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I was sent a link to an unreleased Money Exchange application last night. Happened to be perfect timing given the announcement of Revolution Money. While the application doesn’t seem to do much currently, it is intended to transfer money for free over Facebook.
The concept of transferring money for free on the internet is definitely a revolutionary one. Once they launch the product I am confident that they will be successful as long as they can deliver. It will be interesting to see how soon they launch their product. Once launched, this will be the first (and only) free money transfer product on Facebook. My guess is that Facebook’s future e-commerce system will also tie into this as a back end given the extremely discounted fees for merchants. You can go check out the non-functioning Money Exchange application if you’d really like but it isn’t worth the time given that it doesn’t work. Enjoy!
just need facebook to sort out their leaky internal security…..
just need facebook to sort out their leaky internal security…..
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Revolution is actually much more than the monsey exxchange. They have their own credit card (no not a branded mastercard or visa) actual credit card that is accepted at many large retailers, Abercrombie and fitch, Walgreens, Nieman marcus just to name a few. The reason they will eventually be huge in my mind is their fee structure. When you go to a store and use your credit card and but something for $100, Visa or mastercard (whichever you use) takes about 1.5% + 15 cents, then on top of that the bank that issued their store a merchant account takes an additional .20 - .40% + 5-10 cents, so in the end off of that $100 purchase the store actually only gets about $98. The credit card processors take about $2.00. It may not sound like a whole lot but when an average SMALL business does around $30,000 in gross sales per month, thats $7,500 per year the processors are taking from that small business owner. just imagine how much they are taking from large stores.
Revolutions pricing is much much less. its about 70% less than MC/Visa so instead of taking $7,500, if you receive the same amount of payments from people with revolution cards, you would only pay around $2,500 per year.
BTW if you taken any business classeses you know $30,000 per month in sales equates to about $64,000 per year income for the owner, so an extra $5k a year is a lot to them.