U.S. startup BeautifulLab has built the first mobile payment app for Pebble smartwatches, using mPOS firm LevelUp's payment platform, according to an announcement.

Launched with crowdfunding in 2012, Pebble builds smartwatches and runs an app store for wearable apps. Pebble watches connect to iOS and Android devices via Bluetooth.

Existing Pebble apps include fitness, utilities and games. The addition of LevelUp makes Pebble the first smartwatch to enable payment transactions at local businesses, BeautifulLab said.

The BeatifulLab payment app runs on LevelUp's Developer Platform which can be integrated into apps and web services for mobile payments. BeautifulLab says its app is available from the Pebble Appstore.

LevelUp is an open mobile payment network that enables users to pay by scanning their smartphone or smartwatch at checkout. Users can also pay on the Web by logging into their LevelUp account. Merchants pay a 2-percent fee for accepting LevelUp payments.

"It definitely turns heads when I check out with a quick flick of the wrist," Seth Priebatsch, LevelUp's CEO, said in a statement. "With LevelUp's Developer Platform, developers like BeautifulLab can integrate LevelUp directly into their own mobile and web apps."

"By enabling people to pay with their watch, we've reduced unnecessary steps in the transaction process and created perhaps the easiest way for people to pay for things," Tung Pham, BeatifulLab's co-founder, said in a statement. "I look forward to one day telling my kids about how people used to pay for things with plastic cards."

To celebrate their partnership, LevelUp is giving away a Pebble smartwatch and $250 of LevelUp credit to the customer making the 7 millionth LevelUp payment, which is expected to happen sometime in March 2014.