LevelUp .. is launching at the KFC Yum Center in Louisville, where users can pay with LevelUp at 200 concession stands.... Centerplate [the arena's owners] is taking advantage of LevelUp’s free interchange fees, which means they don’t pay the traditional transaction fees on purchases through LevelUp. They instead will run paid user acquisition and loyalty campaigns through LevelUp. So a new user will be able to get a $2 credit toward their first purchase while existing users can get discounts for purchasing larger amounts of food and beverage.
Therese's comment: This is also Square's stated strategy. There isn't a huge money to be made on top of the payment processing chain. Running loyalty and customer acquisition programs is a btter margin business.
Via Therese Torris