Traditional outline fonts (OpenType, TrueType) can only use black and white letterforms. Photofonts are bitmap fonts using full colour palettes and an alpha layer, so they can have transparent backgrounds. Just like other fonts, they are kerned, spaced and Unicode compliant. Photofonts can be used in print and also on web pages.
Use Photofonts in print
It is easy to use Photofonts in the popular publishing applications (Adobe InDesign®, Photoshop® and Illustrator®). Photofont® technology requires special plugins, which are freely available for the Adobe CS applications. This plugin also works with Corel Painter and other applications that can use Photoshop plugins.
Use on the web
You can use full-colour fonts with transparent background and still be recognised as text by search engines. Photofonts can be used online thanks to Flash-based solution, compatible with the sIFR technology,
See the following demonstration how to use the Photofonts in Adobe InDesign.