Pornhub's Financial Payment Processor Problems
Background on Pornhub
Pornhub is a Canadian-owned internet pornography video-sharing website, one of several owned by adult entertainment conglomerate Aylo. Founded in 2007, Pornhub has grown to become one of the most visited websites in the world, providing a massive platform for both amateur and professional adult content.
The website has faced numerous controversies over the years, particularly concerning user-uploaded content and its verification policies. These issues have not only attracted public scrutiny but also resulted in significant repercussions regarding its relationship with financial payment processors.
The Role of Financial Payment Processors
Financial payment processors are essential entities in the world of electronic payments. They act as intermediaries that facilitate transactions between merchants and consumers, ensuring the smooth transfer of funds. Major players in this industry include Visa Inc. and Mastercard Inc., both of which offer various payment solutions for merchants around the globe.
In addition to Visa and Mastercard, other notable payment processors include PayPal, Stripe, Inc., and Global Payments. These companies provide a range of services, from online payment gateways to mobile payment solutions, making them indispensable for e-commerce businesses.
Controversies and Actions Taken
In December 2020, a New York Times article by Nicholas Kristof titled "The Children of Pornhub" accused Pornhub of hosting illegal content, including videos of rape and child exploitation. The article sparked widespread outrage and led to immediate actions from major payment processors.
- Mastercard and Visa announced that they would no longer allow their cards to be used on Pornhub. This decision was based on the allegations that Pornhub had failed to effectively monitor and remove illegal content from its platform.
- As a consequence of these actions, Pornhub removed millions of videos uploaded by unverified users and implemented more stringent content verification policies.
Previously, in 2019, PayPal also severed ties with Pornhub, citing compliance issues. This left many content creators who relied on PayPal for their earnings to seek alternative payment methods.
Impact on Pornhub and Its Users
The severing of ties with major payment processors had a profound impact on Pornhub and its community. Content creators, particularly those who depended on Pornhub for their revenue, faced significant financial challenges. With limited payment options, many turned to cryptocurrencies or alternative platforms to receive payments.
Pornhub's parent company, MindGeek, faced increased scrutiny and legal challenges. The company had to enhance its content moderation practices and rebuild trust with both users and financial institutions. Despite these efforts, the loss of support from major payment processors has had lasting effects on Pornhub's business operations.