trends

Alternative Website Billing

Although some of you are probably not feeling it, thanks in main to tubes and torrents, if the research companies are to believed, we are all part of a multi-billion dollar industry whose primary billing mechanism has historically been the credit card, and more recently, the debit card.

However, if Visa and/or Mastercard were to seize the moral high ground for whatever reason, premium web content owners will have no other alternative than to source alternative billing mechanisms to turn all those bytes into bucks.

Of these, phone billing is probably the most well known method. The successor to the dialer, phone billing is powered by premium rate numbers whose tariffs and out-payments vary from country to country.

With such billing, there are two primary mechanisms: pay-per-access (PPA) and pay-per-minute (PPM). With PPA, the ordering process creates the revenue — how much access time is granted is up to the content owner. As for PPM, immediate access to the desired content is granted for the time that the customer remains connected to a premium rate number.

Premium Short Message Service (PSMS) is telephony based payment channel that can be used to charge for access to premium web content. Subscribers are charged either when they send a short-code text message to request a product (known as Mobile Originated or MO billing) or when they receive a product on their phone (known as Mobile Terminated or MT billing). PSMS revenues are shared by the content provider, aggregator and the operator. PSMS is currently supported in 28 territories, across Western Europe, North America and Asia.

Whilst a raft of other alternative processors exist that facilitate anonymous payments to capitalize on the growing army of 'digitally nervous' customers who are afraid of using their cards online, a credit or debit card is usually needed in order to fund their accounts.

One notable exception to this is the London based www.ukash.com whose patented solution allows end-users to pay for online content or tangibles using cash at one of over 275,000 points-of-sale such as convenience stores, corner shops and post offices. Users are then issued a secure and unique 19-digit voucher which assures payment when presented online. Research conducted by the company has concluded that approximately 80 percent of users already have a credit or debit card, but prefer the safety and anonymity afforded to them when paying for goods or services this way.

Clearly, cash, which is still the favored form of money in most countries, has not been suited as a payment method for ecommerce in the past for obvious reasons. But with such a wide and extensive network of vendors already in place who can readily convert it to a valid e-voucher for online commerce, industry observers are predicting that such billing is set to become an increasingly popular payment mechanism with both merchants and users alike.

In an era of increasing online fraud and identity theft, the more payment options that webmasters can give prospective customers, the better. Perhaps one day such payment methods might just become the primary, not secondary, methods of payments on join pages.

Related:  

Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

profile

VerifyMy Seeks to Provide Frictionless Online Safety, Compliance Solutions

Before founding VerifyMy, Ryan Shaw was simply looking for an age verification solution for his previous business. The ones he found, however, were too expensive, too difficult to integrate with, or failed to take into account the needs of either the businesses implementing them or the end users who would be required to interact with them.

Alejandro Freixes ·
opinion

How Adult Website Operators Can Cash in on the 'Interchange' Class Action

The Payment Card Interchange Fee Settlement resulted from a landmark antitrust lawsuit involving Visa, Mastercard and several major banks. The case centered around the interchange fees charged to merchants for processing credit and debit card transactions. These fees are set by card networks and are paid by merchants to the banks that issue the cards.

Jonathan Corona ·
opinion

It's Time to Rock the Vote and Make Your Voice Heard

When I worked to defeat California’s Proposition 60 in 2016, our opposition campaign was outspent nearly 10 to 1. Nevertheless, our community came together and garnered enough support and awareness to defeat that harmful, misguided piece of proposed legislation — by more than a million votes.

Siouxsie Q ·
opinion

Staying Compliant to Avoid the Takedown Shakedown

Dealing with complaints is an everyday part of doing business — and a crucial one, since not dealing with them properly can haunt your business in multiple ways. Card brand regulations require every merchant doing business online to have in place a complaint process for reporting content that may be illegal or that violates the card brand rules.

Cathy Beardsley ·
profile

WIA Profile: Patricia Ucros

Born in Bogota, Colombia, Ucros graduated from college with a degree in education. She spent three years teaching third grade, which she enjoyed a lot, before heeding her father’s advice and moving to South Florida.

Women In Adult ·
opinion

Creating Payment Redundancies to Maximize Payout Uptime

During the global CrowdStrike outage that took place toward the end of July, a flawed software update brought air travel and electronic commerce to a grinding halt worldwide. This dramatically underscores the importance of having a backup plan in place for critical infrastructure.

Jonathan Corona ·
opinion

The Need for Minimal Friction in Age Verification Technology

In the adult sector, robust age assurance, comprised of age verification and age estimation methods, is critical to ensuring legal compliance with ever-evolving regulations, safeguarding minors from inappropriate content and protecting the privacy of adults wishing to view adult content.

Gavin Worrall ·
opinion

Account-to-Account Payments: The New Banking Disruptor?

So much of our industry relies upon Visa and Mastercard to support consumer payments — and with that reliance comes increased scrutiny by both brands. From a compliance perspective, the bar keeps getting raised until it feels like we end up spending half our time making sure we are compliant rather than growing our business.

Cathy Beardsley ·
profile

WIA Profile: Samantha Beatrice

Beatrice credits the sex positivity of Montreal for ultimately inspiring her to pursue work in adult entertainment. She had many friends working in the industry, from sex workers to production teams, so it felt like a natural fit and offered an opportunity to apply her marketing and social media savvy to support people she truly believes in and wants to see succeed.

Women In Adult ·
opinion

Understanding the Latest Server Processors

Over the last decade, we mostly stopped talking about CPU performance. Recently, however, there has been a seismic and exciting change in the CPU landscape, due to innovation by a chip company called Advanced Micro Devices (AMD).

Brad Mitchell ·
Show More