The team of SCVNGR, a real world gaming and location app, launched LevelUp: a service that combines mobile payments with loyalty and reward programs. After an initial trial period in Boston and Philadelphia, the service now is also available in San Francisco and New York.

LevelUp users have to download a smartphone app and link it to a credit or debit card. The app generates a personal QR code. In order to pay and earn deals with LevelUp, the unique QR code gets scanned by the merchant. Instead of buying a deal in advance, offers are redeemed automatically when paying with LevelUp. If the customer keeps coming back and pays with LevelUp he or she will level up and unlock better deals over time.

“The deals-rewards space still lacks one huge value proposition for merchants: the tools and insight to know whether or not their marketing efforts are actually creating new, loyal customers. Instead of hoping — but not knowing — that an incentive brings a customer back again, LevelUp brings the loyalty and transaction together, and empowers merchants to reward customers, both new and repeat, for their business,” said Seth Priebatsch, Founder and CEO of LevelUp and SCVNGR.