It's called LevelUp and it's a new way to pay for items at participating merchants and collect rewards.
Michael Strange of Bassett's compares the app to an old-fashioned punch-card for frequent shoppers, "We have a 'frequent licker' program, it's an old-fashioned card, where if they purchase 10 cones, they get the eleventh at no charge. This is a high-tech version of that."
Here's how it works. Users download the app and link it to a credit or debit card. The app creates a QR code on your phone that you scan at checkout. The merchants' incentives -- in Bassett's case $10 free on your first use -- are deducted from your bill, the remaining amount is charged to your card.
I tried it out at the Market Bakery, which was also offering $10 in free products for first-time users. I ordered 6 bagels, scanned the code from my phone -- and got my bagels for free. I even got a receipt on my phone.
The app uses your phone's GPS to help you find participating merchants near your location. And you can protect your card with a PIN number, just in case the phone gets lost or stolen.
LevelUp is available for both iPhone and Android. When you sign up, you'll get a promotional code that you can share with friends so that both you and they get an extra $5 in incentives. Click here to link to the sites where you can download the app.