Warning: This will follow tipjoy account and DM you for no reason (other than to give you a password that I don't ever see using). Nether of which are explained on ether side of this implementation.

Now somebody has to tip me 15 cents to get my SMS message cost back because TipJoy DMed me.

You didn't enter a password to Tipjoy in the signup process, so we sent you one. Sorry it was unexpected.

Note that you took the step to integrate your phone with twitter, and accepted that a DM = an SMS. You can turn that off.

I actually think this is an excellent move on their (tipjoy's) part. Although I am not sure why people will use this other than it being gimmicky.

Correct me if I am wrong but doesn't tipjoy get 3% and paypal (possibly) another few %? That makes the $1 twit-tip very much less.

I assume they are just doing it for the growing twitter crowd. hell, twitter does not even make much sense to me, so maybe this will work for them! ^^

A lot of our growth recently has been on twitter, and we expect even more soon.

We take a 3% cut on cash out. If A gives $1 to B and B gives $1 to C, there is no fee. If C cashes out, we remove our fee and any overhead of moving money in and out of the system. The worst case overhead ends up being a fraction of the overhead of just using paypal.

We have already seen lots of P2P usage of this (paying for coffee or gifting a beer for a friend), and heavy use in microgiving donations to non-profits. As applications build on top of twitter, we expect people to pay for them using us.

We've already made an API for these transactions: http://tipjoy.com/api