INTERNET shopping may be a thorn in the side of the big high street stores, but for small traders it opens up a whole world of possibilities.

As a small trader setting up facilities to process credit cards can be expensive, but the American PayPal (www.paypal.com) system can be a great help.

Developed specifically for transacting small amounts over the Internet, PayPal lets anyone with some cash and an email address send and receive payments.

Here is how it works. You sign up to use PayPal by visiting its website. Then, when you make a sale you request payment by PayPal.

Your customer confirms the details and once done the money moves instantly from their PayPal account to yours.

PayPal then transfers the money electronically to your bank account or posts it to you as a cheque.

You can dispatch the items you've sold right away, with no need to wait for a cheque to clear.

And your buyer is safe in the knowledge that their credit card or bank account number is never seen by you.

Simple, quick and very effective, it has become the currency of choice on auction sites, where thousands of cottage industries are now run.