Leaving some extra change in a tip jar at your local coffee shop is nice way of showing your appreciation for the extra service you received. If you take this same approach to the online world, things get a bit more dicey. There are plenty of online payment options such as PayPal but it’s rather cumbersome to use these services for very small transaction amounts. Worse yet, the fees imposed on the recipient will often eat up a good amount of your donation.
Enter TipJoy, a micropayment service who’s mission is to help facilitate small donations or tips, to worthy people and causes. TipJoy essentially works on a pledge system, meaning when you pledge to give $1 or any other amount to someone, they receive a notice that you’ve promised to pay this amount at some point. TipJoy then tracks each of these pledges and when you elect to deposit at least $5.00 into your account, TipJoy will then pay the recipients. The goal is to aggregate your pledges so that any transaction fees are spread across several recipients rather than lumping it all on one person.
The beauty of TipJoy is in the ability to promote causes or services without requiring payment up front or having any minimum transaction amount. Many of the traditional challenges faced in fundraising simply disappear. Additionally, the service ties closely with social networking sites like Facebook and Twitter.
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