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Decent Work and Economic Growth- Reduced Inequality
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The payment ecosystem and the regulation of adult webcamming and subscription-based fan platforms
Brief about:
Journal Article (2024)
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Investigates the regulatory role of payment intermediaries, specifically Visa and Mastercard and payment processors, in adult webcamming and subscription-based fan platforms, and how these rules impact the adult industry.
The platformization of the adult industry, where market activities shift to digital platforms, has empowered sex workers to directly upload and livestream content, but also increased the power of digital platforms to set conditions for sex work. This shift has raised regulatory concerns about content moderation and identification verification, with payment intermediaries playing a crucial role in regulating online content globally.
In the wake of public outrage over non-consensual content and child sexual abuse material (CSAM) on platforms like Pornhub, Mastercard introduced new rules on April 14, 2021, for platforms selling adult content. These rules and their enforcement highlight the significant role payment intermediaries play in regulating online sexual content by setting requirements for content moderation and verification.
The adult industry faces a unique regulatory environment where payment intermediaries, primarily Visa and Mastercard, dictate the terms of permissible sexual content. The adult industry is categorized as high risk for credit card payments, meaning that adult businesses must use specialized high risk payment processors, who operate with inflated processing fees and stringent compliance requirements. Therefore, a specialized payment ecosystem for sexual commerce on the Internet exists. This makes processors and credit card networks—the payment intermediaries—vital and powerful private players that the adult industry has to navigate.These intermediaries have developed rules that exceed legal requirements, driven by commercial interests, reputational concerns, and legal liabilities.
Key findings
- Payment intermediaries like Visa and Mastercard act as de facto regulators of the adult industry, setting rules that exceed legal requirements, for which payment processors become mediators and enforcers. The credit card networks’ rules and standards create a regulatory framework as private actors without a decision-making process that reflects the interests of different stakeholders.Evidence
Mastercard and Visa develop their rules without meaningful consultation with the industry. Many interviewees expressed strong criticism of the lack of accountability in the decision-making process, highlighting that Visa and Mastercard operate as private entities rather than governmental regulators. As Ava, an activist and performer, stated, “this is not even government regulation; this is a private company,” while Andras, a representative from a webcam platform, pointed out that their rules are driven by “commercial interests.” Adult platforms are dependent on payment intermediaries for vital financial infrastructure and thus have to comply with these punitive rules.
What it meansThe regulatory power of payment intermediaries creates a framework that is not accountable to the adult industry, impacting the livelihoods of sex workers and the content they can produce.
- The rules set by payment intermediaries lead to over-moderation and the prohibition of legal content.Evidence
Mastercard's 2021 requirements include strict age verification, content moderation, and documentation rules that go beyond what is stipulated by law. Payment processors interpret and enforce these rules on adult platforms. It can be challenging for processors to interpret which content is prohibited because credit card networks do not clearly define prohibited content, at times leading to overly strict rules. Adult platforms on their turn need to comply with payment processor rules. Although platforms are risk-averse when facing the potential loss of payment processing, they also have a financial interest in not excessively restricting the content from which they profit, leading to intentionally vague content rules on the platform that engender both over and under-moderation.
What it meansThe mix of punitive measures with vague rules across the chain of command leads to selective over-moderation, limiting the types of content sex workers can produce.
- Payment intermediaries' rules are opaque and lack accountability, leaving the adult industry with little influence over the regulatory process.Evidence
Industry representatives criticize Visa and Mastercard for not involving the adult industry in drafting rules, with Mastercard meeting industry representatives only once after publishing new requirements.
What it meansThe lack of accountability in the regulatory process creates uncertainty and limits the industry's ability to influence the rules that govern their operations in punitive and non-democratic ways.
- The regulatory framework set by payment intermediaries does not reflect the interests of sex workers, impacting their livelihoods and labor practices.Evidence
Research shows that 90% of sex workers experienced adverse effects from Mastercard's 2021 rules, with disproportionate impacts on queer, Black, kink, and fat sex workers.
What it meansThe regulatory process prioritizes corporate interests over the needs of sex workers, highlighting the need for worker-centered platforms and regulatory frameworks.
Proposed action
- Payment intermediaries need to be investigated and held accountable asregulators of online sexual commerce, and more generally as key actors in platform governance.
- Accountability in the regulatory process needs to shift, both toward the industry as a whole and more specifically toward workers, to ensure that regulatory principles, such as “consent,” and decisions are informed by workers’ lived experiences and interest. This would prevent such principles from being broad, underdeveloped standards that primarily serve to protect corporate reputations, and minimize legal risks, and from being inconsistently enforced to safeguard platform profits.
