Payments help promote the game, Metaverse

To get an idea of ​​how society is changing along with technology, and technology is changing society, you need to consider this:

The pandemic has meant that more than half of the American population goes online to play in search of diversion, platforms, joysticks, virtual reality headsets at hand.

Players are a dedicated group looking for the fun that accompanies the whirlwind of graphics, with communities spanning the globe, connected in real time.

They are also willing to pay for the privilege. And along the way, the meta-verse can flourish fully.

Seventy-one percent of players play games on a weekly basis – and spend an average of $ 61 a year to do so. Multiply the annual consumption by hundreds of millions, and it’s no wonder that even by 2020, gaming was a $ 180 billion industry.

Thus, economies take shape within these virtual ecosystems. However, payment problems arise, which are partly related to the complexity of handling cross-border transactions.

In an interview with Karen Webster of PYMNTS, Scott DamassaeCommerce, tech, comms and gaming sales head of NAM at Citi, TTS, and Aman ChadhaeCommerce, tech, communications and gaming sales head of APAC at Citi, TTS, said that the advanced infrastructure makes it easier for various stakeholders to monetize the video game ecosystem.

Damassa pointed out that the gaming world has come a long way since the days of the Atari 2600 decades ago.

“Before you went to your local store, bought a box of software, it was a physical disk, it was a cartridge, it was anything. And that’s all. The game is over,” he said. Pay $ 40, get the game cartridge, in other words.

Fast-forward to the 21st century, and the subscription model prevails, with additions and skins and all sorts of ways to stay engaged with consumers. There are several points of contact between players, platforms and even advertisers to engage and trade. (There is even money to be made where people see other people play games.)

Behind the scenes, of course, are revenues, royalties and fees that accrue to developers, publishers and all kinds of content creators.

“Everyone wants to pay fast,” Damassa said, “and you can not just wait until the end of the month. In some cases, you have to pay [creators] instantly to continue providing their services.

This sense of urgency and desire for transparent cash flows, Chadha said, extends far beyond games to all sorts of other platforms, including the concert economy. For financial institutions (FIs) and companies, bundled payments are no longer sufficient to meet the requirements of permanent trading. For the payers themselves, it is possible to charge a fee for speed and convenience.

Damassa and Chadha said that platforms are created across platforms across market economies and peer-to-peer networks that allow the exchange of goods and services.

Improved connection

Improved connectivity, Chadha said, “opens up a lot of possibilities.”

Developers in particular have a preference for alternative payment channels, including digital wallets – many of these creators may not have bank accounts. They featured Citis WorldLink payment services, which allow users to issue payments in more than 135 currencies without having to have local currency accounts.

The confluence of gaming, payment infrastructure and virtual reality (VR) cements Metaverse’s tracks, the two Citi executives said, bringing people into VR concert environments and other events.

The infrastructure to facilitate 3D shopping experiences and interactive digital storefronts is still under construction. For now at least, Chadha and Damassa said that payments must be modular to work with different models as these models evolve.

Going forward, with payments integrated as part of the mix, Damassa highlighted the benefits that the 3D meta-verse will have over 2D offerings. The meta-verse, he said, can bring trade to any setting (including, say, the beach).

As a parallel, he offered the fact that in the early days of cinema, film cameras were stuck “inside” studios and scenery. Soon, of course, cameras and film technology became skilled enough to take everywhere.

As Damassa told Webster of Metaverse, “We are waiting for our shooting moment.”

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April study PYMNTS 1

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