⚖️ Payment Processors Pressuring Content Distributors

Steam and Itch.io Respond to Payment Pressure on Adult Content

In recent weeks, digital game marketplaces Steam and Itch.io have removed or restricted adult content titles following what appeared to be pressure from payment processors. The flashpoint was a letter from advocacy group Collective Shout criticizing Mastercard, Visa, PayPal, and others for facilitating the sale of games like “No Mercy,” which contain disturbing themes such as rape and child abuse. In response, Mastercard issued a rare public statement denying that it had directly required any game removals, though it reiterated its requirement for merchants to block “unlawful purchases.” Valve, which owns Steam, countered that payment processors acting on Mastercard’s behalf rejected its compliance policies, citing brand risk concerns. Meanwhile, Itch.io is limiting the visibility of explicit games while renegotiating with Stripe, which has stated that it cannot support explicit content due to its banking partners.

The Quiet Influence of Financial Infrastructure

This situation highlights how much influence payment processors and their upstream banking partners have over digital platforms, even when they do not directly issue takedown demands. Mastercard might not have explicitly banned certain games, but its rules against “brand-damaging transactions” effectively create enforcement pressure. Payment processors, wary of risking their merchant relationships, tend to act cautiously. Platforms like Valve are caught in the middle, facing enforcement pressure from processors who interpret vague brand protection clauses. These dynamics often occur behind the scenes, and public statements rarely reflect the complex compliance ecosystem that mediates legal content distribution.

Don’t Underestimate Gatekeeper Risk

If your startup relies on digital payments or user-generated content, be aware that your payment processors and their banks can influence what you can sell or host, even if it’s lawful. Terms of service regarding “reputation risk” are broad and often non-negotiable. Founders should proactively review their agreements with payment partners and understand which types of content, business models, or customer segments might attract scrutiny. If you’re building a platform that hosts third-party content, establish policies now that align with the acceptance criteria of your payment infrastructure partners. Most importantly, diversify your payment options or consider using backup providers to prevent your business from being halted if one gatekeeper withdraws.

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