Payment Providers, Merchants Prepare to Capitalize on the Metaverse

The metaverse has been a popular lingo in the tech sector for years, but in 2023 it is becoming a reality. With predictions of the market size reaching over $426 billion by 2027, this VentureBeat report tells us that payment providers and merchants are looking to capitalize on the opportunities presented by this new platform.

However, the report states that the following actions need to be taken before this massive change may occur:

• Before enterprises can enter this immersive reality, the metaverse's infrastructure must be established.
• Payment providers and merchants must decide which plug-ins and APIs their businesses will need to support in order to create seamless customer experiences.
• Infrastructure investment is required to maintain smooth user experiences, implement checks and balances, and protect against cyber and fraud risks.

Establishing the Metaverse Infrastructure

Businesses will be able to gain consumer trust by establishing a reliable metaverse infrastructure. The still-unregulated metaverse poses some concerns, and firms must make their metaverse payment platforms as user-friendly and trustworthy as possible to encourage widespread usage. A number of institutions are already taking the lead on these systems.

Just two weeks ago, NFCW reported that a consortium of Japan-based financial services and technology providers is to develop what they call a 'metaverse economic zone' where consumers will be able to create a digital twin or 'auto learning avatar,' access digital experiences and authorize payments to merchants and service providers with a digital authentication credential.

Inclusivity with the Metaverse

The ability of the metaverse to establish new ways of capturing up-and-coming segments across businesses and countries, encouraging inclusion for underbanked consumers, is one of its most useful capabilities.

The metaverse marketplace allows digital assets to be sold, traded, and advertised, providing an alternative payments system for underbanked customers. This generates new revenue streams and users for payment providers to leverage.

DBS, Singapore's leading financial institution, teamed with "The Sandbox" in September 2022 to expand its banking experience into the virtual world.

This virtual world, called "DBS BetterWorld," will be accessible to everyone. DBS also stated that it is exploring methods to link DBS BetterWorld with LiveBetter, a one-stop digital platform the bank plans to introduce soon to encourage more consumers to be more environmentally responsible with their banking.

E-commerce Growth

VentureBeat points out that the metaverse has the potential to provide new revenue streams and payment options for consumers in Latin America and APAC, where e-commerce is experiencing unprecedented growth.

Brazil's instant payment system, PIX, drives real-time, 24/7 payments and is an attractive option for local and international businesses looking to enter the metaverse.

While building a platform in the metaverse is a high-risk, high-reward opportunity, businesses should consider cooperation instead of competition. Many worlds must work together for the metaverse to function.

Bankless Times tells us that the metaverse market has been reported to have a whopping size of over $38.5 billion, as over $500 million worth of real estate has already been purchased in this realm.

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