News
News
10/18/2007
09:16 AM
50%
50%

Revolution Money To Launch Payment, Credit-Card Service

Ted Leonis, chairman of Revolution Money, told the Web 2.0 Summit that the new service would combine online payments with a less expensive credit card interchange platform.

Revolution Money, an online payment service that will go up against EBay's popular PayPal, is scheduled to launch in November, executives said at the Web 2.0 Summit in San Francisco.

Ted Leonsis, chairman of Revolution Money, told attendees gathered Wednesday at the conference's opening general session that the new service would combine online payments with a less expensive credit card interchange platform. Revolution Money is a subsidiary of Revolution LLC, an investment company formed by Steve Case, AOL co-founder and former chairman and CEO.

The new venture, which is currently in pilot stage, will let users transfer money to individuals and online merchants at no charge through its Revolution MoneyExchange. In addition, the company will offer RevolutionCard, a credit card with an interchange fee of 0.5%, which is considerably less than the 1.9% charged to merchants by other cards. RevolutionCard would not carry the cardholder's name, and would use a personal identification number, or PIN, much like an ATM card.

Revolution Money's initial distribution platform will be AOL's instant messaging service AIM. A link to the new service will be available through the AIM client. Besides Case, Revolution's backers include Citigroup and Morgan Stanley.

During his keynote, Leonsis described the new company as "PayPal meets MasterCard without the high fees." Because of its lower charges, Revolution Money will be a better payment option for small Web transactions, such as for buying 99-cent tracks on online music services, Leonsis said.

The company also hopes to have links on social networks and other online communities, Leonsis said. "We want to become for social networks what PayPal is for EBay."

Comment  | 
Print  | 
More Insights
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest, Dec. 9, 2014
Apps will make or break the tablet as a work device, but don't shortchange critical factors related to hardware, security, peripherals, and integration.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of December 7, 2014. Be here for the show and for the incredible Friday Afternoon Conversation that runs beside the program!
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.