This has been the method I employ to germinate seeds and have had great success, Limits the work of planting a bunch of seeds in soil.. until you know which ones are viable.. I use a paper towel myself. I don't have problems with mold when I soak the seeds in a water and bleach mixture. which kills anything on the seed coat. It's has worked lots of times for me!
Much easier to keep up with on seeds that take a long time to germinate.. I get tired of watering little pots with soil... but keeping them in a ziplock keeps them most until they germinate,, then BAM action is on, pop em' in some soil and they take off