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Mastercard vs. Valve: Dispute Over Game Platform Pressure

August 3, 2025
Mastercard vs. Valve: Dispute Over Game Platform Pressure

Response to Marketplace Crackdown on Adult Games

Following a recent and significant restriction of adult-themed games on various marketplaces, attributed to concerns from payment processors, Mastercard issued a statement on Friday clarifying its position.

The company explicitly stated, “Mastercard has not undertaken any evaluation of games, nor has it mandated any limitations on activities hosted on game creator websites or platforms, in contrast to what has been reported in the media and alleged.”

However, Mastercard reinforced its requirement for merchants to implement suitable safeguards. These controls must prevent the use of Mastercard cards for illicit transactions, specifically including the purchase of illegal adult material.

Advocacy Group's Concerns

This situation arose after Collective Shout, an advocacy organization, sent an open letter to leading financial companies. The letter, addressed to executives at PayPal, Mastercard, Visa, and others, voiced criticism regarding the availability of games like “No Mercy.”

The group highlighted the disturbing content within these games, which includes depictions of rape, incest, and the sexual abuse of children.

Marketplace Reactions

Subsequent to the letter, Steam announced a policy change. The platform would now prohibit games that contravene the regulations of its payment processors, card networks, and associated banking institutions.

Itch.io also responded by removing adult content from its browsing and search functionalities. This action was taken while the platform initiated a comprehensive review of its content policies.

Conflicting Statements

Mastercard’s statement appeared to challenge the idea that payment companies were directly responsible for pressuring the game marketplaces. However, Steam’s parent company, Valve, released its own statement to PC Gamer and other gaming news outlets.

Valve clarified that “Mastercard did not engage in direct communication with Valve, despite our attempts to establish contact. Instead, Mastercard communicated with payment processors and the banks that acquire transactions for them.”

The communication from the payment processors to Valve indicated a rejection of Steam’s existing policy, which, since 2018, has aimed to distribute games that are legally permissible.

Payment Processor Concerns

The payment processors cited “risk to the Mastercard brand” as a key concern. They referenced a Mastercard rule prohibiting “illegal or brand-damaging transactions” as justification for their stance.

Itch.io's Current Position

Itch.io has indicated it is currently re-indexing free games containing adult content. Simultaneously, the platform is engaged in negotiations with payment processors, including Stripe.

Stripe, for its part, has stated its inability to support sexually explicit content due to restrictions imposed by its own banking partners.

Key Takeaways

  • Mastercard denies directly restricting game content, but requires merchants to prevent illegal purchases.
  • Valve claims payment processors, not Mastercard directly, pressured Steam to remove games.
  • Itch.io is navigating the situation by re-indexing free content and negotiating with payment providers.
  • The controversy highlights the complex relationship between game marketplaces, payment processors, and content regulation.
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