My grandma kept me from when I was a baby to maybe 3 or 4 years old. My grandma was no longer working and she really did love watching me while my parents were at work. My parents gave my grandma money too, not sure how much, but probably similar to what a sitter would get. Then when my cousin was born my aunt decided to do the same, but she didn't pay to have her son baby sat, she just assumed that her mother would just watch him for free. It's a lot of work to care for a child, imagine two? My aunt said she would not pay to have her mother watch her kid, and that it wasn't fair to ask her to do that, blah blah blah...
My mother then took me out and put me in a daycare. It was too much work for my grandmother to care for two children and my cousin was a difficult child. She never would have admitted that it was too hard, but my mother wasn't going to wait till there were problems either. My aunt never ended up paying for it either, and continued to send her son there for years.