If you are a high risk business owner in the sexual wellness vertical, or looking for ways to grow sales within your niche in adult industry or perhaps a software vendor supporting adult marketplaces, then read this now.
Trendhunter says, when any form of media is presented in innovative and immersive formats, consumers are more likely to enjoy the experience they have with it. Interactive digital content is more popular than ever because it makes consumers feel like they’re part of the story being told, rather than just a passive observer of it.
Makes sense, doesn't it?
Artificial Intelligence (AI) is revolutionizing the way adult content is created and consumed. It can directly increase revenue for businesses in this high-risk industry. However, this transformation comes with its own unique challenges and risks that must be addressed on a priority.
From sexual wellness pop-up stores within the Metaverse to AI-led content creation and virtual experiences, there’s something new happening at every end.
- AI & Personalization: AI-powered virtual assistants and chatbots are being used by adult content providers to offer personalized customer support and guidance to users. These tools can help users find the content they’re looking for more quickly and easily, improving their overall experience. AI-powered dashboards are critical in analyzing data on viewing patterns, search history, and other factors, so that a business can make personalized recommendations for each individual viewer. (Source: Bernard Marr, Forbes)
- Content moderation: AI tools are increasingly being used to moderate user-generated content in the adult industry, including comments, images, and videos. By using image and text recognition algorithms, AI can quickly flag potentially inappropriate or harmful content, helping to keep users safe and improving the overall quality of the platform. (Source & Business Insider)
- Payment Processing: There’s no denying the fact that the porn and adult entertainment industry continues to top the list of ‘most high-risk industries’ for payment processing. One of the key benefits of high risk payment solutions is the ability to reduce fraud and chargebacks. By using machine learning algorithms, these payment solutions can detect patterns of fraudulent activity and can take action to prevent it, reducing the risk for both content providers (business owners) and mitigate the risk of being de-platformed by the payment processor.
- Flexibility in accepting payments: There are specialized payment solutions that can serve the adult industry by offering more flexible payment options, alternative payment methods like Google Pay or Apple Pay, faster processing times, and improved customer service. TickleCharge is one of the payment providers that has designed its solution specifically to meet the unique needs of the adult industry.
- Fraudsters beware: AI tools are being used to modernize know-your-customer (KYC) and identity verification (IDV) processes. Its ability to sort through vast amounts of transactions and detect anomalies goes back to the core fraud mitigation use case that most financial institutions and merchants are already using. (Pymnts)
As AI technology continues to advance, it is expected that transaction experiences for consumers will improve.
In the past, shoppers who had their cards declined would often stop spending on that card or at that particular merchant outlet, which negatively impacted both the merchant’s revenue and reputation, as well as that of the card issuer. Additionally, consumers making high-value purchases in the online world have often experienced frustration at checkout due to false fraud detection alerts. According to Mastercard, by reducing these incidents, AI can increase transaction volume for merchants and improve consumer satisfaction and trust in digital transactions. Improved sources of data available for analysis will help in improving AI-led transaction experiences!
Without the right payment solutions, adult businesses open themselves to financial losses, legal challenges, and reputational damage. To fully unlock the potential of AI in high risk industries like adult and sexual wellness or devices, it’s imperative to seek a payment processing solution that understands both, the regulatory environment and commercial interests.
It’s time to leverage the power of AI, and create more engaging, personalized experiences for your users, while also improving business efficiency and reducing costs. TickleCharge understands the challenges of this industry and is working actively with several adult businesses to ensure they remain future ready. Join Us!