The service will work as it normally does, and users won’t be charged. The money raised will go to the American Red Cross’s disaster-relief effort.
To protect against fraud, Loopt uses venues’ wifi networks to confirm location, rather than simply relying on GPS.
A nice move on the company’s behalf to help relief efforts. But will it win over any users from Foursquare, Gowalla, or other similar ‘check in’ services? Or will it get people to spend incremental money at Chipotle, Whole Foods, or Panera? Probably not.