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by braindead_in 5826 days ago
A lot of companies follow model 1. Eg. Google Adsense, oDesk, Elance, etc. and anybody who has a affiliate program.

Also in the long run you'll have to support more than few modes of withdrawal: checks, payoneer, moneybookers etc. PayPal is still very popular and your users will eventually demand it. If you have international users then it adds another layer of complexity.