LevelUp raises an additional $9m
LevelUp, a mobile payment app created by Boston start-up Scvngr, announced Thursday that it has raised an additional $9 million in venture capital from T-Venture, Deutsche Telecom’s venture capital arm, as well as from other individual investors.
The additional $9 million brings the total that LevelUp has raised in its Series D round to just over $21 million. Since 2008, Scvngr and LevelUp have raised $41 million in venture funding.
LevelUp said it will use the new funding to fuel both product development and the rapid expansion of its Interchange Zero mobile payment network.
Earlier this month, LevelUp said that it would eliminate the fees that it once charged merchants that use its network.
LevelUp’s smartphone app works by displaying a bar code that is linked to a user’s credit card. A merchant who has installed a LevelUp device can scan the bar code to process the payment. LevelUp was previously charging merchants a processing fee of 2 percent of each purchase.
LevelUp also offers services that allow merchants to run smartphone marketing and promotional campaigns. LevelUp hopes to make money by charging merchants for those services.
LevelUp is backed by venture investments from Google Ventures, Balderton Capital, Continental Advisors, Highland Capital, and Transmedia Capital.
LevelUp is competing in a crowded field of mobile payment services, including Google Wallet, PayPal, and Square. The traditional credit card companies — Visa, MasterCard, and American Express — are also offering new payment systems.Chris Reidy can be reached at email@example.com.