AOL cofounder Steve Case has launched in beta-testing an online payment service that appears to compete with eBay's PayPal payment service. Revolution MoneyExchange's money-transfer service is, according to a company press release, "the first online payments platform for social and instant messaging networks, allowing consumers to safely transfer funds via the Internet to anyone, even merchants, for free."

Case's company, Revolution LLC, launched a new subsidiary, Revolution Money (formerly GratisCard Inc.), that promises to transform the payment industry. The company says it will offer a more secure credit card with significantly lower fees for merchants. Revolution Money cofounders include Ted Leonsis, former United States Treasury Secretary Larry Summers, former Charles Schwab CEO David Pottruck, and former MasterCard International President and CEO Russell Hogg and is backed by Citi, Morgan Stanley and Deutsche Bank.

Consumers will be able to use Revolution MoneyExchange across a variety of Internet platforms and portals, including social networks and Instant Messaging portals Revolution MoneyExchange launched in invitation-only beta form this week and will be gradually expanded before being made available to all consumers later this year.

http://www.revolutionmoney.com

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