Yesterday, we told you how Paypal were keeping half the money raised by an indie game until the game had been finished. Even though...the devs needed that money to finish the game. Today, somebody at Paypal has woken up on planet Earth and done the smart thing.

The small team behind indie fighting game Yatagarasu Attack on Cataclysm have a problem. Despite raising nearly $120,000 on crowdsourcing site Indiegogo - twice what they asked for - they can't get their hands on over half the cash.

It was one of the year's feel-good stories when Lab Zero Games raised over $800,000 so they could make more content for indie fighting game Skullgirls.

For the third time in about a year, PayPal has frozen the account of an independent developer for six months, presumably because preorder activity triggered red flags. PayPal rarely says why in this case, even to the account holder, leaving its actions to appear arbitrary and bureaucratic, if not portrayed as…

In May, Microsoft revealed that PayPal would be added as a payment option for Xbox Live transactions such as subscriptions and Microsoft Points purchases. This week, an internal email to PayPal employees asked them to test the service, and pointed to Nov. 15—the 10-year anniversary of the original Xbox launch—as the…

The makers of World of Warcraft have struck back at the game's gold-farming black market, convincing PayPal to suspend the accounts of those using the service for gold-selling transactions. Warning letters went out this month.

Microsoft sure are big on introducing third-party applications to the world of the Xbox 360. First it was Netflix, Twitter and Facebook, and now it's...PayPal.