Pornography has always been a part of our lives — be it under the form of dirty books that we used to read underneath the covers as curious kids, or the in-your-face movies that have been made pretty much since the concept of motion pictures was invented.
It is undeniable that its role in society is one of great importance, no matter how much stigma is placed upon it. And as much as we hate admitting it, we’ve all watched porn in one form or another. A multi-billion dollar industry isn’t built by nobody interacting with it, right?
But how does this multi-billion dollar industry handle its payments?
It takes a lot of money to create a quality porn movie — the equipment, props and location alone bring the creators to an alarming sum, not to mention the crew and most importantly, the cast. It is a rather famous idea that easy money is made within the porn industry, but that idea cannot be further from the truth.
Up until recently, the adult industry has been using banks for all their payments, but fundamental issues began to arise along the way (and not just for them, but also for their consumers).
Anonymity — One thing that is crucial when purchasing a porn video is that you don’t want your life partner, kids or relatives knowing about your purchases. Heck, most of us don’t even want our friends knowing about it. But banks aren’t really the best way to insure anonymity, since all transactions must contain your personal information when you own a credit card. And this is a slippery slope that leads to an ever greater issue within the industry: chargebacks.
Chargebacks — Due to the fact that that anonymity can’t be ensured, a lot of people resort to chargebacks in order to avoid being “caught” indulging in pornographic material. Let’s say you and your life partner share a joint account, and you decide to purchase “Surprise orgy 4” (Though after the first three orgies, everyone knows it’s not a surprise by now). Your life partner finds out about it and now you’re forced to dispute the charge in order to make good with your lover. Same goes for teenagers who buy porn with their parent’s credit cards, public figures who want to avoid a media scandal and the list could go on and on.
Unfortunately, chargebacks differ from traditional refunds in one simple way: rather than contact the business for a refund, the consumer goes over the merchant’s head and asks the bank to forcibly remove funds from the business’s bank account. So one can clearly observe just how much this affects the content creator.
Banks are beginning to shut down on the adult industry — this is starting to become a well-known fact: more and more banks are refusing to work with anyone or anything related to the adult industry, so it’s becoming increasingly difficult to run a business when you have to keep searching for the right means of payment, running into glass walls over and over again while trying to defend a profession that has, in one way or another, been here long before banks ever existed.
Here is where Crypto comes in to save the day
Cryptocurrency was invented as a peer-to-peer system for online payments that does not require a trusted central authority. Since its inception in 2008 (starting with the all-famous Bitcoin), crypto has grown into a technology, an investment vehicle and a community of users.
If you’ve been paying attention, something in that first sentence has struck a chord with you too: Crypto does not require a trusted central authority. What does that imply?
Well, let’s start with the first issue of payments in porn: Anonymity. Not having a third party transfering the money from your account into the content creator’s account, there is no need for you to provide your personal information and your pseudo-anonymity is instantly assured.
But what about Chargebacks? Oh well, this is when the good part comes in:
A chargeback can occur if a purchase is made through a credit card BUT cryptocurrency goes through a push transaction. The sale is final once cardholders give the coins to merchants and the system validates the transaction. That means merchants can accept payments without worrying about the threat of fraud or chargebacks.
By now it’s gotten pretty clear that crypto solves most, if not all payment issues encountered in the adult industry; and due to its anonymity, it creates a safe environment as opposed to what banks have to offer. Many adult companies have already figured that out and now successfully accept and encourage payments in cryptocurrency; some of them have completely switched to exclusively using crypto and have severed all ties with banks and other third-party payment options.
All I can say is, crypto and porn: name a better couple. I dare you.