diff --git a/package.json b/package.json
index 40c04bdfbb..8e0603e0db 100644
--- a/package.json
+++ b/package.json
@@ -12,10 +12,10 @@
     "babel": "^5.5.4",
     "babelify": "^7.2.0",
     "body-parser": "^1.14.1",
-    "compression": "^1.6.0",
     "bower": "~1.3.12",
     "browserify": "~12.0.1",
     "coffee-script": "1.6.x",
+    "compression": "^1.6.0",
     "connect-ratelimit": "0.0.7",
     "cookie-parser": "^1.4.0",
     "cookie-session": "^1.2.0",
@@ -64,7 +64,7 @@
     "nconf": "~0.8.2",
     "newrelic": "~1.23.0",
     "nib": "~1.0.1",
-    "nodemailer": "~0.5.2",
+    "nodemailer": "^1.9.0",
     "pageres": "^1.0.1",
     "passport": "~0.2.1",
     "passport-facebook": "2.0.0",
diff --git a/tasks/gulp-console.js b/tasks/gulp-console.js
index 46f4ea44ea..96af26a27a 100644
--- a/tasks/gulp-console.js
+++ b/tasks/gulp-console.js
@@ -2,7 +2,6 @@ import mongoose from 'mongoose';
 import autoinc  from 'mongoose-id-autoinc';
 import logger  from '../website/src/libs/api-v3/logger';
 import nconf    from 'nconf';
-import utils    from '../website/src/libs/utils';
 import repl     from 'repl';
 import gulp     from 'gulp';
 
@@ -19,8 +18,6 @@ let improveRepl = (context) => {
     process.stdout.write('\u001B[2J\u001B[0;0f');
   }});
 
