American Express and online discounting services provider LevelUp have launched a multi-city pilot in the US with the Levi’s brand, under a newly-developed “couponless” loyalty offer model.

Under the deal, American Express’ Smart Offer APIs are set to enable cardholders to redeem LevelUp deals by enrolling and using their cards, thus removing the need for punch-cards and coupons at the point of sale.

How it works
When a cardholder uses his or her enrolled card at a merchant, the corresponding LevelUp savings are automatically delivered via a statement credit to the card account. Eligible cardholders instantly receive notification via their mobile devices indicating that a statement credit is on its way and that they have “leveled up,” unlocking the next offer from that merchant. This launch also marks the first time Android's new push notification technology is used in market.

Developed by Google Ventures-backed SCVNGR, LevelUp is a new type of local deal that looks to offer value for the consumer and for the merchant. After purchasing an initial offer, consumers unlock progressive deal levels, creating incentive to return to the business and loyalty to the merchant along the way.