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Friday, November 20, 2009

American Express Buys Online Payments Firm

The American Express Company said on Wednesday that it would buy Revolution Money, a provider of Internet-based payment services started by Stephen M. Case, AOL’s co-founder, for $300 million.

Revolution Money offers secure online payments in which transactions are authorized by using a PIN. Its cards do not include names or account numbers. The company described itself as a lower-cost alternative to big credit card companies like American Express.

“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,” said Kenneth I. Chenault, chief of American Express.

“While Revolution Money is a young and relatively small company, we believe it has big potential,” Mr. Chenault said. “This is a smart, nimble business.”

more at http://www.nytimes.com/2009/11/19/business/19amex.html

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