These are uncertain times for adult merchants. With compliance tightening and age verification mandates rising, the barrier to entry keeps getting higher.
Between the Visa Integrity Risk Program (VIRP) rolled out in 2023, the Visa Acquirer Monitoring Program (VAMP) set for enforcement this month and recent tightening up on acquiring solutions in the U.S., acquirers are under pressure. On paper, programs like strict compliance ratios of 0.50% are meant to keep the banks in check, but in reality, that pressure inevitably trickles down to merchants in the form of tighter oversight, higher costs and even the loss of accounts.
For our industry, crypto isn’t just about efficiency; it’s about survival.
On top of all this, add mandatory age verification into the mix. Before approving new programs, acquirers now insist that merchants be compliant worldwide. For many in our industry, especially smaller or newer merchants, the cost and complexity can feel like a brick wall. It’s no wonder that folks are seeking alternative payment solutions — and many are looking to cryptocurrency.
Stablecoins and the Banking World
Today, traditional banks and investment firms are increasingly involved with digital assets, with a focus on USDT (Tether) and USDC (USD Coin), both of which are tied to the U.S. dollar to help reduce volatility. Investment firms also mix their holdings: stablecoins for predictability, Bitcoin and Ethereum for growth potential. At the same time, U.S. banks are exploring their own regulated stablecoins to speed up transactions and compete with crypto-native players. Even Visa has joined in, using stablecoins to settle funds between issuers and acquirers globally.
A Boost from Washington
There has been tremendous support for crypto from the Trump administration, which has been putting more structure around crypto and further legitimizing it. On his third day in office, Trump signed an executive order supporting and promoting the responsible growth and use of digital assets, blockchain and related technologies.
In July, we also saw the GENIUS Act (Guaranteeing Essential National Infrastructure in U.S. Stablecoins) signed into law. It basically gives stablecoins a rulebook, requiring full reserve backing, setting standards for issuers and cracking down on scams that have plagued the industry. The bigger story, however, is that it provides real regulatory clarity. The GENIUS Act demonstrates that digital assets are being taken seriously at the highest level and will be supported — at a moment when traditional acquiring is becoming harder for the industry to navigate.
Why Crypto Matters in Adult
For our industry, crypto isn’t just about efficiency; it’s about survival. Consumers value the anonymity, security and freedom it provides, especially when they don’t want adult purchases tied to their credit cards. Merchants appreciate that there are no chargebacks or refunds. Once a transaction goes through, it’s final — a welcome change from the endless disputes we see with card payments. And because crypto doesn’t recognize borders, it makes it much easier to reach customers globally without worrying about local banking restrictions.
In my experience, the biggest value-add has been in cross-border payments. I can’t tell you how many times we’ve had wires get stuck in intermediary banks and then spent hours, sometimes days, trying to figure out where the funds went. With crypto, that frustration is gone. The money moves.
Adult merchants have therefore embraced crypto as a way to tackle our challenges with the banking system. Many cam and fan platforms offer crypto as a payout solution for content creators, giving performers faster access to their earnings without waiting on banks. Merchants who rely heavily on affiliates often turn to crypto to move money across borders without all the delays and fees. I’ve even seen it used to support regions where banking access is unreliable or nonexistent. In other words, crypto is no longer the abstract “future of payments.” It’s already here, and in many ways, our industry has been ahead of the curve in adopting it.
A Work in Progress
That said, crypto isn’t perfect. Right now, most of what we can process are one-time payments, which makes it tough for membership sites. I’ve seen situations where we can’t even be certain a $29.99 subscription fee was processed exactly as intended. Recurring billing is still a challenge, but I’m encouraged by the new solutions being developed. For now, merchants use workarounds like sending automated renewal emails, but a more seamless rebilling option is coming.
Crypto isn’t a magic fix, at least not yet. But it’s one of the few viable tools merchants can lean on today to push back against the squeeze. As more consumers adopt it, especially younger buyers who grew up with digital wallets and alternative payment methods, crypto is becoming harder to ignore.
Our company’s crypto provider said to me recently, “If you aren’t using crypto, you’re a dinosaur.” As blunt as that sounds, maybe it’s time to admit they’re right. Let’s not let our industry go extinct.
Cathy Beardsley is president and CEO of Segpay, a merchant services provider offering a wide range of custom financial solutions including payment facilitator, direct merchant accounts and secure gateway services. Under her direction, Segpay has become one of four companies approved by Visa to operate as a high-risk internet payment services provider. For questions or help, contact sales@segpay.com or compliance@segpay.com.
