Yesterday reported that AOL's AIM has released a plug-in that allows users to transfer money to friends over the popular instant-messaging service, using the peer-to-peer payment service, Revolution MoneyExchange. "Millions of people separated by time and distance increasingly rely on AIM to communicate with friends and family," said Jason Hogg, President and CEO of Revolution Money. "We're proud to team up with AOL to give AIM users the benefits of the MoneyExchange integrated online payment


"By working with Revolution Money to enable AIM users to pay or pay back their buddies on AIM with just a few mouse clicks, we're making it easier for them to do more each day right from the AIM service."

MoneyExchange ties directly into your bank account. Funds can also be accessed by the company’s RevolutionCard. Unlike traditional credit cards, there’s no name or signature on the card, and no physical information is stored on it; customers must enter a PIN code to use it. Revolution touts the card as having “industry-leading security features.” The Revolution Card is already accepted at major outlets such as Bloomingdales, Barnes & Noble, GNC, and Office Depot, and Walgreens.

The card’s main goal is the elimination of interchange fees, which cost consumers and merchants billions of dollars each year. The RevolutionCard claims to reduce credit card fees by 80%.

Some gas stations are teaming with Revolution Money to reduce gas prices, as credit-card charges are so severely cutting into their business that some now refuse plastic. That, and RevolutionCard’s recently ended free money/referral incentive program, should ensure the company good word of mouth.

Revolution Money received $50 million in Series B funding for their effort from Citi, Morgan Stanley, and Deutsche Bank and is partnered with First Bank & Trust, Brookings, SD.

By Mark Alvarez