Santa Cruz, Calif.,-based e-commerce startup PayStand is coming out of beta with a new payments service aimed at the heart of PayPal’s small-merchant business.(s ebay) The company announced today it has raised $1 million in seed funding from investors Cervin Ventures, Serra Ventures, Central Coast Angels, and TiE LaunchPad, and opened up its service to any entrepreneur looking to sell his or her goods from a PC or mobile browser.

Unlike other emerging payment services like Braintree (which was recently bought by eBay/PayPal) and Stripe, PayStand isn’t focusing on startups looking to rapidly scale both online and in mobile. Instead, PayStand is targeting a much smaller type of business: boutique retailers, bands looking to sell their CDs and T-shirts online and charities that want to accept donations digitally. That’s right in PayPal’s sweet spot, but PayStand has done a few things to try and differentiate itself from…