There’s a saying in tech — once the adult entertainment industry adopts something, it’s likely to succeed. From instant cameras to pay-per-view TV, VCRs to Blu-Ray, adult content companies have often been among the first to adopt new technology that has gone on to find wider success.
Decentralized Vision, a blockchain company that is taking on the billing industry, announced today that dozens of companies from a variety of industries have committed to adopting the PumaPay PullPayment Protocol. And a significant percentage of these partnerships are in the adult entertainment industry.
“[The] adult entertainment industry has always been keen on innovation,” Muly Litvak, a strategic investor at PumaPay, told me. “In the case of PumaPay, it is a perfect fit for adult entertainment companies for a number of reasons. Credit card companies classify adult entertainment as a ‘high-risk’ industry, with the processing fees going as high as a whopping 4-8 percent.”
Lower fees are not the only reason for adoption, however.
“Furthermore, the morale of the clients is not the best, and they may end up doing reverse transactions (chargebacks) for various reasons,” Litvak said. “This results in huge losses and fines for the merchant, and this factor is hard to overestimate. According to a research study conducted by Juniper, retailers are on track to lose $71 billion in Card Not Present (CNP) fraud losses globally in a year.“
Blockchain payment solutions, then, could provide a suitable solution for not just the adult entertainment industry, but other organizations that need to solve similar issues.
“So far, there has not been a blockchain solution that could meet all these merchants’ needs, especially recurring payments,” Litvak said. “Therefore, crypto money was rarely spent on adult entertainment services. PumaPay will be able to solve all of these problems, as we’ll provide immediate transactions with incredibly low fees. The transaction will be final, so once it goes through, the merchant is guaranteed to get their money. The businesses can continue to accept payments the way they do today, but without the associated drawbacks.”
The problem is this. Cryptocurrencies are not known for high-speed transactions right now, and transaction costs are increasing. How is PumaPay different?
“This is one of the problems we are trying to solve,” Litvak said. “In spite of the multiple disadvantages of the current payments system, it still offers the benefits of immediate transactions (at least from the consumer’s perspective) and bearable fees. Until recently, crypto payments couldn’t compete with that. PumaPay will be built on the next generation blockchain, ORBS, enabling nearly immediate transactions and low fees, so it will be a good fit for micropayments and daily use.”
PumaPay’s ultimate goal is to sign 300 partners, and not just in the adult entertainment industry. While the likes of ImLive, LoadedCash, AEBN, and Xbiz have already signed up, the current list of active partners also includes brands such as FashionTV, Backpack, and Moburst.
“We have already signed over 30 partners,” Litvak said. “Although the adult entertainment industry is very enthusiastic about the protocol, it is not the only one, as we are also joining forces with representatives of other industries, both online and offline. This includes everyone from local grocery stores and gyms to online dating sites, payment processing companies, ecommerce brands, and more in every corner of the world.”
So what’s next for PumaPay and what does the future hold for cryptocurrency payments that work in real-world environments?
“The vision of PumaPay is to disrupt the current payments system and eventually to become the default payment method worldwide,” Litvak said. “We believe that blockchain-based payments are the future, and it’s about time somebody replaced the outdated centralized payments system. Right now, our immediate goal is to complete the crowdsale and get as much support and funding as we can, so we can develop the protocol and align it with as many early adopters as possible. This is not an easy task, but we’ve got a highly capable and committed team who is standing up to the challenge, and we’re excited to share PumaPay with the world.”
PumaPay is now in the pre-sale stage, with an ICO planned for March 22, 2018.