Former AOL Pioneers Back With Online Payment Service

ST. PETERSBURG, Fla. – A new online payment service that sends funds using instant messaging software is being launched, with backing from some well-known names from America Online. Revolution Money Inc. reported it has developed a free, online person-to-person transfer system and a merchant co-branded card that includes both credit and prepaid debit features. Four banks, including Citigroup Inc., are involved with Revolution Money in various ways, according to American Banker. The company said its proprietary payment system uses a secure Internet connection, which is less costly to operate than a dedicated network. Among those involved in the launch of either the company or its venture capital fund backer, Revolution, LLC, are Steve Case and Ted Leonsis, two of the founders of AOL. The system currently is in testing and will open to the public in November. Users will be able to send money to each other through the widely used AOL Instant Messenger application.