Heartland Partners with LevelUp - Analyst Blog
22 Marzo 2013 - 4:26PM
Zacks
Heartland Payment Systems (HPY) and LevelUp,
the largest mobile payments and loyalty network in the United
States have inked a deal to shift all payments from conventional
modes to mobile in 2013.
The partnership will allow LevelUp to access Heartland’s extensive
sales force, huge customer base of over 250,000 merchants. This
will help LevelUp expand its mobile payment and loyalty platform,
and thus increase its growth rate by acquiring more merchants.
Additionally, the strategic association will also co-promote
white-labeled apps for businesses with multiple locations. The
white-label solutions of LevelUp helps businesses to provide a
fully branded mobile payment and loyalty solution including all
LevelUp features such as zero payment processing fees, world-class
analytics, powerful campaigns and technical support.
On the other hand the partnership will enhance Heartland’s
multi-site authorization and settlement network. Heartland’s
average response time will be reduced to less than a second when a
LevelUp transaction is made through a MasterCard
(MA), Visa (V), American Express
(AXP) or Discover (DFS) card. Currently, Heartland
is capable of processing 3000 transactions per second.
Heartland expects the liaison to facilitate merchants by enabling
them to meet the payment demands of consumers thereby increasing
their bottom lines. Consumers will also benefit from the deal, as
it will provide them a cost effective and time saving payment
option. They will be able to make payments at their favorite
merchants by using their iPhone, Android or Windows phones.
LevelUp has also integrated its technology into Heartland’s E3
end-to-end encryption terminal/POS to protect payment data
permanently. As a result, merchants can use E3 for secure mobile
transactions. On the other hand consumers will likely benefit from
this integration due to the confidentiality of their payment
information. Heartland will also use its tokenization technology to
replace card data with a token, which will replace information
related to payments.
Heartland and LevelUp will absorb 25% of the development cost of
a white-labeled iPhone and Android app for merchants with 10 or
more locations for whom the company will process payments. This
will increase the acceptance of mobile payments at chain merchants
nationally. Additionally, it will promote Heartland's services
thereby enhancing its customer base.
Mobile payments have already been in use for the past few years.
However, the scale of mobile usage for making payments is much
small compared with other conventional modes. The joint venture
between Heartland and LevelUp thus aims at accelerating the
acceptance of the mobile payment mode, while at the same time
making it the mainstream mode of payment.
Heartland has undertaken a number of strategies to increase the
usage of mobiles for making payments. Previously in Oct 2012,
Heartland launched Mobuyle, a mobile payment solution for Apple
iOS-based mobile devices. This allowed merchants to accept credit,
debit, and gift card payments on the iPhone, iPad, and iPod
touch.
Heartland currently carries a Zacks Rank #3 (Hold). Among others
from the industry, Alliance Data Systems Corp.
(ADS), Fiserv Inc. (FISV) and Vantiv
Inc. (VNTV) carry a favorable Zacks Rank #2 (Buy) and are
worth noting.
ALLIANCE DATA (ADS): Free Stock Analysis Report
AMER EXPRESS CO (AXP): Free Stock Analysis Report
DISCOVER FIN SV (DFS): Free Stock Analysis Report
FISERV INC (FISV): Free Stock Analysis Report
HEARTLAND PAYMT (HPY): Free Stock Analysis Report
MASTERCARD INC (MA): Free Stock Analysis Report
VISA INC-A (V): Free Stock Analysis Report
VANTIV INC-A (VNTV): Free Stock Analysis Report
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