Payment Products/Services that are making "The Buzz" - Revolution Money

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There seems to be a few companies that I’m continuously hearing more and more about in the interwebs. One such company is one called Revolution Money. Revolution Money has two main products Revolution Money and Revolution Exchange:

The RevolutionCard eliminates costly interchange fees for merchants while simultaneously providing consumers with enhanced PIN-based security, identity protection, and periodic merchant discounts and incentives. MoneyExchange offers an easy and secure way to send and receive money online between accountholders for free.[1]

Revolution Money comes at an interesting time with many merchant concerns of interchange fees:

The card’s chief advantage to merchants is its acceptance cost—0.5% of each purchase amount—which compares favorably to bank card discount fees at a time when merchants are disgruntled about the cost of accepting cards. [2]

The main challenge however with any new payment card/technology is merchant acceptance and cardholder issuance. This is true for a myriad of reasons, new terminals for merchants, integration of a new payment types of message formats to terminals, Point of Sale Systems, Payment Switches, and consumers to acquire another payment card and incentives to use that over the other bits of plastic that compete for their wallets, billfolds purses and handbags. But it appears that Revolution Money is planning for a million merchants by year end.

(June 20, 2008) Nine months after its official launch, Revolution Money Inc.’s PIN-secured credit card is being accepted at 150,000 merchants, a number a top executive at the St. Petersburg, Fla.-based alternative-payments provider says will reach 1 million by year’s end.[2]

I think that the bottom line is that this “Revolution” is set to challenge the ways of the current payment processors and payment networks, and add a new layer of competition, or at least the pressure of competition on interchange fees, especially for merchants that are currently resorting to cash discounts if a payment card is not used.

[1] https://www.revolutionmoney.com/about_revolution_money.aspx

[2] http://www.digitaltransactions.net/newsstory.cfm?newsid=1820

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