Founder Steve Case of AOL is supporting a new online payment venture called Revolution Money.

The Revolution business model proposes to let users transfer funds at no cost and make credit card payments at significantly lower cost to merchants, reports Reuters.

Some call the fledgling online payment contender "potentially disruptive."

The Revolution MoneyExchange service also lets users transfer money to individuals or merchants at no cost.

AOL will serve as one initial partner. AIM instant messenger users will be able to make payments and fund transfers via Revolution at no cost to them.

AOL has also committed to promoting the RevolutionCard, a credit card sporting an interchange fee of .5 percent. Users are also able to obtain "anonymous" credit cards, which lack names or account numbers, a method that purportedly reduces ID theft.

The company reportedly has a Facebook app in the works, a strategy expected to draw early adopter attention. Lending Club, another financial service, used leverage from its own Facebook app to attract venture capital attention.

Case's investment firm Revolution LLC led the initial round of venture capital funding, which totaled US$ 50 million. Citi and Morgan Stanley also participated.