Discover the True Value Proposition of the Metaverse

Find out what the real value proposition for 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. Exploring the transformative potential of the metaverse in reshaping financial services, he lets us know how it might also solve the internet’s identity and fraud problem.

There’s loads of great insights here on everything from DeFi to B2B (that’s bot-to-bot!) commerce. We also hear his opinions on current efforts to tackle fraud and there’s some advice for merchants adapting to changes in the payments landscape. Enjoy!

Doing business in the metaverse

Birch is a busy man. He begins by telling us the not insignificant number of things he’s currently focusing on. There’s the dynamic relationship between Fintech and Big Tech, illuminating how these companies are playing an increasing role in the evolving financial landscape. He’s also thinking a lot about A2A (account-to-account) payments, something he sees as the backbone for next-generation retail payments.

Sadly we didn’t have time to cover all of this in depth but we did get to hear about the topic of Birch’s latest book, “Money in the Metaverse“, written in conjunction with Victoria Richardson. We find out about the transformative potential of the metaverse, not just as a new playground for digital interactions but as a revolutionary platform for financial services.

According to Birch, this new technological frontier presents 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 fresh slate to build more sophisticated identification credentials.

The advent of Web3 and the tokenization of assets could establish new pre-conditions for business and innovative mechanisms for exchanging value, making transactions more secure and efficient. This evolution goes beyond avatars and games, as evidenced by Apple, ever the serious contender, entering the metaverse themselves, prompting a broader reconsideration of its potential.

More than just Fortnite

For merchants, the implications of the metaverse are profound. Birch recounts attending a book launch within the metaverse, which was an enjoyable experience until the moment he had to exit to make a traditional payment. This highlights the pressing need for integrated payment systems within virtual spaces.

He also emphasizes the potential of future identity systems, which he describes as an exciting frontier. These systems will likely support commerce involving autonomous bots handling menial tasks, leading to bot-to-bot transactions that will prioritize different criteria than human-centric commerce. The richness and diversity of metaverse experiences will far surpass current gaming environments like Fortnite, opening up new possibilities for interaction and commerce.

Further exploring developments in digital identity away from the metaverse, Birch expressed skepticism about the UK Government’s recent enactment of the Economic Crime and Corporate Transparency Act. While acknowledging the efforts to combat fraud, Birch argues that the UK’s actions are insufficient. He also notes the absence of sufficient collective action among banks to address these issues comprehensively.

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

It’s a thoroughly insightful interview with a knowledgeable thought leader, so be sure to watch the video to get the full, immersive experience.

And check out more of the Pay it Forward podcast on our website.