One way that mobile credit card terminal startup companies are attempting to attract a wider audience is by offering merchants products for free.
The LevelUp platform is just one example of this, giving thousands of businesses their hardware for free and making them pay 2 percent for interchange fees. The smartphone-based systems work by having diners download an app that will allow them pay through the device.
Seth Priebatsch, spokesman for SCVNGR, which produces LevelUp, said that it was hoping that its system would benefit the companies that used it, and that it was already having a major impact at many locations.
“LevelUp is skipping this ‘race to the bottom’ happening between the major payments companies and leading the way by providing real value beyond the transaction,” Priebatsch told the source.
LevelUp faces some stiff competition from brands including Square. The company recently made headlines after it announced it was illuminating payment processing fees for retailers with $250,000 in transactions or less, instead charging a flat fee.Back To Blog