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November 18, 2009updated 04 Apr 2017 4:17pm

AmEx grabs Revolution Money

Setting the scene for intensified competition in the hotly contested online payments market, American Express (AmEx) is to acquire US-based Revolution Money for $300 million. AmExs outlay brings with it Revolution MoneyExchange, a free online person-to-person (P2P) and micro-merchant payments service with some 400,000 users, and RevolutionCard which offers a PIN credit card accepted at some 650,000 merchant locations and 85 percent of ATMs in the US

By EPI editorial

Setting the scene for intensified competition in the hotly contested online payments market, American Express (AmEx) is to acquire US-based Revolution Money for $300 million.

AmEx’s outlay brings with it Revolution MoneyExchange, a free online person-to-person (P2P) and micro-merchant payments service with some 400,000 users, and RevolutionCard which offers a PIN credit card accepted at some 650,000 merchant locations and 85 percent of ATMs in the US. Also offered is a prepaid card linked to Revolution P2P accounts.

“While Revolution Money is a young and relatively small company, we believe it has big potential,” said AmEx chairman and CEO Kenneth Chenault.

He continued: “Revolution Money has a lot of room to grow as it competes head-to-head with other online and person-to-person payment providers.

“We are committed to using our global brand recognition, marketing reach and network expertise to help reach a critical mass of customers.”

Chenault said that to expand Revolution’s reach AmEx’s initial areas of focus include:

• Developing re-loadable, prepaid products for new market segments;

• New products for card members who currently use other alternative payment systems;

• Payment alternatives designed for social media sites; and

• Mobile payments solutions in the US.

He added that other opportunities include expanding Revolution Money payment solutions internationally, extending product offerings to banks that issue cards on the AmEx network and creating new PIN-based debit products.

AmEx also announced that Revolution’s founder and CEO, Jason Hogg, will continue as president and chief executive, while Revolution’s chairman and a major shareholder, Ted Leonsis, will become a digital and online payments strategy adviser to AmEx.

Revolution Money will be the first component of AmEx’s Enterprise Growth unit formed to drive diversification into new payment areas and extract value from its global operations.

Backing AmEx’s drive is its formidable brand. In the 2009 Best Global Brands study by US publication Business Week and consultancy Interbrand it ranked first among financial institutions and 22nd overall.

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