[Opinion] Metaverse and the Digital Competitiveness of Card Companies

Seo Ji-yong, Professor, Department of Business Administration, Sangmyung University

The metaverse has recently gained attention, especially in the wake of the COVID-19 pandemic. Thanks to the advantages of experiencing virtual worlds, various gatherings and educational activities are shifting from offline to metaverse spaces. Virtual world experiences centered around avatars are actually enhancing user engagement and maximizing satisfaction. Moreover, metaverse technology combined with platforms that have become commerce touchpoints in the contactless era enables customers to make product purchases and payments based on their own experiences.

Recently, domestic card companies are preparing to offer platform payment services through partnerships with well-known metaverse platforms. They are prioritizing the launch of prepaid cards exclusively for teenagers and discount benefits aimed at younger customers. Card companies have also indicated plans to collect data on the consumption patterns of the so-called MZ generation (Millennials + Generation Z) within metaverse platforms.

The competitive edge of financial platforms, which has emphasized convenience in payment and remittance services, is expected to gradually shift toward platforms integrated with metaverse functions. As a result, developing metaverse financial content and financial services specialized in digital experiences is emerging as a new challenge for card companies. The global card company Mastercard has already launched a mobile application (app) utilizing metaverse technology. Furthermore, Mastercard has reached a level of providing differentiated customer experiences through the integration of online and offline channels.

For example, Mastercard has built infrastructure that allows customers to access various product-related information and complete final payments through smart mirrors equipped with Near Field Communication (NFC) technology inside offline clothing stores. Additionally, smart glasses equipped with Augmented Reality (AR?a technology that overlays three-dimensional virtual images onto the real world seen by the user) are also utilized in offline stores. In other words, Mastercard has established an integrated online and offline shopping and payment environment that enables customers to wear smart glasses, browse products, and proceed to final purchase.

The metaverse platform business of domestic card companies is still in its early stages. It is currently at the level of providing payment services through a business agreement with Zepeto, a leader in the metaverse field. However, it is necessary to gradually strengthen this business to enable the construction of independent metaverse platforms by card companies, enhance platform functions, and provide various financial services within the platform.

If customer consumption tendencies are secured as data through the metaverse platform business, this could lead to the expansion of customized financial services for customers. Domestic card companies have already obtained licenses for the MyData business. For this business to be activated, more consumer personal information is required. The metaverse platform is also expected to serve as a bridge to a personal information platform that integrates personal data scattered everywhere.

From the perspective of strengthening security regarding customer data information, it seems desirable for personal information to be stored in consumers’ personal cloud storage. Card companies could also conduct businesses that provide various services related to finance, health, and lifestyle by utilizing this data with customer consent. The diverse business operations using metaverse platforms are likely to become a key keyword in measuring the future digital competitiveness of card companies.

Seo Ji-yong, Professor, Department of Business Administration, Sangmyung University

This content was produced with the assistance of AI translation services.