[mysterydip]

It seems to me that there could exist a paypal-like system for micropayments. Maybe there already is and I don't know about it? Getting a critical mass would be necessary, a bit of a chicken-and-egg problem. If there was a service that went something like this:

- pay a flat fee of $x to deposit any amount up to $y

- pay nothing to transfer <$1 to another user (really just shifting numbers in a spreadsheet)

- pay $x to withdraw up to $y

You are incentivized to deposit more to make it worthwhile, fees don't eat into your per transaction revenue, and you're incentivized to wait for at least $y to cash out for maximum benefit. The company can invest that $ in the meantime and earn a low yield on a money market.

I'm sure if it were that easy it would already be done, but it makes sense to me.

[thedudemabry]

I agree that it would be neat, but I fear that the reason only big banks and credit card processors have attempted to dabble in this space is because you've just described a bank. Building one of those carries a whole host of regulations, even if the goal is a very simple, limited set of interactions.

[jpindar]

It works for Virtual Worlds though. At this very moment I am dancing at a party in InWorldz, and I just tipped the dj with Inworldz dollars that I previously purchased with USD. If she wants to withdraw the money as USD she can.