Erik Moeller wrote:
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dramatically increase participation. This isn't that hard to do as PayPal provides an interface for it: https://www.paypal.com/en/cgi-bin/webscr?cmd=p/xcl/rec/ipn-intro
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Do not forget that by using PayPal WikiMedia is wasting a lot of money.
Befor asking even more money a cheaper donation channel should be explored.
Please see http://meta.wikipedia.org/wiki/Talk:Wikimedia_Fundraising_page#MoneyBookers