Revolution Money Receives Another $42 Million
By Thomas Heath
Revolution Money, a Florida-based financial services company, has received another $42 million from investors, including money from an affiliate of Goldman Sachs as well as from former AOL moguls Steve Case and Ted Leonsis.
"In the toughest funding environment for young startups, this is probably the largest vote of confidence in a financial services company in the last year," said Leonsis, who along with Case owns nearly half the company.
Revolution Money is a payments company that makes money from fees it charges merchants that accept its novel form of credit card. It also collects transaction fees at ATMs and as a prepaid debit card.
Revolution Money is part of Case's family of companies organized under Revolution LLC.
"We are a next-generation credit card, prepaid and an ATM card all in one," Leonsis said. "We have merged all three capabilities into one card, but our card is unique in that it doesn't have your name, number or signature."
Instead, said Leonsis, the cardholder is identified simply by a number rather than any personal identification, which helps prevent identity theft.
Although the company is not profitable, Leonsis said Revolution Money has sound business fundamentals and expects to turn a profit in the $70 billion financial transactions industry in 18 months.
The RevolutionCard is accepted at more than 650,000 merchant locations and at 85 percent of all ATMs in the U.S.
"We are signing up merchants and we should close on one million merchants soon," Leonsis said. "We have proven that we can build a network like Discover and Mastercard."
Revolution Money also includes Revolution Money/Exchange, which is a free online service that allows a consumer to transfer money to friends, family or merchants.
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