Recent crackdowns on games with adult content in online marketplaces have sparked controversy, with many attributing the actions to pressure from payment processors. Mastercard responded to these claims with a statement clarifying its position. The company denied evaluating games or imposing restrictions on game creator platforms, contradicting media reports. However, Mastercard emphasized that it requires merchants to implement controls preventing the use of its cards for unlawful purchases, including illegal adult content.
The debate intensified following an open letter from the advocacy group Collective Shout, which criticized payment processors like PayPal, Mastercard, and Visa for allowing the sale of games depicting extreme content such as rape, incest, and child sexual abuse. Shortly after, Steam announced it would ban games violating the policies of its payment processors and associated financial institutions. Itch.io followed by removing adult content from its browse and search pages while conducting a broader review.
Mastercard’s statement appeared to challenge the narrative that payment companies were directly pressuring marketplaces. However, Valve, Steam’s parent company, countered with its own account. According to Valve, Mastercard did not communicate with them directly, despite their request. Instead, Mastercard relayed its concerns to payment processors and acquiring banks, who then informed Valve. Valve stated that it reiterated Steam’s long-standing policy of distributing only legally permissible games, but payment processors rejected this response, citing risks to Mastercard’s brand and referencing rules against illegal or brand-damaging transactions.
Meanwhile, Itch.io announced it is re-indexing free games with adult content while negotiating with payment processors like Stripe. Stripe clarified that it cannot support sexually explicit content due to restrictions from its banking partners.
The situation highlights the complex relationship between game marketplaces, payment processors, and financial institutions, with each party navigating legal and reputational concerns while balancing content moderation and business operations.