AOL backing PayPal, Google rival

Transfer funds free of charge with Revolution Money

AOL's co-founder Steve Case is backing a new online payment service poised to take on rival systems such as eBay's PayPal and Google's Checkout.

Revolution Money lets users transfer funds for free through its Revolution MoneyExchange, and offers a credit card with considerably lower fees for sellers. The payment service is still in its pilot stage, according to Reuters.

AOL will let users of its AIM instant messaging service make payments and fund transfers free of charge, a Revolution Money spokesperson said.

RevolutionCard

The firm also said it will offer RevolutionCard, a credit card with an interchange fee of 0.5 per cent, compared with an average of 1.9 per cent for other cards. Interchange fees are those a seller pays to a credit card company when someone makes a purchase using a credit or debit card. Revolution said the savings may be passed onto consumers.

You'll also be able to get an anonymous credit card with no name or account number on it. This could potentially cut the risk of identity theft, fraud and problems stemming from lost or stolen cards, Revolution said.

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