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Pay Pal’s prohibition on adult merchants has become the norm for most other payment processing companies, but the fear of adult business is a trickle-down effect from the rest of the finance industry, which is, in a word, contemptuous of adult content.
But Patreon wasn’t the first to feel pressure from Pay Pal about adult content.
In 2003, Pay Pal announced that it would no longer process payments for adult content of any kind.
Patreon, backed into a corner by Pay Pal’s unexpected and time-sensitive threat, alerted its adult-oriented users that their accounts would be flagged as NSFW and blocked from search results, and their payments restricted to credit cards only, in order to avoid catastrophe for everyone using the site.
Patrons who had been using Pay Pal to support adult content creators were required to change their payment methods, or payments would be frozen and ultimately lost.