Twitpay: Too Accurately Named?

I am a perennial pessimist when it comes to new information services, so don't be too surprised if I'm wrong as hell, but the new Twitter-based micropayment application, Twitpay, seems a touch off. Now, I thought the same thing about Twitter itself ("Doesn't Facebook already have a Wall?" I thought, way back when), but still.

Twitpay, which is not a service that pays you money based on how much of a twit you are, is a service that lets you swap micropayments with your friends on the fly.

After you sign up, you'll put some cash in your Twitpay account through a service such as PayPal, and when you owe a friend money you can Tweet him or her your $10 or what-have-you. Twitpay takes a $0.05 cut, and your friend will only get Amazon gift rewards rather than cash, but it's still a functional micropayment system that, given a little preparation, can function between people rather than between a single person and one corporate entity. Twitpay's own FAQ says it best:

"...because Silicon Alley Insider said it was a billion dollar business (and) a billion dollar business sounded good to us."

Twitpay brings micropayments to Twitter [CNet]