-  utils.setupConfig();
-
   context.Challenge = require('../website/src/models/challenge').model;
   context.Group     = require('../website/src/models/group').model;
   context.User      = require('../website/src/models/user').model;
diff --git a/test/api/v3/unit/libs/email.test.js b/test/api/v3/unit/libs/email.test.js
new file mode 100644
index 0000000000..353ac0ad09
--- /dev/null
+++ b/test/api/v3/unit/libs/email.test.js
@@ -0,0 +1,217 @@
+import request from 'request';
+import nconf from 'nconf';
+import nodemailer from 'nodemailer';
+import Q from 'q';
+import logger from '../../../../../website/src/libs/api-v3/logger';
+
+function getUser () {
+  return {
+    _id: 'random _id',
+    auth: {
+      local: {
+        username: 'username',
+        email: 'email@email',
+      },
+      facebook: {
+        emails: [{
+          value: 'email@facebook'
+        }],
+        displayName: 'fb display name',
+      }
+    },
+    profile: {
+      name: 'profile name',
+    },
+    preferences: {
+      emailNotifications: {
+        unsubscribeFromAll: false
+      },
+    },
+  };
+};
+
+describe('emails', () => {
+  let pathToEmailLib = '../../../../../website/src/libs/api-v3/email';
+
+  beforeEach(() => {
+    delete require.cache[require.resolve(pathToEmailLib)];
+  });
+
+  describe('sendEmail', () => {
+    it('can send an email using the default transport', () => {
+      let sendMailSpy = sandbox.stub().returns(Q.defer().promise);
+
+      sandbox.stub(nodemailer, 'createTransport').returns({
+        sendMail: sendMailSpy,
+      });
+
+      let attachEmail = require(pathToEmailLib);
+      attachEmail.send();
+      expect(sendMailSpy).to.be.calledOnce;
+    });
+
+    it('logs errors', (done) => {
+      let deferred = Q.defer();
+      let sendMailSpy = sandbox.stub().returns(deferred.promise);
+
+      sandbox.stub(nodemailer, 'createTransport').returns({
+        sendMail: sendMailSpy,
+      });
+      sandbox.stub(logger, 'error');
+
+      let attachEmail = require(pathToEmailLib);
+      attachEmail.send();
+      expect(sendMailSpy).to.be.calledOnce;
+      deferred.reject();
+      deferred.promise.catch((err) => {
+        expect(logger.error).to.be.calledOnce;
+        done();
+      });
+    });
+  });
+
+  describe('getUserInfo', () => {
+    it('returns an empty object if no field request', () => {
+      let attachEmail = require(pathToEmailLib);
+      let getUserInfo = attachEmail.getUserInfo;
+      expect(getUserInfo({}, [])).to.be.empty;
+    });
+
+    it('returns correct user data', () => {
+      let attachEmail = require(pathToEmailLib);
+      let getUserInfo = attachEmail.getUserInfo;
+      let user = getUser();
+      let data = getUserInfo(user, ['name', 'email', '_id', 'canSend']);
+
+      expect(data).to.have.property('name', user.profile.name);
+      expect(data).to.have.property('email', user.auth.local.email);
+      expect(data).to.have.property('_id', user._id);
+      expect(data).to.have.property('canSend', true);
+    });
+
+    it('returns correct user data [facebook users]', () => {
+      let attachEmail = require(pathToEmailLib);
+      let getUserInfo = attachEmail.getUserInfo;
+      let user = getUser();
+      delete user.profile['name'];
+      delete user.auth['local'];
+
+      let data = getUserInfo(user, ['name', 'email', '_id', 'canSend']);
+      
+      expect(data).to.have.property('name', user.auth.facebook.displayName);
+      expect(data).to.have.property('email', user.auth.facebook.emails[0].value);
+      expect(data).to.have.property('_id', user._id);
+      expect(data).to.have.property('canSend', true);
+    });
+
+    it('has fallbacks for missing data', () => {
+      let attachEmail = require(pathToEmailLib);
+      let getUserInfo = attachEmail.getUserInfo;
+      let user = getUser();
+      delete user.profile['name'];
+      delete user.auth.local['email']
+      delete user.auth['facebook'];
+
+      let data = getUserInfo(user, ['name', 'email', '_id', 'canSend']);
+      
+      expect(data).to.have.property('name', user.auth.local.username);
+      expect(data).not.to.have.property('email');
+      expect(data).to.have.property('_id', user._id);
+      expect(data).to.have.property('canSend', true);
+    });
+  });
+
+  describe('sendTxnEmail', () => {
+    beforeEach(() => {
+      sandbox.stub(request, 'post');
+    });
+
+    afterEach(() => {
+      sandbox.restore();
+    });
+
+    it('can send a txn email to one recipient', () => {
+      sandbox.stub(nconf, 'get').withArgs('IS_PROD').returns(true);
+      let attachEmail = require(pathToEmailLib);
+      let sendTxnEmail = attachEmail.sendTxn;
+      let emailType = 'an email type';
+      let mailingInfo = {
+        name: 'my name',
+        email: 'my@email',
+      };
+
+      sendTxnEmail(mailingInfo, emailType);
+      expect(request.post).to.be.calledWith(sinon.match({
+        json: {
+          data: {
+            emailType: sinon.match.same(emailType),
+            to: sinon.match((value) => {
+              return Array.isArray(value) && value[0].name === mailingInfo.name;
+            }, 'matches mailing info array'),
+          }
+        }
+      }));
+    });
+
+    it('does not send email if address is missing', () => {
+      sandbox.stub(nconf, 'get').withArgs('IS_PROD').returns(true);
+      let attachEmail = require(pathToEmailLib);
+      let sendTxnEmail = attachEmail.sendTxn;
+      let emailType = 'an email type';
+      let mailingInfo = {
+        name: 'my name',
+        //email: 'my@email',
+      };
+
+      sendTxnEmail(mailingInfo, emailType);
+      expect(request.post).not.to.be.called;
+    });
+
+    it('uses getUserInfo in case of user data', () => {
+      sandbox.stub(nconf, 'get').withArgs('IS_PROD').returns(true);
+      let attachEmail = require(pathToEmailLib);
+      let sendTxnEmail = attachEmail.sendTxn;
+      let emailType = 'an email type';
+      let mailingInfo = getUser();
+
+      sendTxnEmail(mailingInfo, emailType);
+      expect(request.post).to.be.calledWith(sinon.match({
+        json: {
+          data: {
+            emailType: sinon.match.same(emailType),
+            to: sinon.match(val => val[0]._id === mailingInfo._id),
+          }
+        }
+      }));
+    });
+
+    it('sends email with some default variables', () => {
+      sandbox.stub(nconf, 'get').withArgs('IS_PROD').returns(true);
+      let attachEmail = require(pathToEmailLib);
+      let sendTxnEmail = attachEmail.sendTxn;
+      let emailType = 'an email type';
+      let mailingInfo = {
+        name: 'my name',
+        email: 'my@email',
+      };
+      let variables = [1,2,3];
+
+      sendTxnEmail(mailingInfo, emailType, variables);
+      expect(request.post).to.be.calledWith(sinon.match({
+        json: {
+          data: {
+            variables: sinon.match((value) => {
+              return value[0].name === 'BASE_URL';
+            }, 'matches variables'),
+            personalVariables: sinon.match((value) => {
+              return (value[0].rcpt === mailingInfo.email 
+                && value[0].vars[0].name === 'RECIPIENT_NAME' 
+                && value[0].vars[1].name === 'RECIPIENT_UNSUB_URL'
+              );
+            }, 'matches personal variables'),
+          }
+        }
+      }));
+    });
+  });
+});
diff --git a/test/api/v3/unit/libs/encryption.test.js b/test/api/v3/unit/libs/encryption.test.js
new file mode 100644
index 0000000000..dcab9bffd3
--- /dev/null
+++ b/test/api/v3/unit/libs/encryption.test.js
@@ -0,0 +1,15 @@
+import { 
+  encrypt,
+  decrypt,
+} from '../../../../../website/src/libs/api-v3/encryption';
+
+describe('encryption', () => {
+  it('can encrypt and decrypt', () => {
+    let data = 'some secret text';
+    let encrypted = encrypt(data);
+    let decrypted = decrypt(encrypted);
+
+    expect(encrypted).not.to.equal(data);
+    expect(data).to.equal(decrypted);
+  });
+});
diff --git a/test/server_side/controllers/groups.test.js b/test/server_side/controllers/groups.test.js
index 9e970c4afc..9574ed7640 100644
--- a/test/server_side/controllers/groups.test.js
+++ b/test/server_side/controllers/groups.test.js
@@ -8,7 +8,7 @@ var Group = require('../../../website/src/models/group').model;
 var groupsController = require('../../../website/src/controllers/api-v2/groups');
 
