When I first read this, I was all "Damn, this feels scammy" but having done some more research (and by research, I mean reading the results of several other peoples' research and Googling about), it seems like a legit thing. Steve Case of AOL is behind it in part, and that gives me some added confidence. AOL was great until Steve wasn't at the helm.
Anyhow. Free $25 for you for a payment service (which does look to be able to link to a credit card of sorts but isn't required), backed by a real bank (which means you do have to provide an SSN during signup), and if you go through my link, I get another $10.
I don't like PayPal. This system looks like it could be a good replacement for it (unless your primary PayPal use is eBay, which won't take this yet and probably won't ever since eBay owns PayPal). I wouldn't mind seeing PayPal get some competition.
I believe the free money bit expires tomorrow, so if you're gonna sign up, I'd do it today. :D