What is a good way to transfer binary data to a HTTP REST API service?

We are extending our HTTP REST API to allow clients to upload picture (for the purpose of this question, assuming binary data). So far we have only allowed simply strings in our API parameters. What is a good way to allow them to upload binary data? Would it be to request for the base64 encoded form? Would the URL become too long for the web server to handle?

Any suggestions/best practices?

Just send the binary data as-is in a POST body, but with the appropriate Content-Type header (e.g. image/jpeg) - I think this is the most "RESTful" way.

(In general, as a rule of thumb when designing REST services, the more you work with the HTTP protocol as-is instead of trying to overlay something unnecessary and complex on top of it like base64, the better. HTTP is the ultimate RESTful protocol, and Content-Types allow for different "Representations" in "REpresentational State Transfer")

Another possibility to keep in mind is accepting image URLs instead of actual physical files. This makes it harder for standalone apps that e.g. read the image off the user's drive, but make it easier for mashup-type apps where the image may be returned as a URL from another service.

You can allow both options of course.