 describe('Groups Controller', function() {
-  var utils = require('../../../website/src/libs/utils');
+  var utils = require('../../../website/src/libs/api-v2/utils');
 
   describe('#invite', function() {
     var res, req, user, group;
diff --git a/website/src/controllers/api-v2/auth.js b/website/src/controllers/api-v2/auth.js
index 11cab90624..dd379cc095 100644
--- a/website/src/controllers/api-v2/auth.js
+++ b/website/src/controllers/api-v2/auth.js
@@ -3,7 +3,7 @@ var validator = require('validator');
 var passport = require('passport');
 var shared = require('../../../../common');
 var async = require('async');
-var utils = require('../../libs/utils');
+var utils = require('../../libs/api-v2/utils');
 var nconf = require('nconf');
 var request = require('request');
 var FirebaseTokenGenerator = require('firebase-token-generator');
diff --git a/website/src/controllers/api-v2/challenges.js b/website/src/controllers/api-v2/challenges.js
index 21104f2885..89d68495d6 100644
--- a/website/src/controllers/api-v2/challenges.js
+++ b/website/src/controllers/api-v2/challenges.js
@@ -9,7 +9,7 @@ var Group = require('./../../models/group').model;
 var Challenge = require('./../../models/challenge').model;
 var logging = require('./../../libs/api-v2/logging');
 var csv = require('express-csv');
-var utils = require('../../libs/utils');
+var utils = require('../../libs/api-v2/utils');
 var api = module.exports;
 var pushNotify = require('./../pushNotifications');
 
