SCVNGR-created LevelUp announced today that it has 500,000 users, which it says validates its unconventional approach to point of sale payments.

LevelUp’s system allows smartphone users to make purchases by displaying a quick-response (QR) code on the phone's screen. The merchant scans the code with a special reader. LevelUp doesn't charge merchants transaction fees, but instead makes money on an attached system for attracting new business.

“What we’re doing is trying to engineer a revolution, to totally upend the traditional way to pay,” says Seth Priebatsch, the company's chief ninja (CEO), in a Nov. 28 press release.

Though LevelUp's pricing is disruptive, it has built its audience by working with conventional payment companies such as Merchant Warehouse and Heartland Payment Systems. 

Compelling consumers to adopt mobile payments is LevelUp’s main focus. The company now needs to take its app mainstream since the early adopters have already been captured, it says in the release.

“As it stands, we think we’ve created some pretty compelling reasons for merchants and consumers to pick LevelUp over any other payment option, whether that be mobile, credit card or even cash,” Priebatsch says.

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