American Express to Acquire PayPal Competitor Revolution Money
By Ina Steiner
AuctionBytes.com
November 18, 2009
Reading AuctionBytes: American Express to Acquire PayPal Competitor Revolution Money
American Express Company is acquiring Revolution Money, which was launched by AOL co-founder Steve Case's Revolution LLC in 2007. Revolution Money is an online person-to-person payment whose accounts are FDIC insured and targeted at social and instant messaging networks. It also offers a prepaid card linked to those accounts that can be used for offline payments or to withdraw cash from ATMs throughout the United States.
Interestingly, online payment services are dominated by Internet firms, such as PayPal, Google Checkout and Amazon Payments as well as international firms such as PayMate, ProPay and Moneybookers, while financial services firms such as Western Union (MoneyZap) and Citi (C2it) were unable to sustain their online payment services.
Revolution MoneyExchange has a plug-in for AIM, AOL's Instant Messaging service. Users can send money through the instant messaging service to people on their "Buddy list" using a screen that Revolution Money manages.
Kenneth I. Chenault, Chairman and CEO of American Express, said in the press announcement, "New payments products and platforms are evolving rapidly and it's important for us to keep identifying cutting edge technologies that can extend our leadership beyond the traditional payments arena. While Revolution Money is a young and relatively small company, we believe it has big potential. This is a smart, nimble business. It's run by an accomplished management team who have quickly developed some cutting edge e-payment offerings. Joining with American Express will help unlock their potential, while allowing us to deliver competitive online payment products more rapidly and efficiently."
Jason Hogg will continue as President and CEO. Ted Leonsis, a Revolution Money angel investor, major shareholder and chairman, will become a special advisor to American Express working with Mr. Chenault on overall digital and online payments strategy.
"We have built a next-generation payments platform that will enable American Express to compete even more effectively, especially against online competitors," said Mr. Leonsis. "Revolution Money�s technology brings together the online and offline worlds in a way that can transform the way consumers securely transact. And with the low cost structure enabled by internet technology, American Express is now even better positioned to scale their online presence over time."
The transaction, which is subject to regulatory review, is expected to close in the first quarter of 2010. The purchase price is expected to be approximately $300 million. Upon closing, Revolution Money would operate as a subsidiary of American Express and be the first component of its recently formed Enterprise Growth organization. Enterprise Growth was formed to leverage American Express' existing assets and capabilities to generate incremental fee revenue and to drive the company's entry into new payment areas and related businesses. Initial areas of focus will include:
* Developing re-loadable, prepaid products for new segments of the market
* Introducing new products for cardmembers who currently use other alternative payment systems
* Creating payment alternatives designed for social media sites and allowing open APIs that can help developers distribute new product innovations
* Developing mobile payments solutions in the United States
Other opportunities will include expanding Revolution Money payment solutions internationally, extending product offerings to banks that issue cards on the American Express network and creating new forms of PIN-based debit products.
Showing posts with label PayPal. Show all posts
Showing posts with label PayPal. Show all posts
Thursday, November 19, 2009
Friday, July 24, 2009
PayPal Makes Important Changes To Policies - Again...
Did anyone else get this?
Policy Updates
--------------------------------------------------------------------------------
PayPal is a business that serves a new and exciting market. As that market changes, our business evolves. This page is dedicated to informing users in advance of important changes to the PayPal service, its User Agreement or other policies.
Amendment to the PayPal User Agreement
Effective Date: August 19, 2009
Beginning August 19, 2009 PayPal user agreement is being amended as follows:
We are revising Section 8 of the User Agreement for two reasons:
To show the fees in a clearer manner without a substantial change, and
To insert the following:
“In some instances, personal transaction pricing may not be available, the transaction will be considered a commercial transaction and the commercial transaction fees shall apply. This may occur on non-PayPal websites that offer you the ability to send a payment from your PayPal account.
Personal transactions are always available when you go to our website, log in to your Account, click the “Send Money” tab, and select “Personal” when you send the money.”
We are revising Sections 10.1 and 10.2 of the User Agreement. The revised section will read as follows:
“10.1 Your Liability. You are responsible for all Reversals, Chargebacks, Claims, fees, fines, penalties and other liability incurred by PayPal, a PayPal User, or a third party caused by or arising out of your breach of this Agreement, and/or your use of the Services.
Liability for PayPal Buyer Protection Claims, and Buyer Complaint Policy Claims. If PayPal makes a final decision that you lose a Claim filed directly with PayPal, you will be required to reimburse PayPal for your liability. Your liability will include the full purchase price of the item and original shipping cost (and in some cases, you may not receive the item back). PayPal Seller Protection may cover your liability, see section 11 below.
