PayPal is, in my opinion, one of the greatest services to hit the Internet in a long time.  PayPal is also a perfect example of how traditional brick-and-morter businesses must adapt to the Internet or become irrelevant.

With an e-mail address and a credit card or bank account, I can instantly send money to anyone else with an e-mail address - provided they are a PayPal user.  More importantly, anyone with an e-mail address and a credit card or bank account can instantly send me money without having to be a PayPal customer.

And you can get pretty creative with PayPal, too.

A few weeks ago I was playing poker with some good friends of mine.  Unfortunately, Lady Luck was not smiling upon me this evening and the cash I had brought to the game was now sitting in my friends' hands.  Of course, they'd be happy to loan me the money back, knowing I'm good for it - but I hate being in debt to friends.  That's when Andrew had the great idea of using PayPal.  I walked over to his kiosk, logged into PayPal, sent Andrew the money directly from my checking account, and walked over to Andrew to collect the cash.

PayPal - the Internet ATM.

Just to prove how cool it is, click here to send me $1.00 via PayPal.