diff --git a/website/src/controllers/api-v2/groups.js b/website/src/controllers/api-v2/groups.js
index 62ac3804b5..0355148856 100644
--- a/website/src/controllers/api-v2/groups.js
+++ b/website/src/controllers/api-v2/groups.js
@@ -9,7 +9,7 @@ var _ = require('lodash');
 var nconf = require('nconf');
 var async = require('async');
 var Q = require('q');
-var utils = require('./../../libs/utils');
+var utils = require('./../../libs/api-v2/utils');
 var shared = require('../../../../common');
 var User = require('./../../models/user').model;
 var Group = require('./../../models/group').model;
diff --git a/website/src/controllers/api-v2/members.js b/website/src/controllers/api-v2/members.js
index c528b92cd7..1c3bb448ac 100644
--- a/website/src/controllers/api-v2/members.js
+++ b/website/src/controllers/api-v2/members.js
@@ -5,7 +5,7 @@ var api = module.exports;
 var async = require('async');
 var _ = require('lodash');
 var shared = require('../../../../common');
-var utils = require('../../libs/utils');
+var utils = require('../../libs/api-v2/utils');
 var nconf = require('nconf');
 var pushNotify = require('./../pushNotifications');
 
diff --git a/website/src/controllers/api-v2/unsubscription.js b/website/src/controllers/api-v2/unsubscription.js
index 772d0580e9..65f37f6298 100644
--- a/website/src/controllers/api-v2/unsubscription.js
+++ b/website/src/controllers/api-v2/unsubscription.js
@@ -1,6 +1,6 @@
 var User = require('../../models/user').model;
 var EmailUnsubscription = require('../../models/emailUnsubscription').model;
-var utils = require('../../libs/utils');
+var utils = require('../../libs/api-v2/utils');
 var i18n = require('../../../../common').i18n;
 
 var api = module.exports = {};
diff --git a/website/src/controllers/api-v2/user.js b/website/src/controllers/api-v2/user.js
index 5c6d256044..519ae0c557 100644
--- a/website/src/controllers/api-v2/user.js
+++ b/website/src/controllers/api-v2/user.js
@@ -5,7 +5,7 @@ var nconf = require('nconf');
 var async = require('async');
 var shared = require('../../../../common');
 var User = require('./../../models/user').model;
-var utils = require('./../../libs/utils');
+var utils = require('./../../libs/api-v2/utils');
 var analytics = utils.analytics;
 var Group = require('./../../models/group').model;
 var Challenge = require('./../../models/challenge').model;
diff --git a/website/src/controllers/payments/index.js b/website/src/controllers/payments/index.js
index 866c33381b..074fab2369 100644
--- a/website/src/controllers/payments/index.js
+++ b/website/src/controllers/payments/index.js
@@ -1,7 +1,7 @@
 var _ = require('lodash');
 var shared = require('../../../../common');
 var nconf = require('nconf');
-var utils = require('./../../libs/utils');
+var utils = require('./../../libs/api-v2/utils');
 var moment = require('moment');
 var isProduction = nconf.get("NODE_ENV") === "production";
 var stripe = require('./stripe');
diff --git a/website/src/index.js b/website/src/index.js
index 134060bf45..1de0170cd1 100644
--- a/website/src/index.js
+++ b/website/src/index.js
@@ -9,13 +9,13 @@ var logger = require('./libs/api-v3/logger');
 // Initialize configuration
 var setupNconf = require('./libs/api-v3/setupNconf');
 setupNconf();
-var utils = require('./libs/utils');
-utils.setupConfig();
 
 var IS_PROD = nconf.get('IS_PROD');
 var IS_DEV = nconf.get('IS_DEV');
 var cores = Number(nconf.get('WEB_CONCURRENCY')) || 0;
 