Liability for claims filed directly with eBay under eBay’s resolution process.If you are an eBay seller, eBay requires that you comply with their resolution process. As such, you have provided eBay with permission to make a final decision on a claim that a buyer files against you directly with eBay. If eBay makes a final decision that you lose a claim, you agree to allow PayPal to remove funds from your PayPal Account in order to reimburse eBay for your liability. Seller Protection does not cover claims filed with eBay.
Opt-Out. If you do not want to allow PayPal to reimburse eBay for your liability, you may opt-out by calling eBay at 1-866-643-3727. Your opt-out will be effective within 3 Business Days. If you opt-out then eBay will not use your PayPal Account to recover amounts that you owe due to an eBay claim that you lost. This opt-out will not affect other amounts that you pay to eBay using your PayPal Account (such as your eBay fees).
10.2 Reimbursement for Your Liability. In the event that you are liable for any amounts owed to PayPal, PayPal may immediately remove such amounts from your Balance. If you do not have a Balance that is sufficient to cover your liability, your Account will have a negative Balance and you will be required to immediately add funds to your Balance to eliminate the negative Balance. If you do not do so, PayPal may engage in collection efforts to recover such amounts from you.”
We are revising Section 10.5 of the User Agreement to allow PayPal to place reserves on Personal Accounts that are receiving Commercial Transactions.
The PayPal Credit definition in section 15 will be expanded to include Bill Me Later.
To see the entire policy change, check your PP account. Once signed in, look on the right side for policy changes: https://www.paypal.com/
Can someone translate it into english???
Policy Updates
--------------------------------------------------------------------------------
PayPal is a business that serves a new and exciting market. As that market changes, our business evolves. This page is dedicated to informing users in advance of important changes to the PayPal service, its User Agreement or other policies.
Amendment to the PayPal User Agreement
Effective Date: August 19, 2009
Beginning August 19, 2009 PayPal user agreement is being amended as follows:
We are revising Section 8 of the User Agreement for two reasons:
To show the fees in a clearer manner without a substantial change, and
To insert the following:
“In some instances, personal transaction pricing may not be available, the transaction will be considered a commercial transaction and the commercial transaction fees shall apply. This may occur on non-PayPal websites that offer you the ability to send a payment from your PayPal account.
Personal transactions are always available when you go to our website, log in to your Account, click the “Send Money” tab, and select “Personal” when you send the money.”
We are revising Sections 10.1 and 10.2 of the User Agreement. The revised section will read as follows:
“10.1 Your Liability. You are responsible for all Reversals, Chargebacks, Claims, fees, fines, penalties and other liability incurred by PayPal, a PayPal User, or a third party caused by or arising out of your breach of this Agreement, and/or your use of the Services.
Liability for PayPal Buyer Protection Claims, and Buyer Complaint Policy Claims. If PayPal makes a final decision that you lose a Claim filed directly with PayPal, you will be required to reimburse PayPal for your liability. Your liability will include the full purchase price of the item and original shipping cost (and in some cases, you may not receive the item back). PayPal Seller Protection may cover your liability, see section 11 below.
Liability for claims filed directly with eBay under eBay’s resolution process.If you are an eBay seller, eBay requires that you comply with their resolution process. As such, you have provided eBay with permission to make a final decision on a claim that a buyer files against you directly with eBay. If eBay makes a final decision that you lose a claim, you agree to allow PayPal to remove funds from your PayPal Account in order to reimburse eBay for your liability. Seller Protection does not cover claims filed with eBay.
Opt-Out. If you do not want to allow PayPal to reimburse eBay for your liability, you may opt-out by calling eBay at 1-866-643-3727. Your opt-out will be effective within 3 Business Days. If you opt-out then eBay will not use your PayPal Account to recover amounts that you owe due to an eBay claim that you lost. This opt-out will not affect other amounts that you pay to eBay using your PayPal Account (such as your eBay fees).
10.2 Reimbursement for Your Liability. In the event that you are liable for any amounts owed to PayPal, PayPal may immediately remove such amounts from your Balance. If you do not have a Balance that is sufficient to cover your liability, your Account will have a negative Balance and you will be required to immediately add funds to your Balance to eliminate the negative Balance. If you do not do so, PayPal may engage in collection efforts to recover such amounts from you.”
We are revising Section 10.5 of the User Agreement to allow PayPal to place reserves on Personal Accounts that are receiving Commercial Transactions.
The PayPal Credit definition in section 15 will be expanded to include Bill Me Later.
To see the entire policy change, check your PP account. Once signed in, look on the right side for policy changes: https://www.paypal.com/
Can someone translate it into english???
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