|Back to main|
Heartland Partners with LevelUp - Analyst Blog
3/22/2013 3:22:00 PM
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.
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 support.
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.
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 currently carries a Zacks Rank #3 (Hold). Among others from the industry, Alliance Data Systems Corp. ( ADS ), Fiserv Inc. ( FISV ) and Vantiv Inc. ( VNTV ) carry a favorable Zacks Rank #2 (Buy) and are worth noting.
ALLIANCE DATA (ADS): Free Stock Analysis Report
AMER EXPRESS CO (AXP): Free Stock Analysis Report
DISCOVER FIN SV (DFS): Free Stock Analysis Report
FISERV INC (FISV): Free Stock Analysis Report
HEARTLAND PAYMT (HPY): Free Stock Analysis Report
MASTERCARD INC (MA): Free Stock Analysis Report
VISA INC-A (V): Free Stock Analysis Report
VANTIV INC-A (VNTV): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research