Karen Webster of Market Platform Dynamics asked me to share some quick reactions on the announced acquisition of Revolution Money by AmEx this morning. As a result, my thoughts are cross-posted on PYMNTS.com. Karen asked me to address the following questions/issues:

What was your initial reaction to the news?

My initial reaction was that AmEx move to purchase Revolution is a direct reaction to two big moves PayPal has made in recent months. First, last November, PayPal announced the acquisition of BillMeLater. If the incumbents needed a signal that alternative payments were ready for prime-time, PayPal/BillMeLater provided it. AmEx’ acquisition of Revolution Money only solidifies the trend and highlights how controlling the payment instrument is as important as controlling the back-end. Related to this, it is clear that AmEx wants to buoy it’s at-risk issuer-side revenue streams with…