The $3 Billion Online Dating Industry Continues to Expand
August 9, 2019 | High Risk Merchant Account | PayKings
In recent years, the online dating scene has drastically transformed. The online dating industry has significantly expanded its horizontal reach. The industry has figured out how to captivate and appeal online dating to nearly every type of audience.
The Modern Online Dating Market
According to IBISWorld, the online dating industry has been growing at a rate of 3.5% yearly since 2008. Currently, it counts for $3 billion in gross sales. Market trends show the industry will continue to expand over in the years to come. The online dating marketplace seems quite attractive to investors.
Online dating sites target individual segments of the population. Many websites specialize in matching those with similar religious or cultural beliefs. For example, Christian Mingle is known for matching Christian singles. These specified sites are tailored toward those who know just what they are looking for. Users can go onto a niche site and find hundreds of profiles that match their preferences.
Other online dating sites are developed to match couples with specific interests. Mass audience sites like eHarmony and Match.com succeed by focusing on singles pursuing that special someone.
Recently, the popularity of online dating apps has skyrocketed. The ease and convenience of them makes them a popular choice among millennial-aged users. Dating apps like Tinder and Bumble are tailored towards a younger user that’s not necessarily looking for a serious relationship. With over $100 million downloads to date, Tinder boasts that nearly 10 million of its users are active daily.
The Development of the Online Dating Industry
The online dating industry first came about in 1995 with the debut of Match.com. Match.com was the first site of its kind, narrowing down profiles based on user preferences. Since then, online dating has changed tremendously. Today, algorithms have tremendously improved and can match couples more efficiently than ever before.
The number of people getting online all the time is increasing with quick advances. Modern online dating apps significantly contribute to the growth in the number of online daters. Based on IBISWorld, over 80% of the population will be using a smartphone in 2018.
More than one-third of all 19,000 couples married between 2005-2012 met on an online dating site, based on findings from the National Academy of Sciences study, and according to research conducted by market research company Nielsen, in December 2015, over 1 in 10 American adults used online dating websites. On average, they spent more than 1 hour per day using them. Baby Boomers ranging from 50 to 64 years old add to the competition in the industry to an extraordinary extent, and this is the main reason that their internet use is growing. Also, they were found to be single more now than in the past.
The findings of the National Academy of Sciences study revealed that couples who met online and got married were slightly less likely to get divorced than through any other dating method. According to a report by business research firm IBISWorld, almost 3,900 businesses are operating online dating sites. Approximately 100 companies per year are anticipated to start their online dating service over the upcoming four decades. This surge has created almost 6,000 new jobs and counting. This creation of new jobs has helped stimulate the economy in the United States.
Overall, people genuinely enjoy dating sites. Whether users find success or not, it provides a kind of satisfaction. A study by Pew Research Center reported that 6 in 10 users had a positive experience no matter their outcome. Single men who participate in one or more online dating sites even said that they felt more confident about themselves.
The Online Dating Industry Is High Risk
Online dating companies and adult entertainment sites are categorized as high risk, which means that when it comes to payment processing, they’ll need to apply for an online dating merchant account. The adult category encompasses businesses tailored toward those 18 years of age and up.
Due to the nature of online dating, it makes it hard for businesses to verify age. Typically, a user of an online dating site or app must input his or her birthdate information to verify their age. This is where online dating becomes a high risk industry. Even though there is a virtual age verification step in account creation, it still presents a risk. Online dating apps like Tinder are highly accessible to younger audiences, even those under 18 years old. This presents a high risk situation. Mobile dating apps have to trust that users are honest about their age and follow the age limit policy.
Merchants in the online dating and adult industry don’t need to worry about qualifying as a high risk business. All it means is that any associated business accounts must be established as high risk accounts. So, this makes it known to all parties involved, such as banks, car holders, and merchant account providers, that the business has high risk needs. These needs are based on the nature of the industry and the product being sold in an online market.
Business owners running an adult or online dating site should choose only the most reliable processors in the field. As veterans of the adult and online dating industry, PayKings can provide exceptional payment processing solutions to high risk companies. If you are in need of a safe and protected online dating merchant account, trust PayKings, the leading experts in high risk payment processing.
August 9, 2019 | High Risk Merchant Account | PayKings