Steve Case's Revolution Money payment service received $42 million to add to the $50 million raised in 2007. When it launched, the company said it wanted to become for social networks what PayPal was for eBay, and it later launched a plug-in for AIM that lets AOL users instant message money to their "Buddy list." But it soon became clear Revolution Money competed with PayPal as well as with credit card services.
Revolution MoneyExchange is a free service for instantly sending money between accountholders. The company uses the free person-to-person service as a customer acquisition tool for its RevolutionCard credit card service, which offers lower merchant fees and gives rewards to consumers.
In September 2008, there were 4,100 listings on Etsy and 2,800 sellers on eBay who accepted Revolution MoneyExchange.
The company recently entered into a deal with Chase Paymentech, a leading merchant acquirer and payment processor. Revolution Money said it was accepted at nearly 300,000 merchants and was on track for 1 million by year-end.
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"Revolution MoneyExchange Competes with eBay's PayPal"
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