A lot of the people who would be providing content for your blog-hosting service (that is, blogging), aren't necessarily in a legal position to receive money. 8-year-olds, for instance, or people living in countries where it is terribly expensive to set up a bank account that can accept internatonal payments, or even people staying in the US on Student visas who are obligated to not earn any income while they're here.
And yet, if you say "well, we'll only give you your cut if-and-when you jump through all the legal hoops yourself so we can just send it without worrying or doing too much work", these people will get mad that you're withholding "their" money, move their blogs elsewhere, tell all their readers that you're stonewalling lazy moneygrubbers ("you're just like Paypal!" they'll say), etc.
>And yet, if you say "well, we'll only give you your cut if-and-when you jump through all the legal hoops yourself so we can just send it without worrying or doing too much work", these people will get mad that you're withholding "their" money, move their blogs elsewhere, tell all their readers that you're stonewalling lazy moneygrubbers ("you're just like Paypal!" they'll say), etc.
I don't understand how "give us a routing number and we'll deposit the money into your checking account" is particularly arduous. If you live in a country that makes payments difficult, what do you expect a blogging platform to do about it? You'll encounter the same issue from any ad network who might pay you to put ads on your own unaffiliated blog. If you want that fixed you have to lobby your government to fix it, or move to another country.
In addition to that, Paypal has to deal with an army of international scammers and Paypal are cheap/lazy bastards who would rather screw over their users than devise elegant solutions to those problems. But almost all of those problems are a result of Paypal withdrawing money from one account and depositing it into another. A blogging platform doesn't do that: They get money from advertisers, who are happy when their ads are shown to users who buy stuff regardless of the are-you-a-dog status of individual bloggers, and deposit the money into the accounts that said bloggers have asked it to be deposited into. There is nowhere near the same opportunity to steal anyone else's money in the traditional method of signing up for a scam account and taking payments for goods or services you never intend to deliver, so the level of dickishness required to run the operation is substantially reduced.
And yet, if you say "well, we'll only give you your cut if-and-when you jump through all the legal hoops yourself so we can just send it without worrying or doing too much work", these people will get mad that you're withholding "their" money, move their blogs elsewhere, tell all their readers that you're stonewalling lazy moneygrubbers ("you're just like Paypal!" they'll say), etc.