Whenever I check in with clients these days, I encounter the same concerns. For many, business never quite bounced back after the typical post-holiday-season slowdown. Instead, consumers have been holding back due to the economic uncertainty around the Trump administration’s new tariffs and their impact on prices. People may not be panicking, but they’re definitely watching the economic landscape more closely. At Segpay, we’re still seeing some growth in Q2, but most of it is coming from new net business while our base of existing merchants is holding steady with just a small amount of growth.
Since Tariffs only apply to physical goods passing through a border, they don’t impact digital products and services in quite the same way. Nevertheless, the ripple effects are still reaching everyone, including businesses in the adult space. This month, we break down how this can impact you — and what you can do about it.
In addition, even if you’re 100% digital, you still rely on hardware.
Direct Impact: Physical Goods, Production and Tech Costs
If you sell tangible items, chances are you’re already feeling the pinch. Toys, sexual wellness and other products developed and manufactured outside the U.S. are currently facing significant challenges due to increased tariffs. Many businesses are struggling with their pricing models due to the unpredictable landscape this has created.
In addition, even if you’re 100% digital, you still rely on hardware. Phones, cameras, lighting and audio gear come mostly from tariff-affected countries like China, Japan and Thailand, so even if you’re just updating a clip setup or investing in studio gear, you’ll likely feel it in your wallet more.
The same goes for hosting providers facing increased costs for the technology they provide to help adult businesses run. Components like semiconductors, and materials like aluminum and steel, have all been hit by tariffs. Those costs may be passed on to you.
Tariffs and Currency Shock
If you operate internationally, you have likely seen a big decrease in the conversion rate for U.S. dollars compared to euros, the British pound and other currencies. Why the dip? Investors are pulling back from U.S. assets due to tariff uncertainty and redirecting their funds elsewhere. That, plus a cooling U.S. economy, could push the Fed to lower interest rates, making U.S. investments even less attractive. And let’s not even talk about our 401(k)s or college funds right now.
Consumer Confidence Is Wobbly
The factors discussed above impact business expenses and revenue, but also consumers’ spending habits. Studies have shown that consumers are nervous about the impact of tariffs and the cost of day-to-day living. While consumers are still spending, many are redirecting funds toward essentials, or rushing to make big-ticket purchases before prices go up. That leaves less room for discretionary spending on adult content, cam shows or subscription sites.
What to Do Now: Billing Tips to Stay Resilient
Even though 2025 has gotten off to a decidedly shaky start, there are things you can do to help protect your business and peace of mind. Here are a few best billing practices that can help you weather the storm and keep your business growing:
- Alternative payment methods (APMs). Are you taking advantage of all of the APMs to better convert consumers from outside the U.S.? APMs can also be much less expensive than credit cards and are not as restrictive.
- Retention first. Add cancellation offers or loyalty discounts. It’s cheaper to keep an existing customer than to win a new one.
- Upsell and cross-sell. Whether within your own site network or via platform integrations like Streamate, IMLive or Flirt4Free, look for ways to add value with minimal overhead.
- Test price points. Try lower-cost trials or annual memberships to see if that makes an impact on your revenue. If you’re not offering a subscription model, now is a great time to test one out.
- Rebill smart. Experiment with rebill retry timing — you might find that sweet spot that picks up additional rebills to keep the revenue flowing.
- Remarket. Don’t forget about declined or expired accounts. A little outreach can go a long way.
- Mobile-first. Your payment page and site should work seamlessly across all devices. You’d be surprised at how many still don’t.
- Think local. Localized billing and pricing in a customer’s native currency boosts conversions. If you’re global, consider making euros your base currency to ease dollar fluctuation pressures.
Don’t get stressed; work smarter. We’re in uncertain times, but with a smart billing strategy, adaptability and a calm head, there’s still plenty of opportunity to grow.
Cathy Beardsley is president and CEO of Segpay, a merchant services provider offering a wide range of custom financial solutions including payment facilitator, direct merchant accounts and secure gateway services. Under her direction, Segpay has become one of four companies approved by Visa to operate as a high-risk internet payment services provider. Segpay offers secure turnkey solutions to accept online payments, with a guarantee that funds are kept safe and protected with its proprietary Fraud Mitigation System and customer service and support. For any questions or help, contact sales@segpay.com or compliance@segpay.com.
