Amex to Buy Revolution Money for $300M
From Amex:
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 Kenneth I. Chenault, chairman and chief executive officer of American Express.
Plop this P2P payments platform into Amex’s customer base and watch it take over a chuck of share from PayPal. Smart move by Amex.
The only unfortunate aspect of this deal is that Revolution is one of only a handful of truly innovative startups in the financial services space — and Revolution was fortunate to have Steve Case’s money behind it. With Revolution subsumed by Amex, a bit of that creative spark has to be lost.
WSJ’s coverage here.
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