Pornhub and Tether Team Up to Provide Payment to 100,000+ Models

The internet erupted into widespread panic in late 2019 following the announcement that PayPal would no longer be supporting payments for the services offered on the internet’s most popular adult entertainment site, Pornhub. For years, PayPal served as a discrete method for users to provide payment to the over 100,000 performers active on the site. Seemingly out of nowhere, PayPal sent out an email statement regarding the changes in their payment policy:

Following a review, we have discovered that PornHub has made certain business payments through PayPal without seeking our permission. We have taken action to stop these transactions from occurring.”

Due to the abrupt nature of the announcement, Pornhub did not have time to put additional payment option plans into effect. They do have a few other payment options like Verge cryptocurrency, but PayPal was undoubtedly the primary method of payment.

PayPal’s Reasoning

Although PayPal spokespeople have declined to elaborate on the reasoning for the removal of their services from the site, many have speculated that their rationale most likely had something to do with the “Allow States and Victims to Fight Online Sex Trafficking Act.” This act was one of the measures included in the two federal anti-sex trafficking laws that have broad implications for those operating in the tech industry. This is merely speculative, but it is explicitly stated in PayPal’s acceptable use policy that they maintain the right to ban transactions pertaining to “certain sexually oriented materials or services.”

Stablecoins to the Rescue

In a blog post published this morning (January 23rd, 2020), Pornhub announced that their platform will be accepting Tether (USDT), a major USD backed stablecoin, as a form of payment on their site. This is big news for the patrons and the models, as the wallet is easy to download and use. Tether allows for instant and zero-fee payments through the browser extension and wallet TronLink, which is a native wallet for Tron (TRX). Tron and Tether have been working together to provide fast and reliable payment services since they announced their partnership early in 2019.

Lucrative Use Case

One of the major criticisms of cryptocurrency has been the lack of ability to be used as a medium of exchange. It has been well-established that when used correctly, crypto can provide a secure and discrete way to instantaneously transfer funds, qualities that make it well-suited for use on adult entertainment sites.

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