Correct, great observation. PayPal Masspay charges the payment sender a fee, but it's free for the recipient. So these payouts are free for our merchants.
For digital goods, we'd handle the fulfillment for you. Goal is to make it dead simple and to provide everything you'd need, so you don't have to use any other services or do any coding.
Still, a server to server notification would be a good thing to have, no concrete plans or timing yet though.
But.. if you give money to sellers with PayPal, you're paying PayPal fee?