Shoemoney says that there’s got to be a better way than PayPal for micro transactions. He’s right, there should be something, and I’m not talking about Google Checkout either. Shoe poses…

About once a week it seems me and David have a talk about micro payments on the web and a way to do them properly. Both of us agree it is a service badly needed but we also agree we do not want to do it =P. Right now if you want to send someone a small amount of money there just is no way to do it that makes much sense.

I am a huge fan of virtual “credits” or “points”. Basically people can cash in $10 or whatever the equiv currency would be and receive 1000 credits.. for fun lets just call them shoemoney dollars. Now people on their blogs or whatever could easily send money or “tip” other people for posts/content/whatever they like.

He goes on to use my ScratchBack.com as an example of why PayPal transaction fees well, suck. They do.

Some of you out there are like well you can do that now with things like scratchback right? Sure you can but its REALLY inefficient. Let me show you why. Just for instance I am going to use Shawn Collins blog affililate tip. As you can see I can send him $1 paypal to get a link on his blog via Scratchback:

Looking at the Paypal calculator Paypal is going to take 33% of the payment. So after Paypal takes there 1/3 of $1 and scratchback takes their 30% (I think that is their percentage but I could not find it on the site) That leaves like 40% some percent actually goes to Shawn Collins. Hrmmm

Actually, ScratchBack only takes 10% after PayPal fees Shoe. But back to the point.

What Show wants someone to build is a GREAT idea. However, I don’t think possible.

BUT lets say Scratchback allowed me to buy ehhh… lets call it SCRATCHBUCKS where it was even a even swap $10 = 10 scratch bucks… And I could distribute those scratchbucks at my leisure to people who have scratchback accounts.

There are simply too many global laws and money exchange issues, and plenty more things, that would make this type of system a HUGE endeavor.

But I like the idea. :O

I don’t get why every online store doesn’t have a PayPal option? I mean, if you’re going to accept credit cards, and even checks, why not have a PayPal option?

Case in point, I was going to send a Don’t Piss Off The Blogger t-shirt to Shoemoney for his Friday t-shirt concept. So I went to dontpissofftheblogger.com, a store that I created in Spreadshirt, and thought I’ll buy one and send it over to him.

But… guess what, I can’t pay via PayPal on Spreadshirt. Why the heck not?

I’ve been trying to think of a reason to not have a PayPal, or heck, even Google checkout, option in ANYONE’S shopping cart. Yet, for the life of me, I cannot figure it out.

Here’s why I don’t get it. I use PayPal as kind of my “fun money” account. In other words, the money in there isn’t “real” to me. I use it to buy impulse purchases and fun things I want that I would normally never pull out a credit card for.

Awesome Million is built solely on PayPal as the only transaction method, specifically because I didn’t believe that most people would drop $5 on their credit card for something so trivial and fun and impulse-ish (I know that’s not a word).

Scratchback will also function solely on PayPal too. You’ll see why soon enough.

So Jeremy, no t-shirt for you. Time to find another store where I can create a new t-shirt. Anyone know of one that accepts PayPal?

Calacanis says that Google is putting the nail in the PayPal coffin. Perhaps, perhaps.

I won’t guess on that. But what I will do is make a plea to a business development person at PayPal, right here, right now.

I have an idea for you that can kick Google’s butt. I need to talk to the right person (decision-maker), and I need an NDA, and I need 10 minutes of your time.

Call me, email me… Info on right.

This isn’t a joke. What have you got to lose but 10 minutes?