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The payment ecosystem and the regulation of adult webcamming and subscription-based fan platforms
Cite this brief: Franco, Rébecca. 'The payment ecosystem and the regulation of adult webcamming and subscription-based fan platforms'. Acume. https://www.acume.org/r/the-payment-ecosystem-and-the-regulation-of-adult-webcamming-and-subscription-based-fan-platforms/
Brief created by: Dr Rébecca Franco | Year brief made: 2025
Original research:
- Franco, R., ‘The payment ecosystem and the regulation of adult webcamming and subscription-based fan platforms’ 00(0) (pp. 1–20) https://doi.org/10.1177/1461444824567890. – https://journals.sagepub.com/doi/full/10.1177/1461444824567890
Research brief:
Investigates the regulatory role of payment intermediaries, specifically Visa and Mastercard and payment processors, in adult webcamming and subscription-based fan platforms, and how these rules impact the adult industry.
The platformization of the adult industry, where market activities shift to digital platforms, has empowered sex workers to directly upload and livestream content, but also increased the power of digital platforms to set conditions for sex work. This shift has raised regulatory concerns about content moderation and identification verification, with payment intermediaries playing a crucial role in regulating online content globally.
In the wake of public outrage over non-consensual content and child sexual abuse material (CSAM) on platforms like Pornhub, Mastercard introduced new rules on April 14, 2021, for platforms selling adult content. These rules and their enforcement highlight the significant role payment intermediaries play in regulating online sexual content by setting requirements for content moderation and verification.
The adult industry faces a unique regulatory environment where payment intermediaries, primarily Visa and Mastercard, dictate the terms of permissible sexual content. The adult industry is categorized as high risk for credit card payments, meaning that adult businesses must use specialized high risk payment processors, who operate with inflated processing fees and stringent compliance requirements. Therefore, a specialized payment ecosystem for sexual commerce on the Internet exists. This makes processors and credit card networks—the payment intermediaries—vital and powerful private players that the adult industry has to navigate.These intermediaries have developed rules that exceed legal requirements, driven by commercial interests, reputational concerns, and legal liabilities.
Findings:
Payment intermediaries like Visa and Mastercard act as de facto regulators of the adult industry, setting rules that exceed legal requirements, for which payment processors become mediators and enforcers. The credit card networks’ rules and standards create a regulatory framework as private actors without a decision-making process that reflects the interests of different stakeholders.
Mastercard and Visa develop their rules without meaningful consultation with the industry. Many interviewees expressed strong criticism of the lack of accountability in the decision-making process, highlighting that Visa and Mastercard operate as private entities rather than governmental regulators. As Ava, an activist and performer, stated, “this is not even government regulation; this is a private company,” while Andras, a representative from a webcam platform, pointed out that their rules are driven by “commercial interests.” Adult platforms are dependent on payment intermediaries for vital financial infrastructure and thus have to comply with these punitive rules.
The regulatory power of payment intermediaries creates a framework that is not accountable to the adult industry, impacting the livelihoods of sex workers and the content they can produce.
The rules set by payment intermediaries lead to over-moderation and the prohibition of legal content.
Mastercard’s 2021 requirements include strict age verification, content moderation, and documentation rules that go beyond what is stipulated by law. Payment processors interpret and enforce these rules on adult platforms. It can be challenging for processors to interpret which content is prohibited because credit card networks do not clearly define prohibited content, at times leading to overly strict rules. Adult platforms on their turn need to comply with payment processor rules. Although platforms are risk-averse when facing the potential loss of payment processing, they also have a financial interest in not excessively restricting the content from which they profit, leading to intentionally vague content rules on the platform that engender both over and under-moderation.
The mix of punitive measures with vague rules across the chain of command leads to selective over-moderation, limiting the types of content sex workers can produce.
Payment intermediaries’ rules are opaque and lack accountability, leaving the adult industry with little influence over the regulatory process.
Industry representatives criticize Visa and Mastercard for not involving the adult industry in drafting rules, with Mastercard meeting industry representatives only once after publishing new requirements.
The lack of accountability in the regulatory process creates uncertainty and limits the industry’s ability to influence the rules that govern their operations in punitive and non-democratic ways.
The regulatory framework set by payment intermediaries does not reflect the interests of sex workers, impacting their livelihoods and labor practices.
Research shows that 90% of sex workers experienced adverse effects from Mastercard’s 2021 rules, with disproportionate impacts on queer, Black, kink, and fat sex workers.
The regulatory process prioritizes corporate interests over the needs of sex workers, highlighting the need for worker-centered platforms and regulatory frameworks.
Advice:
Payment intermediaries need to be investigated and held accountable as
regulators of online sexual commerce, and more generally as key actors in platform governance.
Accountability in the regulatory process needs to shift, both toward the industry as a whole and more specifically toward workers, to ensure that regulatory principles, such as “consent,” and decisions are informed by workers’ lived experiences and interest. This would prevent such principles from being broad, underdeveloped standards that primarily serve to protect corporate reputations, and minimize legal risks, and from being inconsistently enforced to safeguard platform profits.