November 22, 2023 - The Metaverse, is predicted to reach a whopping market worth of EUR 918,23 billion by 2030, but how can we ensure payments in a future virtual world are as convenient as they are in the real world today? Magda Schmid-Debska, Head of Marketing at PXP Financial, examines the potential rise of new payment technologies specifically designed for the Metaverse, and how the right partnership can help businesses take the leap into this brave new world.
On the horizon is a virtual reality which will be as much a part of our lives as surfing the web and posting on social media is now. As the metaverse continues to evolve and its popularity grows, so will the number of businesses operating in this virtual space. One of the most important things these businesses need to consider is how payments will work.
How can you pay in the metaverse?
The metaverse is still at a relatively early stage, and there is still scope for payment methods to emerge that will be designed exclusively for the metaverse. In the meantime, many existing payment methods and cryptocurrencies are being integrated into metaverse platforms and virtual worlds, so businesses need to be ready to accept them all.
We can’t talk about payments within the metaverse without talking about blockchain, the foundation of value storage and transfer in the metaverse. One of the primary early uses for blockchain bitcoin transactions was international value transfers because blockchain transactions had very low fees compared to traditional wire transfers.
The low cost and high security made the blockchain a driver of innovation in the metaverse payment space, and today, cryptocurrency wallet payments are the primary method for metaverse transactions.
Some metaverse projects issue their own blockchain-based tokens or non-fungible tokens (NFTs) for in-world transactions, asset ownership, and trading.
But it’s important to note that traditional credit and debit card payments are also currently accepted in various virtual worlds and metaverse platforms for in-game purchases or virtual goods. Some also allow users to link their PayPal accounts for transactions or use mobile payment like Apple Pay and Google Pay. But in a virtual reality, it makes sense that virtual currencies could replace these payment methods entirely.
The role of artificial intelligence in metaverse payments
Alongside the metaverse, artificial intelligence (AI) is the tech buzzword of the moment and also has the potential to transform the payment experience.
AI is already being used to detect and prevent fraudulent transactions in real time and will become even more sophisticated in identifying patterns and anomalies, reducing false positives, and improving security. Since one recent study found nearly two-thirds (62%) of adults do not understand the purpose of the metaverse and more than three-quarters believe it can cause serious harm to modern society, this may go some way towards increasing trust in metaverse transactions..
AI can also simplify and expedite cross-border transactions by automating compliance, reducing fees, and improving exchange rate management. This will prove vital if the metaverse realises its potential to become a global hub for trade and eCommerce.
Ultimately, AI and payment technology will come together in the metaverse to create unrivalled customer experiences. AI-powered chatbots and virtual assistants are already becoming more common in customer service and support for payment-related inquiries.
But the true value of AI is in its ability to analyse vast amounts of customer data to personalise payment experiences. It means metaverse consumers will enjoy tailored product recommendations, customised loyalty programmes, and payment options to suit individual preferences.
The metaverse is an evolving concept, and the financial infrastructure within it will continue evolving as well, but it promises to open a whole new world of opportunities for businesses in every sector. These businesses need to find a partner that can help deliver real success in a virtual world.
PXP Financial is a complete, omni-channel payment provider that helps businesses accept payments
online and on-premise. We offer an online and POS solution, alternative payments, collection services, card acquiring, and risk management, as well as a variety of value-added services, including checkout pages, reporting, revenue optimisation, tokenisation, dynamic currency conversion, instalments, and recurring payments across multiple channels.
Whatever your business needs today or tomorrow, PXP Financial’s innovative payment platform will support your business growth with all the payment services you will ever need from one source, wherever your business takes you.
About PXP Financial
The end-to-end payment platform: PXP Financial provides a single unified payments platform to accept payments online, on mobile and at the point of sale. Powered by in-house acquiring, a variety of payment methods & financial services, PXP processes over EUR 22.7 billion annually through our unified gateway. Whatever your business needs today or tomorrow, PXP Financial’s innovative payment platform will support your business growth with all the payment services you will ever need from one source, wherever your business takes you. To find out more about PXP Financial family of companies, visit: www.pxpfinancial.com.
Emma Hynes, SkyParlour for PXP Financial
+44 (0)330 043 1315