headless, i think you ahve a good plan, there is market for it. just be sure to cast the net over the right one. maybe what you're looking isn't to 'compete' with paypal per se.
Best of luck headless. More competition is a good thing. PayPal has bought Verisign and dragged the service level down to "paypal level" which most will say is not a good thing.
I think go for it. About time these big boys have some competition. Maybe you might get Google to buy you out in a year or two for billions of dollars. Come to think of it, do you want a partner?
don't sell out to google. omg no! Why make something bigger,when it already dominates the market? create the processor..and dont sell out..then your value is increased more..
Thanks for all of the comments, it has made my decision alot easier, the site should be up and running at the end of the month, i will post on this thread when the site is up and running. P.s I will never sell out to anyone