Paypal or credit card companies only have to issue a 1099-K on transactions over $20,000 or 200 transactions. The amounts over $600 but less than the threshold basically fall into a void. It's still reportable but know 1099 is issued.
Just a side note, it's not advisable to pay someone as a friend of family because you lose the protections paypal offers when buying goods or services if you don't do it as a business payment.
