My understanding is that this industry has way higher than average chargeback/fraud rates, which is really what discourages payment processors/banks from wanting to support them.
Banks are notoriously risk-averse. This is a disruption waiting to happen for the first person who can crack handling sex-worker credit card payments despite the banks.
* Laundering money (buy accounts with stolen cards, sell them using crypto to people who don't want to be associated with the accounts).
* People falsely claiming fraud to cover up the payments (ex. a spouse finding out about them).
* More specific to OF, people paying for private/custom content and then filing a chargeback.
I think people being prudish is kind of what allows this market to be ripe with fraud. I'm not sure there's a way to "disrupt" this industry using credit cards just due to the inherent tendency for fraud in the market.
I don't think there's anything intrinsic about the sex industry that makes it more fraudulent. I think it's much more about the prudishness and societal attitudes that makes it so. Also the long association with organised crime, obviously.
I wonder how this works in countries (like the Scandinavians) where the sex industry is more accepted and there's less prudishness? Are the banks still excluding them there?
Except in 2008 when they were idiotic. I felt the need to point out that one specific data point among the trend that otherwise agrees with you.
That means there is already an userbase for crypto porn.
If it was just covering the chargebacks it'd be easy.