NFTs, cryptocurrencies, and the metaverse… How will all of these work together?
The concept of the metaverse is set to become a reality for most people in the future. This dream world aims to bring real-life and virtual reality together. And, while there are many opportunities for cryptocurrencies and NFTs in the metaverse, payment methods, as we know them, will also be available in virtual reality.
What is the Metaverse?
Touted as the “next internet” by many, the metaverse promises to revolutionize the way we live our lives, just like the internet did. In a few words, the metaverse is a concept of an online, parallel reality that enables users to create their own world.
In this world, people will be able to create avatars of themselves, interact with others, and engage in activities such as working, shopping, cooking, practicing sports, etc.
Payments in the Metaverse
Just as in the physical world, payments in the metaverse can be made in various ways, but the most common way is via blockchain and digital currencies, which users can utilize to purchase goods and services from merchants within the metaverse.
Cryptocurrencies represent the monetary connection between the physical and virtual worlds. Users wanting to purchase any goods in the metaverse can exchange their local fiat currencies into cryptocurrencies by setting up a crypto wallet and using an exchange like Coinbase or Binance to make the conversion.
However, each metaverse has its own set of accepted digital currencies, so users need to know the payment methods the platform accepts before making any exchanges.
No less important than crypto are NFTs. NFT stands for Non-Fungible Token, which means that each token represents a unique item, with blockchain records that store information about the digital file.
NFTs have become quite popular in the metaverse as a form of payment, as they can be easily transferred between users. Since they use blockchains like crypto, NFTs are a robust method to give owners proof of ownership, a way to transfer value securely, accessibility, and anonymity.
What the Future Holds
The metaverse is still in its early stages but has a promising future. As blockchain technology and the metaverse continue evolving, we can expect to see a proliferation of payment methods available for merchants and buyers. Merchants can take advantage of the growing interest in the metaverse by accepting cryptocurrencies and NFTs, depending on the goods or services offered.
Fiat Money and Traditional Payment Methods in the Metaverse
While cryptocurrencies are the most popular payment method in the metaverse, there is still room for fiat money and traditional payment methods.
Paying with cryptocurrencies is a process that involves a lot of friction – unlike the online payment processes we know and love, such as 1-click payments with credit cards, and, in Brazilians’ case, Pix, the instant payment method that can be carried out by simply scanning a QR code shown on the screen or copying and pasting the Pix code into the mobile app.
Imagine if the metaverse could combine the security and ownership cryptocurrencies provide with a smooth payment process, just like the ones customers are already familiar with. A frictionless payment process can pave the way for new metaverse users, making it more accessible to almost anyone who wants to enter these digital universes.
Case study: DMarket offers PagBrasil’s Boleto Flash®
DMarket is a marketplace to trade virtual items (skins and other in-game products) that can be used in games to build a unique experience. To carry out a purchase within the DMarket platform, users can refill their accounts using cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and more.
But cryptocurrencies aren’t the only payment options available. Users can also pay with traditional payment methods. And this goes for Brazilian users as well: DMarket offers the possibility of paying with local payment methods, including PagBrasil’s exclusive Boleto Flash®.
Paying with Boleto Flash® is quick and easy: customers can copy and paste the boleto barcode into their banking or digital wallet app. The payment confirmation occurs in less than one hour, unlike traditional boletos, which can take up to four business days to be confirmed. Alternatively, they can also pay the boleto with Pix and have the payment confirmed instantly.
What a way to provide a frictionless payment experience in the metaverse!