+if (IS_DEV) Error.stackTraceLimit = Infinity;
+
 // Setup the cluster module
 if (cores !== 0 && cluster.isMaster && (IS_DEV || IS_PROD)) {
   // Fork workers. If config.json has CORES=x, use that - otherwise, use all cpus-1 (production)
diff --git a/website/src/libs/utils.js b/website/src/libs/api-v2/utils.js
similarity index 100%
rename from website/src/libs/utils.js
rename to website/src/libs/api-v2/utils.js
diff --git a/website/src/libs/api-v3/email.js b/website/src/libs/api-v3/email.js
new file mode 100644
index 0000000000..65cbcce02a
--- /dev/null
+++ b/website/src/libs/api-v3/email.js
@@ -0,0 +1,158 @@
+import { createTransport } from 'nodemailer';
+import nconf from 'nconf';
+import logger from './logger';
+import { encrypt } from './encryption';
+import request from 'request';
+
+const IS_PROD = nconf.get('IS_PROD');
+const EMAIL_SERVER = {
+  url: nconf.get('EMAIL_SERVER:url'),
+  auth: {
+    user: nconf.get('EMAIL_SERVER:authUser'),
+    password: nconf.get('EMAIL_SERVER:authPassword'),
+  },
+};
+const BASE_URL = nconf.get('BASE_URL');
+
+let smtpTransporter = createTransport({
+  service: nconf.get('SMTP_SERVICE'),
+  auth: {
+    user: nconf.get('SMTP_USER'),
+    pass: nconf.get('SMTP_PASS'),
+  },
+});
+
+// Send email directly from the server using the smtpTransporter,
+// used only to send password reset emails because users unsubscribed on Mandrill wouldn't get them
+export function send (mailData) {
+  return smtpTransporter
+    .sendMail(mailData)
+    .catch((error) => logger.error(error));
+}
+
+export function getUserInfo (user, fields = []) {
+  let info = {};
+
+  if (fields.indexOf('name') !== -1) {
+    info.name = user.profile && user.profile.name;
+
+    if (!info.name) {
+      if (user.auth.local && user.auth.local.username) {
+        info.name = user.auth.local.username;
+      } else if (user.auth.facebook) {
+        info.name = user.auth.facebook.displayName || user.auth.facebook.username;
+      }
+    }
+  }
+
+  if (fields.indexOf('email') !== -1) {
+    if (user.auth.local && user.auth.local.email) {
+      info.email = user.auth.local.email;
+    } else if (user.auth.facebook && user.auth.facebook.emails && user.auth.facebook.emails[0] && user.auth.facebook.emails[0].value) {
+      info.email = user.auth.facebook.emails[0].value;
+    }
+  }
+
+  if (fields.indexOf('_id') !== -1) {
+    info._id = user._id;
+  }
+
+  if (fields.indexOf('canSend') !== -1) {
+    if (user.preferences && user.preferences.emailNotifications) {
+      info.canSend = user.preferences.emailNotifications.unsubscribeFromAll !== true;
+    }
+  }
+
+  return info;
+}
+
+// Send a transactional email using Mandrill through the external email server
+export function sendTxn (mailingInfoArray, emailType, variables, personalVariables) {
+  mailingInfoArray = Array.isArray(mailingInfoArray) ? mailingInfoArray : [mailingInfoArray];
+
+  variables = [
+    {name: 'BASE_URL', content: BASE_URL},
+  ].concat(variables || []);
+
+  // It's important to pass at least a user with its `preferences` as we need to check if he unsubscribed
+  mailingInfoArray = mailingInfoArray.map((mailingInfo) => {
+    return mailingInfo._id ? getUserInfo(mailingInfo, ['_id', 'email', 'name', 'canSend']) : mailingInfo;
+  }).filter((mailingInfo) => {
+    // Always send reset-password emails
+    // Don't check canSend for non registered users as already checked before
+    return mailingInfo.email && (!mailingInfo._id || mailingInfo.canSend || emailType === 'reset-password');
+  });
+
+  // Personal variables are personal to each email recipient, if they are missing
+  // we manually create a structure for them with RECIPIENT_NAME and RECIPIENT_UNSUB_URL
+  // otherwise we just add RECIPIENT_NAME and RECIPIENT_UNSUB_URL to the existing personal variables
+  if (!personalVariables || personalVariables.length === 0) {
+    personalVariables = mailingInfoArray.map((mailingInfo) => {
+      return {
+        rcpt: mailingInfo.email,
+        vars: [
+          {
+            name: 'RECIPIENT_NAME',
+            content: mailingInfo.name,
+          },
+          {
+            name: 'RECIPIENT_UNSUB_URL',
+            content: `/unsubscribe?code=${encrypt(JSON.stringify({
+              _id: mailingInfo._id,
+              email: mailingInfo.email,
+            }))}`,
+          },
+        ],
+      };
+    });
+  } else {
+    let temporaryPersonalVariables = {};
+
+    mailingInfoArray.forEach((mailingInfo) => {
+      temporaryPersonalVariables[mailingInfo.email] = {
+        name: mailingInfo.name,
+        _id: mailingInfo._id,
+      };
+    });
+
+    personalVariables.forEach((singlePersonalVariables) => {
+      singlePersonalVariables.vars.push(
+        {
+          name: 'RECIPIENT_NAME',
+          content: temporaryPersonalVariables[singlePersonalVariables.rcpt].name,
+        },
+        {
+          name: 'RECIPIENT_UNSUB_URL',
+          content: `/unsubscribe?code=${encrypt(JSON.stringify({
+            _id: temporaryPersonalVariables[singlePersonalVariables.rcpt]._id,
+            email: singlePersonalVariables.rcpt,
+          }))}`,
+        }
+      );
+    });
+  }
+
+  if (IS_PROD && mailingInfoArray.length > 0) {
+    request.post({
+      url: `${EMAIL_SERVER.url}/job`,
+      auth: {
+        user: EMAIL_SERVER.auth.user,
+        pass: EMAIL_SERVER.auth.password,
+      },
+      json: {
+        type: 'email',
+        data: {
+          emailType,
+          to: mailingInfoArray,
+          variables,
+          personalVariables,
+        },
+        options: {
+          priority: 'high',
+          attempts: 5,
+          backoff: {delay: 10 * 60 * 1000, type: 'fixed'},
+        },
+      },
+    }, (err) => logger.error(err));
+  }
+}
diff --git a/website/src/libs/api-v3/encryption.js b/website/src/libs/api-v3/encryption.js
new file mode 100644
index 0000000000..0f5f9d83dd
--- /dev/null
+++ b/website/src/libs/api-v3/encryption.js
@@ -0,0 +1,25 @@
+import {
+  createCipher,
+  createDecipher,
+} from 'crypto';
+import nconf from 'nconf';
+
+// TODO check this is secure
+const algorithm = 'aes-256-ctr';
+const SESSION_SECRET = nconf.get('SESSION_SECRET');
+
+export function encrypt (text) {
+  let cipher = createCipher(algorithm,  SESSION_SECRET);
+  let crypted = cipher.update(text, 'utf8', 'hex');
+
+  crypted += cipher.final('hex');
+  return crypted;
+}
+
+export function decrypt (text) {
+  let decipher = createDecipher(algorithm, SESSION_SECRET);
+  let dec = decipher.update(text, 'hex', 'utf8');
+
+  dec += decipher.final('utf8');
+  return dec;
+}
\ No newline at end of file
diff --git a/website/src/libs/api-v3/logger.js b/website/src/libs/api-v3/logger.js
index 4583610d25..3ab20ad685 100644
--- a/website/src/libs/api-v3/logger.js
+++ b/website/src/libs/api-v3/logger.js
@@ -12,7 +12,9 @@ if (IS_PROD) {
   // log errors to console too
 } else {
   logger
-    .add(winston.transports.Console);
+    .add(winston.transports.Console, {
+      colorize: true,
+    });
 }
 
