Today’s Internet Money Revolution

by Mark on September 24th, 2007

Today’s Internet Money RevolutionViva La Revolution!

A new Web 2.0 payment platform is raising the bar for all others that came before it.

With any successful online idea, its only a matter of time before the competition springs up around you. PayPal has enjoyed a good run this past decade or so but now its glaringly obvious they are coming into some stiff competition.

New, cheaper, improved services may soon be punching holes in PayPal’s bottom line. One such new online financial service is “revolutionmoney” formerly known as GratisCard Inc. Revolution money encompases the Revolution Money Exchange and the Revolution Card.

The text from their web site explains it all, “At Revolution Money, we think there’s a better way. So we decided to shake things up. No tricks. No gimmicks. No hidden fees. Just clear and simple products that make your life easier.”

In the not to distant future, this revolution should take online money transactions to a cheaper and more convenient place. The Revolution Money Exchange is a way to send and receive funds online. Its similar to Paypal but all account to account holder transactions are FREE. No gimmicks, no fees no kidding! The only charges which can be leveled on your new account are the paper or withdrawal item fees. (click this graphic to see)
Today’s Internet Money Revolution-Securely send and receive money between account holders for free.
-Request money from other account holders for free.
-Account registration is free.
-Transfer money to and from your bank account for free.

In addition to the lack of fees, they are offering a sister product, the Revolution Card [credit card] which can be linked to your new Money Exchange account. The Revolution Card is a PIN-based credit card. Not that the world needs another credit card, but the PIN protection on all transactions helps you if the card is lost, stolen or borrowed by your kids. Account holders also enjoy no annual fees and incentives at select merchants.

Additionally, there is NO name or account number embossed anywhere on the Revolution Card. The company suggested that since there is no name information or data stored on the card, then ID theft, fraud and card holder risks will be reduced.

Another cool online money transfer feature offered by the MoneyExchange is their ‘Instant Money’ AIM plug-in. This allows your IM to become an instant money transfer system and as the company puts it, “…your Buddy List can become a Money List.”

Merchant Advantages

This product also includes big savings for both online and offline merchants. How do they do it? Well, the ‘revolution’ brings with it one big difference, no interchange fees. That is pretty amazing. For merchants, transaction fees will start at 0.5% .

How will the lower fees make a difference?

When a consumer uses a credit card at any store today the merchant is required by traditional credit card companies to pay them an average of 1.9 percent of the total sale. For example, when a consumer buys a $500 television using their credit card the store has to pay the credit card company an average of $9.50. With billions of credit card transactions annually these fees - called ‘interchange fees’ - totaled an estimated $56 billion paid in the United States to credit card companies in 2006 alone. Revolution Money’s sophisticated new payment system, based on secure Internet technology, slashes these fees to 0.5 percent, creating significant savings for merchants and enabling them, in turn, to offer their customers new and immediate rewards, such as cost savings and loyalty programs. *prnewswire.com

Future plans include:

1. The ability to send money from your cell phone

2. Great tools for both online and offline with Revolution Money’s merchant toolbox

3. MoneyExchange’s tools for micro-merchants

4. Plans to offer an API

5. Social network integration

6. Gift Cards

The company Chairman is none other than Internet pioneer and AOL co-founder Ted Leonsis. Executives at the company include former United States Treasury Secretary Larry Summers, former Charles Schwab CEO David Pottruck, and former MasterCard International President and CEO Russell Hogg. Last but certainly not least, AOL founder Steve Case is chairman and CEO of Revolution LLC. They also have backing from Citi, Morgan Stanley and Deutsche Bank.