Whatever you do, don't call it micropayments.

http://www.openp2p.com/pub/a/p2p/2000/12/19/micropayments.ht...

great link thanks, vocab changed!

This is a good question and I don't think we should kill the discussion by downplaying his choice of words.

I've looked into micropayment models before - Amazon had by far the cheapest fees compared to paypal and google if you were dealing with anything for less than $5. This was around a year ago, though, so I don't know if there is anything better that has come up since.

Does Google facilitate user to user transactions? Maybe you could hack something together with the API, but out of the box I think it is only client to merchant.

paypal is always an option, but after transferring money twice it is basically pointless