 export default logger;
diff --git a/website/src/middlewares/locals.js b/website/src/middlewares/locals.js
index 7bec7cc399..223186a81a 100644
--- a/website/src/middlewares/locals.js
+++ b/website/src/middlewares/locals.js
@@ -1,6 +1,6 @@
 var nconf = require('nconf');
 var _ = require('lodash');
-var utils = require('../libs/utils');
+var utils = require('../libs/api-v2/utils');
 var shared = require('../../../common');
 var i18n = require('../libs/api-v2/i18n');
 var buildManifest = require('../libs/api-v2/buildManifest');
diff --git a/website/src/server.js b/website/src/server.js
index 6573bb3c6e..1142f27539 100644
--- a/website/src/server.js
+++ b/website/src/server.js
@@ -2,7 +2,6 @@
 
 import nconf from 'nconf';
 import logger from './libs/api-v3/logger';
-import utils from './libs/utils';
 import express from 'express';
 import http from 'http';
 // import path from 'path';
@@ -15,7 +14,6 @@ import mongoose from 'mongoose';
 import Q from 'q';
 import domainMiddleware from './middlewares/api-v3/domain';
 import attachMiddlewares from './middlewares/api-v3/index';
-utils.setupConfig();
 
 // Setup translations
 // let i18n = require('./libs/api-v2/i18n');