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Cameron Armstrong
@cameron
$6.6B in consumer spend on OnlyFans last year and no serious crypto competitor is WILD https://x.com/ballmatthew/status/1832064136798408835
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Leo
@lsn
Thinking about the economics of this Payment fees are no more than 4% Crypto is 0% basically, but all the other costs in the business are still there Crypto doesn’t reduce the cost that much; why would someone compete just to do 4% better?
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Cameron Armstrong
@cameron
So it’s not as straightforward as max 4% chargebacks (like when a spouse discovers a porn payment and the person goes oh that wasn’t me and reverts the CC payment) still incur fees paid by the creator/site and this happens a lot with porn plus failed payments occur at a higher rate both on the customer AND processor level (they have automated AML measures that stop suspicious txns but the criteria opaque to end users). It’s so bad typically adult sites will often implement some sort of payment processor waterfall in case they need to try again with a diff method. This all drives up the blended cost also 4% on OF revenue is an extra 40 mil 🤷♂️
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Leo
@lsn
Both these points are costs, so if it’s not max 4%, it’s even lower than 4% I don’t think it’s about the extra profit: it’s about ‘does crypto make this so much better that people move despite the sunk cost’ And 4% cheaper transactions will not do that What can move the dial is censorship resistance, but legally that is an iffy area.
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Cameron Armstrong
@cameron
I don’t understand your first point
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