Does Ecommerce Need a New Payment System?

Ecommerce transactions between a merchant and a consumer include several intermediaries. The process is akin to a toll booth on a turnpike. As the shopper speeds along his buying journey, various processors and banks interrupt the trip and snip a percent or two from the purchase amount. Merchants earn less.

While no one is predicting the end of ecommerce payments as we know them, digital commerce, in general, is changing.

Behaviors that existed in the tangible, physical world are now making their way into digital realms. These changes manifest as person-to-person commerce, the creator economy, digital bartering, and the so-called metaverse.

Let’s consider this last example. Metaverse

Although the folks at Meta — Facebook, Instagram, WhatsApp — are, perhaps, trying to own the word, “metaverse” was first coined by Neal Stephenson in his science fiction novel, “Snow Crash.” It describes a virtual reality environment where users can interact with each other and computer-generated objects.

The metaverse has the potential to augment many human endeavors, both real and virtual.

What will ecommerce payments look like in the metaverse? No one knows for sure, but there are some clues.

In “Snow Crash,” the protagonist visits a virtual pizzeria, where he can order a pizza and deliver it to his home in the real world. He uses “creds,” a digital currency, to pay for it.Although this may seem far-fetched, it is not that different from ordering a pizza through an app such as Seamless, DoorDash, Uber Eats, or Grubhub. Both cases use a digital interface to order and pay for a physical product.It is not hard to imagine a future where we use cryptocurrencies such as Bitcoin, Ethereum, or similar for ecommerce, despite their current volatility . Value in a System Evvio , an ecommerce technology company, has recently been offering an alternative payment option called Fluid Commerce. […]

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