opinion

Prepaid Cards A Popular Alternative

To a U.S. resident who is hoping to make a major purchase like a house or a car, having a good credit score and a history of responsible credit card use is a major consideration. Yet in many other major developed countries, credit cards are not held in such high regard. In those countries, the majority of adult entertainment-related transactions occur without credit cards. and one of the alternative billing methods that has continued to grow in popularity is the prepaid or preloaded method. Prepaid cards and ewallets (also called “digital wallets”) are a viable alternative billing method in different parts of the world, and that is true in both mainstream and adult e-commerce.

Many billing companies have offered prepaid options, including Failsafe payments and Yespay. New York city-based Payoneer offers its own prepaid Mastercard, as does the widely used paypal.

Thinking globally is crucial for webmasters who want to maximize their profits and keep their customers, models and affiliates happy.

Ruth Blair, sales manager for Paxum (a leader in the prepaid sector), said that one of the main advantages of the prepaid method is “security.” With the prepaid method, one adds funds to an e-wallet or card electronically — and the funds are used to make payments. Paxum, Blair said, offers not only security, but also “flexibility,” which is an important consideration given the adult industry’s increasingly digital, increasingly global outlook.

Indeed, most porn-related transactions are made online these days, and many of them are international. An adult webmaster who is based in the U.S. might be billing customers in Germany, Switzerland or France and have affiliates in Australia or New Zealand and models in the Czech Republic or Hungary. Thinking globally is crucial for webmasters who want to maximize their profits and keep their customers, models and affiliates happy — and the prepaid method, according to Blair, makes it easier for webmasters to think globally.

“Many adult entertainment companies have expressed their satisfaction at the ease with which they can pay their affiliates and models through the paxum e-wallet,” Blair noted. “With paxum, they enjoy the ability to pay everyone no matter where they are in the world. this is especially important since many payees live in remote areas and have little or no access to mail or banks. This saves time, money and, of course, headaches, while allowing the sponsors to benefit from every affiliate or model, wherever they may be. Moreover, Paxum is the only program that offers instant prepaid card loads, giving everyone quick access to their funds. However, it is important to mention that paxum is more than just a prepaid card; it is a complete payment system. the e-wallet account allows account holders to pay their bills directly from their paxum account, thus offering even more flexibility. By using a method such as paxum for payouts, companies located anywhere in the world can enjoy flexible real-time global payments, while the people on the receiving end get instant access to funds, wherever they may be.”

Americans who are in the habit of frequently checking their credit scores and seeing what Experian, Transunion and Equifax have to say about them might tend to forget how popular alternative billing/payment methods are in other developed countries. But in fact, successful adult webmasters who think globally are likely to be dealing with people who don’t even own credit cards. Blair pointed out that credit card penetration is relatively low in some major european economies, which makes prepaid cards an attractive option in those places.

“Within our service, we have noticed a reasonable percentage of our personal clients reside in europe, especially since it is rather difficult to acquire credit cards,” Blair observed. “It may seem strange, but Germany and Holland have a very low (credit) card coverage — and the prepaid cards serve as more than just as a way of receiving funds. they are used for online purchases in lieu of a bank-issued credit card, while the paxum e-wallet is also popular for paying services such as hosting, design and programming, which every webmaster needs. Therefore, a service such as Paxum is a welcome addition for our european customers. Of course, the advantageous fee structure offered by the Paxum e-wallet, and the elimination of expensive wires and mailed checks, make it all worthwhile. We also have clients in eastern europe — where programmers are also in high demand — and asia and america, where the webmasters have rewarded us for listening to their demands and tailoring a product that will satisfy their needs.”

Blair added that the more American webmasters explore alternative billing methods, the more they see the wisdom of e-wallets. “at paxum, we have a reasonable percentage of North American customers, including business clients,” Blair said. “in today’s economy, it is normal for people to be more worried about their funds than they used to be since a few programs offering cards in the past have made huge management mistakes or never took off, and have been run out of business. This makes people understandably apprehensive, and we understand that it will take time for people to regain trust in this particular segment of the business. We keep a constant online presence, as well as at trade shows, in order to appease the situation.”

Paxum, according to Blair, remains a favorite among online adult companies because it has kept their specific billing needs in mind. “in the last two years, paxum has become the dominant alternative payment method for most adult entertainment companies, particularly those who operate affiliate programs,” Blair explained. “We have experienced substantial growth in global card distribution not only due to the fact that our card has clear advantages over our competitors, but also, because the multiple options offered by the e-wallet are very appealing to a market that has long been neglected.”

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