When retailers decide to use a mobile system for merchant services, more often than not they will be forced to pay a service fee. However, payment app creator LevelUp said it would not charge merchants any fee to use its service.
Venture Beat reports that the company, a subsidiary of Boston-based SCVNGR, will not charge its 200,000 users and 3,000 retailers for use of its quick response code system. SCVNGR CEO Seth Priebatsch said that his firm’s elimination of the fee was likely to start an industry-wide trend.
“We might be the first to hit an Interchange zero-stable ecosystem, but we’re definitely not going to be the last,” Priebatsch told the website. “By firing the first shot … I’m hoping we kick off a cool space race for people to try and invent the value that can be added to the merchant or consumer, above and beyond the payment, that makes Interchange a thing of the past.”
While many use the system for purchases around the world, there has been some concern raised over its security. In a recent meeting with lawmakers, Federal Reserve Board of Governor’s associate general counsel Stephanie Martin said that laws regulated credit cards had not made provisions for mobile payments.Back To Blog