Waiting on SL server version 1.27 going live (currently scheduled to be completed by the 15th), I have a PayPal vendor for Second Life. Drop an item in, give it a price and your PayPal account e-mail address. Customers then click the vendor to get a URL out of it (cannot use llLoadURL() to bring up a dialog due to maximum URL length: please vote for http://jira.secondlife.com/browse/SVC-4109 to see this fixed), and click that URL in chat.
This brings the customer to a PayPal login page. They log in to confirm their identity, and it brings up a payment confirmation page. The click “Pay Now”, and the money is transferred to your account, and the vendor ships the item.
Problems so far:
1. It can’t perform refunds itself, but needs manual intervention instead.
2. llLoadURL() hangs the script for 10 seconds, and can’t accept URLs long enough.
3. PayPal payment fees are fairly extreme when dealing with $1-5 at a time (expect to typically pay $0.30 + 2.9% per transaction).
I’m looking for testers if anyone’s interested; contact me in-world for more details.