iGaming B2B
Founded
2008-01-01 in Boston, Massachusetts, USA
Headquarters
Boston, Massachusetts, USA

LevelUP began as SCVNGR, a social-gaming startup founded in 2008 by Seth Priebatsch. After pivoting in 2011, it became a mobile payment and loyalty platform tailored for restaurants and cafes. Its white-label mobile wallet, loyalty engine, and order-ahead capabilities helped merchants enhance customer retention and streamline payments. By 2018, LevelUP processed over $1 billion in annual transactions and served chains like Panera and Sweetgreen. In September 2018, Grubhub acquired the company for $390 million, integrating its technology into Grubhub's marketplace. Post-acquisition, the LevelUP brand was phased out, and its founder became Grubhub's Senior Vice President of Innovation. The company never operated in the iGaming or gambling sector.

Detailed Review

Founding and Pivot

LevelUP was founded in 2008 as SCVNGR, a location-based social gaming platform. After struggling to scale the consumer gaming market, founder Seth Priebatsch recognised a stronger opportunity in applying gamification to restaurant loyalty and payments. In 2011, the company relaunched as LevelUP, offering a turnkey mobile payment and loyalty system for food-service businesses.

Business Model

LevelUP charged merchants transaction fees and subscription fees for its white-label mobile wallet and loyalty services. Consumers used the free app to pay at restaurants, earn rewards, and receive personalised offers. The platform also included an order-ahead feature that allowed pre-payment for pickup or dine-in.

Products and Platforms

LevelUP's core products included the LevelUP Wallet (mobile payment app), the Loyalty Engine (backend loyalty management), and Order Ahead (pre-ordering capability). These were integrated into a unified system that merchants could customise with their own branding.

Market Position and Acquisition

LevelUP was a leading player in the restaurant loyalty and mobile payments space, competing with companies like Punchh and Apple Pay for restaurant use. In September 2018, Grubhub acquired LevelUP for $390 million to bolster its own loyalty and ordering technology. After the acquisition, LevelUP's technology was folded into Grubhub's platform, and the brand was gradually retired.

Post-Acquisition Status

LevelUP no longer operates as an independent company. Its staff and technology are part of Grubhub, which itself is owned by Just Eat Takeaway.com. The founder, Seth Priebatsch, moved to Grubhub as Senior Vice President of Innovation. No independent leadership or product line remains under the LevelUP name.

Regulatory and Licensing

As a payment processor for restaurants, LevelUP was subject to financial regulations such as PCI DSS and state-level money transmitter laws. It did not obtain gambling-specific licenses because its business was entirely in food-service payments.

Key Products

  • LevelUP Wallet

    A white-label mobile payment app that lets consumers pay at restaurants using a barcode, with integrated loyalty points and direct offers.

  • Loyalty Engine

    Backend platform for merchants to create, manage, and analyse loyalty programmes, including points, tiers, and real-time rewards.

  • Order Ahead

    Pre-payment feature enabling customers to order and pay for meals via the phone for pickup or dine-in.

Key Persons

  • Seth Priebatsch

    Founder & CEO (2008–2018); after acquisition, SVP of Innovation at Grubhub

Recent News

Related Companies