Mark Zuckerberg called the metaverse “the next chapter of the internet,” while Satya Nadella said, “it's not only transforming how we see the world but how we participate in it.” Indeed, the metaverse is already far more than some distant concept, but rather a whole new world in the making.
The space where physical and virtual realities are set to merge will launch a new era of digital connectivity, VR experiences, and upgraded eCommerce, and now that it’s closer than ever, it is only natural to wonder what exactly it is going to be like. In this guide, we will shed light on what the metaverse is likely to be from the payment industry’s perspective - read ahead to find out!
Tech visionaries and consumers alike are looking toward a metaverse where one’s virtual avatar can hop from one platform to another and engage in activities such as:
For instance, already now Manchester City is building a virtual stadium in the metaverse so that football fans can watch games and, possibly, purchase digital merchandise just like when gamers buy skins.
What’s more, nearly every activity in the metaverse can potentially be monetized, which makes more and more businesses consider the possibility of entering this virtual world. However, there is one question that makes a lot of merchants hesitate: how to accept payments in the metaverse?
Similar to physical reality, there are multiple options to make payments in the metaverse, namely:
Due to the digital nature of the metaverse, fiat currencies cannot be used to purchase goods in it.
As the metaverse is in a fairly early stage of development, there are still aspects in which it can be improved. When it comes to payments in the virtual world, there are currently three main challenges FinTech companies are trying to tackle:
With that said, there’s no reason for merchants to avoid entering the metaverse market. However, before doing so, it’s critical to be prepared to deal with unfamiliar security risks, disputes, and marketing scenarios.
The metaverse market has the potential to reach $783.3 billion by 2024, compared to $478.7 billion in 2020, representing a CAGR of 13.1%3. This is partially attributed to the high involvement of Gen Z users. For instance, 80% of Zepeto’s users are teenagers, while 54% of people actively playing Roblox are under 13 years old4.
Therefore, if you are interested in exploring this developing market, it’s important to be open to new revenue generation strategies, develop a long-term yet flexible strategy, and stay true to an innovative approach.
1, 4 - Visa - The metaverse as a strategic inflection point
2 - Juniper Research - Digital Wallets ~ Transforming the Way We Pay?
3 - Bloomberg - Metaverse may be $800 billion market, next tech platform
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