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Several investors, including an undisclosed Goldman Sachs affiliate, AOL co-founder Steve Case and Citigroup Inc., have invested $42 million in Revolution Money Inc., which offers merchants a relatively low-cost customer-payment option. Revolution LLC owns Revolution Money, which supports the RevolutionCard, a credit card that charges merchants 0.5% of the sale–about one-third the cost to accept a network-branded credit card. Revolution also owns Revolution MoneyExchange, a free online person-to-person payment product used by 400,000 consumers. Revolution Money says it will use the funding to continue to develop the technology that supports its products. This is the second major round of funding for the company in the past two years. In September 2007, investors that included Citigroup, Morgan Stanley and Deutsche Bank invested $50 million in the company. In March, Revolution Money signed a 10-year deal with JPMorgan Chase & Co.'s merchant-processing unit, Chase Paymentech Solutions LLC, to accept RevolutionCard (CardLine, 3/30). The deal gives Revolution Card an opportunity for online merchants to accept the card. Revolution Money did not disclose its number of cardholders or transaction volumes but said 650,000 merchants accept RevolutionCard.
