January 25, 2024
5 min
Sharing practical advice on payment acceptance for online businesses has become our good tradition. In this article, a case in point is the specifics of online dating payment processing.
Online dating has experienced a remarkable surge in popularity in recent years. The number of online dating service users is anticipated to surge to approximately 440 million individuals actively engaging with online platforms in pursuit of love and companionship by 2027.
So, if you think about creating your own online dating merchant account or want to provide it with payment services, pay due attention to the organisation of online dating credit card processing. We have compiled a list of essential criteria to give you a hand.
3 main peculiarities of online dating payment processing
- Subscription models. Online dating platforms often use subscription-based payment models. Users typically sign up for monthly, quarterly, or annual subscriptions to access premium features and services. This recurring payment structure requires robust billing systems to handle automatic renewals, upgrades, and cancellations efficiently.
- Anonymity and security. Maintaining user anonymity and ensuring transaction security are paramount in online dating payment processing. Given the sensitive nature of personal information exchanged on dating platforms, stringent measures such as encryption protocols, secure payment gateways, and fraud detection mechanisms are essential to safeguard user data and financial details.
- Dynamic pricing and incentives. Online dating services frequently implement dynamic pricing strategies and incentives to attract and retain users. This can involve offering discounts on subscription plans, introducing promotional offers, or implementing tiered pricing based on user demographics, engagement levels, or duration of membership. Adaptable payment processing systems are crucial for implementing and managing these pricing structures effectively.
This niche is one of the most developed in all countries. It includes dating websites and mobile applications connecting people worldwide. Except for specific segments, online dating is absolutely legal. Its relatively small average check but frequent transactions make this niche attractive for entrepreneurs. Starting such a business might seem an easy shot for those who know little about online dating services. But if you bury your head a bit deeper, you’ll face the facts.
Entering the online dating market might be difficult due to strict regulations. Another challenge is the reluctance of banks to cooperate due to the high-risk nature of online dating merchant accounts. Among the reasons are adult content, scams, scheming, and other types of fraud. Online dating platforms often cover illegal businesses, including escort and sexual services.
It is also worth mentioning the high level of chargebacks. Sometimes users subscribe to the services of an online dating platform but do not find a suitable candidate for communication or relationships and decide to request a reimbursement of funds. High chargeback rates are unprofitable for both businesses and financial institutions. This reason often causes banks to refuse such businesses to open merchant accounts.
Types of online dating websites
There currently is a large variety of them. Depending on the profile of the target audience, they can be classified as follows:
- Matchmaking websites offer matches based on tastes, likes, dislikes, etc. users specify in a detailed questionnaire.
- Niche online dating services are intended for communities who share common interests and want to meet like-minded ones (e.g., fans of anime, movies, TV series, or religious groups).
- Preference online dating services have something in common with the previous group and are based on users’ political, sexual, and religious preferences.
- Event sites allow single people to create different events, gather together, and get to know each other.
- Personal online dating sites allow users to specify the criteria that are essential for them each time they use the service and search for matching people independently.
As you can see, there is a range of online dating services to meet the needs and expectations of people worldwide. Many online dating merchants are looking for payment processors to help them run their businesses. So, let’s see what exactly these merchants require.
Online dating merchant account solutions
Finding a relevant payment service provider to meet all the needs and expectations is a massive brick in the foundation of any business. Common ways to monetise a dating website or app are to offer premium memberships, additional features, in-app purchases, virtual gifts, or premium content.
Here is the list of the most wanted payment options for an online dating business:
- Range of payment methods. First and foremost, online dating services are international and unite people around the globe. So, it’s essential to consider that sometimes people prefer using local payment methods. Therefore, in addition to connecting bank cards, pay attention to cross-border payment support and other payment services (e.g. Apple Pay, Google Pay, PayPal, WeChat Pay, and others).
- Direct carrier billing. This option increases the security of mobile payments, which is vital for the merchant’s credibility. This payment method is trendy in those regions where credit cards are not so standard. Users can make purchases by paying to the mobile operator’s account. If your target audience is, say, in South Africa, Mexico, or Zambia, you will need this payment method.
- Premium payment methods (e.g., via SMS) are equally popular and best suited for microtransactions. To pay for goods and services using Premium SMS, a user needs to send a message with an increased tariff. The amount will be instantly debited from the user’s mobile account.
- Mobile billing. Implement mobile payments into your solution, and you’ll increase traffic and conversion rates. Mobile payments are essential because the majority of online dating service users tend to use their phones for texting.
- Crypto payments. Processing cryptocurrencies will help you widen your audience.
- Recurring billing. Many online dating services offer a subscription model for their users, so it will be good to offer recurring billing to be relevant.
- Card payments. A rich choice of card payments is an excellent way to attract more clients. Opt for the most used ones: Visa, Mastercard, AmEx, Maestro, etc.
The features mentioned above will make your solution more attractive to online dating service merchants.
What does Corefy offer to online dating merchants?
Corefy offers online dating platforms a unified payment gateway with the ability to choose and connect from the list of 400+ ready-made integrations with payment providers and acquirers, subscription management tools, and advanced fraud prevention features. With extensive global payment coverage and customisable analytics and reporting capabilities, we enable online businesses to accept payments from users worldwide while gaining valuable insights into their payment operations. Corefy's payment processing solution streamlines the subscription process, enhances security, and facilitates cross-border transactions, driving business growth and improving the user experience in the competitive online dating industry.
.png)
