We previously wrote about banking in the Metaverse, which you can find here https://blog.maprocessing.com/banking-in-the-metaverse. In that article, we discussed how consumers in the Metaverse use banks for similar reasons they use them in the physical world. Additionally, landowners can add ATMs to their properties, just as they do in the real world. Larger financial institutions are also building a presence in the Metaverse.
We're going to discuss the current state of banking in the Metaverse. Compared to the physical banking experience, consumers have access to a more personal and highly visual banking experience in the Metaverse. Consumers can transact in the Metaverse using cryptocurrencies, stablecoins, debit cards, and services like PayPal. Some services are limited in certain regions due to regulatory restrictions.
The payments industry has been at the forefront of technological advances, which was very apparent during the pandemic as millions of users migrated to digital banking and transacting. Therefore, it's important that the industry doesn't hold back expansions of the Metaverse.
Some hurdles include the ability to transact across different Metaverse platforms, such as DeFi and Centralized. This means navigating between proprietary and open-source platforms. Partnering with crypto exchanges may become necessary to ensure digital payments can execute flawlessly. Also, security and privacy will present their own unique set of challenges that will need to be overcome.
Morgan Stanley and Goldman Sachs see the Metaverse growing to over $8 billion in the near future. They want to use VR/AR to enhance the customer banking experience. The Metaverse isn't meant to replace traditional banking, but like its relationship with digital banking, it will supplement traditional banking.
Customers heavily engaged in VR/AR will prefer staying there, which means banking in the Metaverse. Those financial institutions that offer banking services in the Metaverse will put themselves ahead of the competition. It is still very early to figure out what services and experiences banks will offer. But for those financial institutions who haven't established a presence in the Metaverse yet, it is not too soon to get started.
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