(RTTNews) - Payments and travel company American Express Co. (AXP: News ) said Monday that the company would acquire alternative payments company Revolution Money for $300 million. The deal is expected to close in the first quarter of 2010.
American express intends to use Revolution Money's internet based platform to extend the company's focus beyond its traditional payments arena.
Revolution Money's payment processing platform integrated with a low-cost payment card network enables a wide variety of payment products to meet the needs of issuers, merchants and consumers. Revolution Money's platform provides a secure way to make internet payments. The revolution cards does not display account numbers and names and, transactions from revolution cards need to be authorized by using a PIN number, these enables the customers to keep their important information secure.
Further, Revolution Money's online person-to-person payment accounts are FDIC insured which makes the the company's payment accounts ideally suitable for social and instant messaging networks. Revolution Money also offers a prepaid card which links the accounts that can be used for offline payments or to withdraw cash from ATMs throughout the United States.
Commenting on the acqusition, Kenneth Chenault, chairman and chief executive officer of American Express said, "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."
"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," Chenault added.
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