Meta, the platform based on the Metaverse, has announced the launch of a new digital wallet to support value interaction in the Metaverse.
Facebook Pay Is Rebranded as Meta Pay
Meta is trying to solve the problem of transaction and value interactions in the Metaverse. The new digital wallet will support users’ economy in the next iteration of Meta’s Metaverse. The wallet, dubbed Meta Pay, will be an evolution of what is now known as Facebook Pay, still supporting the range of payments it currently handles but will be expanded as a universal way to pay for goods and services using digital identities in the Metaverse.
Meta CEO (formerly Facebook) Mark Zuckerberg announced the project a few days ago on his Facebook page. The founder didn’t go into much detail, other than to say that it would be platform neutral and incorporate some of the features associated with today’s NFTs. The digital wallet will allow users to easily buy digital goods and keep track of their virtual assets.
According to Mark Zuckerberg, Meta Pay will be a solution to two Metaverse problems: accessibility to digital goods and proof of ownership. In this regard, he said:
“In the future, there will be all sorts of digital items you might want to create or buy — digital clothing, art, videos, music, experiences, virtual events, and more. Proof of ownership will be important, especially if you want to take some of these items with you across different services.”
Standardization in the Metaverse
Zuckerberg said that ideally, anything purchased in one part of the Metaverse should be available on another platform, with the same functions and features. This is one of the goals Meta seeks to achieve with Meta Pay: a kind of Web3 identity that binds purchases of digital items to a singular digital identity.
In addition, Zuckerberg argues that a universal payment method across the whole Metaverse will be an opportunity for content creators, as more consumers will be available to buy their content. However, this can only be achieved with a certain degree of standardization.
“You should be able to sign into any Metaverse experience and everything you’ve bought should be right there,” he added. “The more places you can easily use your digital goods, the more you’ll value them, which creates a bigger market for creators.”
Current Facebook Pay users will be able to start using Meta Pay without having to take any action as their account details, payment method and settings will remain the same. Meta added that this change is rolling out in the US first and will roll out globally over time.
The company recently partnered with Microsoft and other companies such as Epic Games to collaborate on open standards for the Metaverse. Called the Metaverse Standards Forum, the group will work to create open, interoperable standards for augmented and virtual reality, geospatial, and 3D technology.
The main focus of the group is to discuss where a lack of interoperability is holding back the emerging Metaverse industry. It’s no surprise that these tech giants want to collaborate on fundamentally interconnected technology, and the business potential itself is high, with a projected value of over $600 billion by 2026.
The Metaverse Potential
As its user count and market share continue to decline, Facebook has turned to the metaverse to stay relevant, even renaming the company Meta in 2021. Facebook changed its name to Meta in October to further capture the company’s core ambition, which is to build the metaverse.
Since then, Meta has started renaming its products to match the company’s new branding. For example, Oculus Quest is now Meta Quest and Facebook Portal is now Meta Portal. It makes sense that Meta is changing its payment experience as well, especially as it prepares for the metaverse.
In a recent interview with CNBC’s Jim Kramer, Zuckerberg said he expects the Metaverse to have over a billion users by the second half of the decade, each spending hundreds of dollars on digital assets.
“We hope to basically get to around a billion people in the Metaverse doing hundreds of dollars of commerce, each buying digital goods, digital content, different things to express themselves,” said Zuckerberg.
“Whether that’s clothing for their avatar or different digital goods for their virtual home or things to decorate their virtual conference room, utilities to be able to be more productive in virtual and augmented reality and across the Metaverse overall.”
It has become possible to shop for groceries, check your bank account, and buy a new outfit, all without leaving your home. Malls – once full of activity – are declining fast.
But the thing is, not all sectors of the economy have managed to transition smoothly into the digital world.
Big purchases, like car sales and homes, are still mostly an offline affairs. Streaming has not replaced live events. You don’t get the same feelings online.
And, as the pandemic has shown, education still works best offline. Zoom classrooms do not replace face-to-face learning.
There are huge parts of the economy that just aren’t easily replicable online. Thus, Meta seeks to change our current understanding of the Internet, with virtual worlds replacing today’s applications and web browsers. In doing so, it hopes to convert the last recalcitrants.
Will Meta Bet on Metaverse Pay Off?
Meta has bet billions, including its name, on the Metaverse. It has committed huge sums of money and development resources to build the underlying infrastructure. And if its bet is successful, the company will benefit massively.
The company won’t just own the underlying platform, or at least one of the dominant platforms. It will also own the financial plumbing. Its influence on the online economy will increase and Facebook will become the center of the online economy. But its success is not guaranteed.
Featured Image: DepositPhotos © Mactrunk
