Web 3.0 is changing the way we pay online and that means that FinTech industries and banks are going to be acting soon. Payments in the Metaverse will likely be a hybrid of both cryptocurrencies and fiat currencies, but that all depends on an open of closed platform architecture.
We see a market for high risk merchant account providers to lend some peace of mind and safety here. Because of course, the merchant account providers are tasked with sharing some of the risk with banks.
So what currency will be used in the Metaverse and what will Metaverse payment look like? We can only make well-educated guesses but this is where to think a banking boom is coming. Don’t get left behind!
Ok, so before we get into Metaverse payments we have to be clear on where we are. We have to start with a definition for those who are still a little iffy on the specifics. We’ll do our best to keep it as broad as possible.
The metaverse is a virtual world that is the embodiment of the internet that is the real world made digital. People create avatars that can navigate through the virtual world to buy virtual houses, meet up with friends in virtual dinners, or catch a stand-up comedy show or even a concert.
This is all made possible thanks to faster internet speeds and the use of blockchain technology which harnesses virtual and augmented reality as well as video connection.
Early adopters are using the platform to connect with others but there is already an opportunity for commerce.
The Metaverse has moved through several ideas and interactions. The latest and greatest move was when Facebook announced it was rebranding to Meta. It was the first time a digital goliath has made a positive move towards embracing Web 3.0 ideals since Elon Musk briefly announced that Tesla would be accepting BitCoin to purchase their vehicles.
But the Metaverse has been in development for a long term, maybe even before it had the official title of Metaverse. The first real iterations of this concept came from platforms like Central Land and The Sandbox.
The potential is there. These new digital financial e-cosystems will aim to support activities and Metaverse transactions.
And it’s not just social media giants like Facebook that see the potential.
The Metaverse is still in the earliest stages of adoption, but JP Morgan acted early and has already opened up a virtual branch. Although this is just a basic storefront where people can visit but not conduct actual Metaverse transactions yet.
HSBC has also announced they have purchased a virtual plot of land in the Metaverse. And South Korean banks are also exploring options but again this is still in the very early stages of development and adoption.
This is part of the first wave of land buying in the Metaverse that some people have taken to but it is all still very early and the moves are basic for now.
The Metaverse seeks to add a human touch to the digital world, something that has been lacking from the start. Instead of looking at PC and mobile screens, the goal of the Metaverse is to allow users to become immersed in the world and find that they can access services and entertainment here while connecting with people digitally.
The evolution of transactions in the Metaverse will depend entirely on the adoption of cryptocurrency or fiat currencies. That decision will have a huge impact on the future of crypto. Either currency will be used primarily by users or, more likely, we will see a hybrid of the two currencies.
A closed Metaverse will be a better place for Fiat currencies where money can be transferred into a digital wallet for later use. A close Metaverse will limit the places that people can go and the transactions they can make.
However, an open metaverse will make it difficult for people to use a Fiat Currency because people from all over the world may not be in a good position to use traditional currencies. Instead, they will rely on cryptocurrencies because of their ease of transferability across borders.
Metaverse transaction are still almost nonexistent.
However, some video games are already exploring the idea that in-game purchases and NFTs in the metaverse. But there is no definite path here yet. Coinbases upcoming NFT marketplace is a great example of this and will include a personalized feed of the user’s likes and interests… much like existing social networks.
Facebook and even Twitter have explored Web 3.0 concept by trying to integrate their platforms with the existing architecture like blockchain and digital wallets. But other big FinTech companies are also exploring the idea of creating their own metaverses.
So how safe will Metaverse payments be? Online payment processing has drastically increased in security but digital thieves remain close behind in development.
The truth is that the Metaverse is so new and so undeveloped that we could possibly say for certain that it’s safe now. We can theorize that as more institutions adopt the technology, safety standards will have to be met, and so the idea of a safer Metaverse in the future is well within reason.
Web 3.0 seeks to keep people constantly connected online through video games, events, and meetups and will eventually include taking your life, and transactions online. Work, place, shop, and hang out with friends, all while never leaving your home.