3 Minutes
Industry Under Scrutiny: Payment Processors and Adult Game Content
The digital gaming marketplace is facing turbulent times following a recent crackdown on games containing adult content. Sparked by public criticism and advocacy group interventions, major payment processors like Mastercard have come under the spotlight, accused of driving these restrictions behind the scenes. Mastercard, however, strongly refutes these allegations, igniting a debate about who is really calling the shots when it comes to regulating the sale of mature video games.
Mastercard Responds to Allegations of Pressure
In response to mounting headlines, Mastercard released an official statement emphasizing that it has neither "evaluated any game nor required restrictions" on platforms that host creator-driven content. The company clarified that while it does mandate merchants implement safeguards to prevent unlawful purchases—including those linked to illegal adult content—it does not impose direct restrictions on the type of content game platforms may offer.
Advocacy and Marketplace Change
This controversy arose after the advocacy group Collective Shout published a public letter targeting executives at tech giants such as PayPal, Mastercard, and Visa. The group criticized these companies for enabling transactions involving games accused of depicting sexual violence and child abuse. In the immediate aftermath, leading online games marketplaces responded: Steam announced a ban on titles violating "payment processor and partner bank rules," while Itch.io began removing adult games from its platform during a comprehensive content review.
Valve’s Perspective: A Dispute Over Communication
Despite Mastercard’s denials, Valve—the company behind Steam—shared a contrasting view. In statements to major tech media, Valve revealed that Mastercard had not contacted them directly, choosing instead to relay concerns through third-party payment processors and their banks. Valve stated that it tried to clarify its longstanding policy, allowing only legally distributable games since 2018, but found these reassurances rejected by intermediaries. According to Valve, payment processors highlighted the potential "risk to the Mastercard brand" and cited company regulations against enabling "brand-damaging transactions."
Itch.io and Stripe: The Ongoing Negotiations
As the debate intensified, Itch.io took interim steps by re-indexing free adult games and engaging in negotiations with payment partners such as Stripe. Stripe, meanwhile, reaffirmed its inability to support sexually explicit content, attributing the restriction to its banking partners’ requirements.
Market Impact and Industry Comparisons
This escalating dialogue between payment processors, banks, and game storefronts raises important questions about the responsibility and authority platforms have in moderating digital content. Compared to traditional retail, where content restrictions are more clear-cut, digital marketplaces must constantly adapt their policies amid regulatory, financial, and public pressures. For game developers and digital creators, this evolving landscape underscores the need to carefully review platform guidelines and payment partner requirements when seeking to distribute adult-oriented or otherwise controversial content globally.
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