This is the true value proposition of Metaverse

Find out what the true value proposition of the metaverse is…

In this episode of the Pay it Forward podcast with payabl. we speak to David Birch, fintech author and director of Consult Hyperion. He explores the transformative potential of the metaverse in redesigning financial services and tells us how it could also solve the internet’s identity and fraud problem.

There’s a ton of great insight here on everything from DeFi to B2B trading (bot to bot, that is!). We also hear his thoughts on current anti-fraud efforts and there’s some advice for merchants adapting to the changes in the payments landscape. Enjoy!

Doing business in the metaverse

Birch is a busy man. He starts by telling us about the significant number of things he’s currently focused on. For example, there’s the dynamic relationship between fintech and big tech, which highlights how these companies are playing an increasingly large role in the evolving financial landscape. He also thinks a lot about A2A (account-to-account) payments, which he sees as the backbone of next-generation retail payments.

Unfortunately, we didn’t have time to cover all of this in detail, but we were able to learn about the subject of Birch’s latest book, Money in the Metaverse, co-written with Victoria Richardson. We learn about the transformative potential of the metaverse, not only as a new playground for digital interactions, but also as a revolutionary platform for financial services.

Birch says this new technological frontier offers an opportunity to redefine traditional financial services by addressing the internet’s persistent identity and fraud problems. The cost of defending against online fraud has always been high, but the metaverse offers a new opportunity to develop more sophisticated identification proofs.

The advent of Web3 and the tokenization of assets could create new conditions for companies and innovative mechanisms for exchanging value, making transactions safer and more efficient. This development goes beyond avatars and games, as demonstrated by the entry of Apple, the ever serious competitor, into the metaverse, triggering a more comprehensive reconsideration of its potential.

More than just Fortnite

For merchants, the implications of the metaverse are profound. Birch recounts attending a book launch in the metaverse and how it was a pleasant experience until he had to leave the room to make a traditional payment, highlighting the urgent need for integrated payment systems in virtual spaces.

He also highlights the potential of future identity systems, which he describes as an exciting frontier. These systems will likely support commerce where autonomous bots perform simple tasks, leading to bot-to-bot transactions that have different criteria than human-centered commerce. The richness and variety of metaverse experiences will far surpass current gaming environments like Fortnite, opening up new opportunities for interaction and commerce.

Further examining developments in the digital identity space outside of the metaverse, Birch expressed skepticism about the UK government’s recent passage of the Economic Crime and Corporate Transparency Act. While Birch acknowledges efforts to combat fraud, he argues that the UK’s measures are inadequate. He also notes that there is a lack of sufficient collective action by banks to comprehensively address these issues.

We also get some insight into the challenges and opportunities for small and medium-sized merchants navigating the increasingly complex payments landscape. He advocates scenario planning as a more effective strategy for guiding investments than the traditional five-year plans that many companies rely on. This approach allows companies to be more flexible in adapting to rapid changes in technology and consumer behavior, ensuring they remain competitive in an ever-evolving market.

It is a very insightful interview with a knowledgeable thought leader, so be sure to watch the video to hear the full, Immersive Experience.

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