Valve says that one of PayPal's acquiring banks has pulled support for Steam purchases due to content concerns, impacting consumers who shop on the platform using certain currencies.
The company offered the explanation to Rock Paper Shotgun (RPS) and said the withdrawal of support "is regarding content on Steam, related to what we’ve previously commented on surrounding Mastercard".
Valve maintains that Mastercard used intermediaries (like payment processors and their intermediary banks) to force it to restrict the sale of NSFW and adult content. Mastercard denied this in a brief statement in early August.
A Valve spokesperson confirmed the connection between that ongoing controversy and today's news. In this case, one of PayPal’s acquiring banks decided to stop processing any Steam transactions, which cut off PayPal on Steam for a number of currencies," they told RPS.
On its website PayPal defines an acquiring bank (or merchant acquirer) as the bank that "receives the payment authorization and collects the customer’s funds on behalf of the business."
"It can be easy to confuse the merchant acquirer vs. payment processor. Basically, the merchant acquirer is the bank that accepts the payment from the customer. But the payment processor does the heavy lifting of actually authorizing and completing the transaction," adds that explainer. "Some platforms, like PayPal, can act as both processor and acquirer, completing your business transactions and securely storing your money in one place."
Providing more context on the Steam Support page, Valve said the sudden termination will affect Steam purchases using PayPal in currencies other than EUR, CAD, GBP, JPY, AUD and USD.
In an FAQ, Valve offered additional details:
"We hope to offer PayPal as an option for these currencies in the future but the timeline is uncertain," Valve wrote. "We are also evaluating adding additional payment methods on Steam for the customers affected by this. In the meantime, please use one of our other current payment methods during checkout. If you can't use any of the available options, you can consider using a Steam Wallet code to add funds to your account."
The IGDA warned against "creative suppression" on game platforms
After the waves of controversy resulted in games being pulled or delisted from Steam and indie platform Itch.io, the IGDA put out a statement condemning the practice, calling it a form of "creative suppression" that harms certain creators unfairly.
"Games that feature consensual adult content, including queer, kink-positive, or romantic narratives, are easily targeted under vague or overly cautious enforcement, often forcing developers into silence or self-censorship because platforms fear perceived risks associated with hosting legal adult content," said the IGDA.
It also noted that safeguards are already in place on some platforms and had policy recommendations in hand for the future:
"We urge platforms, payment processors, and industry leaders to engage in dialogue with developers and advocacy organizations. We welcome collaboration and transparency. This issue is not just about adult content. It is about developer rights, artistic freedom, and the sustainability of diverse creative work in games," continued the organization.
