Revolution Money, the payments company backed by Steve Cases Revolution LLC, has received $42 million in Series C funding from a Goldman Sachs affiliate (a new investor), as well as AOL co-founder Case, Revolution Money Chairman Ted Leonsis, former Charles Schwab CEO David Pottruck, former JP Morgan Vice Chairman David Golden, Citigroup Inc. and Morgan Stanley.
Revolution Money will use this funding to continue developing the core technology behind its present products. Todays funding follows a Series B investment round of $50 million led by Citigroup Inc., Morgan Stanley and Deutsche Bank in September 2007.
The Internet-based, proprietary RevolutionCard Network supports the following products:
-RevolutionCard a general-use credit card that charges no interchange fees and only a half-percent processing fee per transaction to accept up to an 80% savings over other credit card offerings. Merchants turn some of these savings into customer loyalty and cash-back programs. The PIN-based card also offers the best identity theft available, as the card itself bears no personal information about the cardholder.
-Revolution MoneyExchange With more than 400,000 current users, Revolution MoneyExchange is a free online P2P payments service that enables users to exchange money for free. Consumers can start transferring money to friends, family, or merchants online
In one of the toughest funding environments in history, this investment is a big endorsement of Revolution Moneys business model, says Jason Hogg, founder and CEO, Revolution Money. As merchants and consumers search for savings at every turn, Revolution Money is seen as a welcome alternative to the traditional high-cost credit card companies and PayPal.
L.D.