I despise PayPal because monopolies are bad for the consumer. PayPal has become the defacto method of sending money across the Internet and paying for eBay auctions. I just sold an extra CPU on eBay for $60 and PayPal took their $2 cut (don’t get me started on the $5.41 eBay got). Google Checkout was suppose to be a big PayPal competitor for retail sales, but peer to peer transactions are stuck using PayPal. There might be a viable contender in town now.
Revolution Money Exchange is part of Revolution, LLC, founded by AOL co-founder Steve Case. The board of directors is filled with former CEOs: David Pottruck from Charles Schwab; David Golden from JP Morgan; Franklin Raines from Fannie Mae; and Russell Hogg from MasterCard International. This definetely isn’t some homegrown Web 2.0 project coming out of some guy’s garage.
Here are some of the differences between Revolution Money Exchange and Paypal:
- No fees for receiving and sending funds
- Only checking accounts are used, cutting credit cards out of the picture is what reduces the costs so drastically
- No business services or eBay integration
- Simple interface, PayPal has become a nightmare to use
Sending money person to person is Money Exchange’s focus and it shows in the account creation process which is very straightforward. They’ve got a $25 sign up bonus going on until May 15th so I thought I would try it out. If I don’t end up using it then I got some free money. If you sign up for the $25 bonus through the link below I’ll get a $10 and then you can refer people.
Give it a try; it would make transactions like going in on a gift together or selling things on Craigslist a lot easier. There is some real potential here and I hope it starts growing in popularity.