American Express To Battle Paypal (EBAY)
November 18, 2009 9:43 AM
American Express Company (NYSE: AXP) has acquired Revolution Money, a Revolution LLC company for $300 million. Revolution Money raised over $90 million from the likes of Citi (NYSE: C), Morgan Stanley (NYSE: MS) and Deutsche Bank (NYSE: DB).
Revolution Money, launched by AOL Co-founder Steve Case’s Revolution LLC in 2007, provides secure payments through an internet based platform.
“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,” said Mr. Chenault.
It would appear that American Express wants to compete in the popular person to person payment network that eBay's (Nasdaq: EBAY) Paypal currently dominates.
Revolution Money estimated its RevolutionCard credit card is accepted at about 650,000 locations in the United States including those of bookseller Barnes & Noble, upscale grocer Whole Foods Market and department store chain Nordstrom.
Earlier this year, Ted Leonsis, chairman of Revolution Money, said Revolution Money would not consider an initial public offering or put itself up for sale before 2011.
“Right now, we are focused on the build-out of the platform, but at some point to really scale the business, we would have to go public,” Mr. Leonsis told Reuters.
