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Why would OnlyFans not simply move to another payment processor then? This all seems a bit strange.

by pell 5y ago

sascha_sl 5y ago
It's not so easy. The obvious candidates all ban adult content, and the ones used by the porn industry are either owned by the same or take cuts that make the AppStore look reasonable.
- pell 5y ago
  From what I understand OnlyFans has essentially no other product except for this type of content though. So I would have assumed negotiating with one of these processors for a somewhat more reasonable contract despite higher fees would still be more lucrative than giving up what seems to be their core business and revenue stream.
- skinnymuch 5y ago
  Taking a 30% cut doesn’t seem that bad compared to the alternative. Why lose 90% of your revenue and all your profit just to not give a 30 or 40% cut to shitty middle man? Unless Onlyfans actually has some decent traction outside sexual stuff. I find that hard to believe. If photos are still allowed, that’s something. But still. Maybe I’m completely misinformed though!
- gpvos 5y ago
  They could set up their own payment processor (unless it's really Visa or Mastercard pushing this).
judge2020 5y ago
If the party pushing is Visa or Mastercard (of which 'other' processors like Paypal, Venmo, Cashapp are beholden to as well) that would only really leave cryptocurrency, which is a large barrier to taking payments and would likely mean >90% revenue loss anyways. Reminder that payment processor pressure is what has caused a lot of (legal) art to be pushed off of Patreon[0]. 0: https://www.vice.com/en/article/vbqwwj/patreon-suspension-of-adult-content-creators#:~:text=%22We%20have%20been%20ramping%20up%20the%20proactive%20review%20of%20content%20on%20Patreon%20due%20to%20requirements%20from%20our%20payment%20partners%2C%E2%80%9D https://www.vice.com/en/article/vbqwwj/patreon-suspension-of... (discussion: https://news.ycombinator.com/item?id=17432801 https://news.ycombinator.com/item?id=17432801 )
- throwawayvisa2 5y ago
  To add: Bans some forms of anime art: https://www.dailydot.com/irl/patreon-anime-porn-ban/ https://www.dailydot.com/irl/patreon-anime-porn-ban/ Banning for activity/art outside of art hosted on Patreon: https://www.dailydot.com/irl/patreon-gay-hypnosis-artists/ https://www.dailydot.com/irl/patreon-gay-hypnosis-artists/ (articles may contain nsfw imagery)
- arebop 5y ago
  Strike and Coinbase prohibit any use in connection with adult services in their ToS. Building/maintaining fiat onramps at scale is hard.

Why would OnlyFans not simply move to another payment processor then? This all seems a bit strange.

by pell 5y ago

Why would OnlyFans not simply move to another payment processor then? This all seems a bit strange.

It's not so easy. The obvious candidates all ban adult content, and the ones used by the porn industry are either owned by the same or take cuts that make the AppStore look reasonable.

pell 5y ago
From what I understand OnlyFans has essentially no other product except for this type of content though. So I would have assumed negotiating with one of these processors for a somewhat more reasonable contract despite higher fees would still be more lucrative than giving up what seems to be their core business and revenue stream.
skinnymuch 5y ago
Taking a 30% cut doesn’t seem that bad compared to the alternative. Why lose 90% of your revenue and all your profit just to not give a 30 or 40% cut to shitty middle man? Unless Onlyfans actually has some decent traction outside sexual stuff. I find that hard to believe. If photos are still allowed, that’s something. But still. Maybe I’m completely misinformed though!
gpvos 5y ago
They could set up their own payment processor (unless it's really Visa or Mastercard pushing this).

judge2020 5y ago

If the party pushing is Visa or Mastercard (of which 'other' processors like Paypal, Venmo, Cashapp are beholden to as well) that would only really leave cryptocurrency, which is a large barrier to taking payments and would likely mean >90% revenue loss anyways. Reminder that payment processor pressure is what has caused a lot of (legal) art to be pushed off of Patreon[0]. 0: https://www.vice.com/en/article/vbqwwj/patreon-suspension-of-adult-content-creators#:~:text=%22We%20have%20been%20ramping%20up%20the%20proactive%20review%20of%20content%20on%20Patreon%20due%20to%20requirements%20from%20our%20payment%20partners%2C%E2%80%9D https://www.vice.com/en/article/vbqwwj/patreon-suspension-of... (discussion: https://news.ycombinator.com/item?id=17432801 https://news.ycombinator.com/item?id=17432801 )

throwawayvisa2 5y ago
To add: Bans some forms of anime art: https://www.dailydot.com/irl/patreon-anime-porn-ban/ https://www.dailydot.com/irl/patreon-anime-porn-ban/ Banning for activity/art outside of art hosted on Patreon: https://www.dailydot.com/irl/patreon-gay-hypnosis-artists/ https://www.dailydot.com/irl/patreon-gay-hypnosis-artists/ (articles may contain nsfw imagery)
arebop 5y ago
Strike and Coinbase prohibit any use in connection with adult services in their ToS. Building/maintaining fiat onramps at scale is hard.