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Education

Metaverse – the next frontier

for payments providers?

By Sascha Münger accessed via headset or experiencing digital content via
Worldline Merchant Services visiting businesses using smartphones or digital glasses.

he metaverse has been front and center of dis- The metaverse isn't a singular digital space but several
cussions since 2021 when Facebook surprised that are being created by companies to offer more realistic
the world by rebranding to Meta—in direct ref- and immersive digital experiences. From a business
T erence to metaverse—and began promoting this perspective, the technology has a range of potential
new "digital reality." During media interviews Meta CEO functionalities designed to facilitate better levels of
Mark Zuckerberg confirmed the business would shift collaboration and productivity.
focus from a mere social media platform to a "metaverse Ecommerce, the metaverse and 'web 3.0'
company" over the course of the next five years.
The development of the metaverse is often associated with
Just months later, other brands announced they were "web 3.0," and both are expected to be critical to the future
working on their own metaverse, and slowly, more of ecommerce. At present, we are at the stage known as
organizations became strong advocates for the topic. Fast "web 2.0" where the internet is the primary entry point
forward one year, and many companies are looking at for those looking to access information and services,
how they can be a part of this new universe and, more communicate and socialize, sell goods, and experience
importantly, generate revenue from it. entertainment.

And what better place to start the conversation than at the Meanwhile, the metaverse is predicted to replicate the
very heart of revenue generation: payments. Essentially, value proposition of the internet itself. The metaverse
payments providers are enablers for the monetization of adds a new, three-dimensional, immersive layer that
this new metaverse and, with that in mind, an abundance provides users with a more authentic, seamless experience,
of opportunities and challenges require consideration. enhanced by the advantages of blockchain technology.
The metaverse – how it works, what it means Payments in the metaverse
The metaverse refers to a virtual world in which physical Paying for digital assets will hold the ultimate key to
cash has no place. Living and doing business in this creating a seamless user experience in the metaverse. And
environment requires a proper virtual system to facilitate to ensure effective ecommerce and a fully functioning
seamless, effective transactions, and digital payments are metaverse, each digital environment must create its own
the primary vehicles for doing so. digital economy of sorts with robust payment methods.

Combining the words "meta" and "universe," "metaverse"the Just as in the physical world, payments in the metaverse
term is a portmanteau used primarily to denote an can be made in various ways, but the most common is
anticipated future iteration of the internet. It refers to both through blockchain or digital currencies, which can be
current and future integrated digital platforms focused on used to purchase merchant goods and services. Thus,
virtual and augmented reality. It is widely considered to payment providers must look to proactively explore how
be the internet's next frontier and a significant business to build in metaverse payment products and services, to
and financial opportunity for businesses across all sectors. create the ultimate virtual payments experience complete
with new merchant sales channels and virtual showrooms.
If we are to understand how it works, based on the vision
set out by social media and technology companies, The role of cryptocurrencies
devices such as virtual reality headsets, digital glasses, and NFTs
smartphones and other devices allow users access
to 3-D virtual or augmented reality worlds. In these Cryptocurrencies have an important role to play in
environments, users here work, connect with friends, the development of the metaverse as they represent
conduct business and access learning opportunities – all the monetary connection between the physical and
in an environment mediated by technology in original virtual worlds. Users looking to purchase goods in
and immersive ways. the metaverse can exchange their local fiat currencies
into cryptocurrencies by setting up a crypto wallet and
But the metaverse is not just one type of experience. It using an exchange like Coinbase or Binance to make the
refers to a continuum of immersive digital experiences – conversion.
from participating in a virtual reality multiplayer game

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