions of LevelUp helps businesses to provide a
fully branded mobile payment and loyalty solution including all
LevelUp features such as zero payment processing fees,
world-class analytics, powerful campaigns and technical
On the other hand the partnership will enhance Heartland's
multi-site authorization and settlement network. Heartland's
average response time will be reduced to less than a second when
a LevelUp transaction is made through a
) card. Currently, Heartland is capable of processing 3000
transactions per second.
Heartland expects the liaison to facilitate merchants by enabling
them to meet the payment demands of consumers thereby increasing
their bottom lines. Consumers will also benefit from the deal, as
it will provide them a cost effective and time saving payment
option. They will be able to make payments at their favorite
merchants by using their iPhone, Android or Windows phones.
LevelUp has also integrated its technology into Heartland's E3
end-to-end encryption terminal/POS to protect payment data
permanently. As a result, merchants can use E3 for secure mobile
transactions. On the other hand consumers will likely benefit
from this integration due to the confidentiality of their payment
information. Heartland will also use its tokenization technology
to replace card data with a token, which will replace information
related to payments.
Heartland and LevelUp will absorb 25% of the development cost
of a white-labeled iPhone and Android app for merchants with 10
or more locations for whom the company will process payments.
This will increase the acceptance of mobile payments at chain
merchants nationally. Additionally, it will promote Heartland's
services thereby enhancing its customer base.
Mobile payments have already been in use for the past few
years. However, the scale of mobile usage for making payments is
much small compared with other conventional modes. The joint
venture between Heartland and LevelUp thus aims at accelerating
the acceptance of the mobile payment mode, while at the same time
making it the mainstream mode of payment.
Heartland has undertaken a number of strategies to increase the
usage of mobiles for making payments. Previously in Oct 2012,
Heartland launched Mobuyle, a mobile payment solution for Apple
iOS-based mobile devices. This allowed merchants to accept
credit, debit, and gift card payments on the iPhone, iPad, and
Heartland currently carries a Zacks Rank #3 (Hold). Among
others from the industry,
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