Trust Is Key To Unlocking Opportunity in the Metaverse and Beyond
The incredible growth of ecommerce has had a profound impact on the way we live and work. This has ushered in a new era of choice and convenience that we couldn’t have imagined a few decades ago. Our virtual high street stretches around the world, operates 24 hours a day, 365 days a year, and has infinite possibilities for growth, with new retailers and ways to purchase goods and services coming online every day—including those in the metaverse.
Just like in the physical world, good customer service in the digital realm creates a significant competitive advantage for retailers. Online merchants that provide seamless experiences will benefit in two ways: increased consumer loyalty and increased revenue. Gartner predicts that organizations that frictionlessly move customers through their online shopping journeys will see at least a 20% uplift in total revenue by 2025.
Trust as a competitive advantage
When we shop at a local brick-and-mortar store, trust between the customer and the retailer can be easily established. Imagine your neighborhood market, where you go every week and do not need to reintroduce yourself; this familiarity creates trust. While the local high street has a steady stream of dependable foot traffic, the digital realm has grown dramatically, propelled by the pandemic.
However, not only is it more difficult to prove our identities online, but e-commerce is also increasingly complex and critical for retailers as more of their customers—around the world—conduct their day-to-day lives online. In the digital realm, the ability to prove that you are who you say you are the foundation of trust. Online retailers keen to attract new customers and foster loyalty need to provide simple ways to build that trust. We all want secure experiences, but we do not want to compromise convenience or speed.
Online merchants that strike this balance seamlessly will build trust with consumers and have a competitive advantage in an increasingly crowded digital high street. Mastercard empowers businesses to build trust with consumers, through our own extensive innovation, and through acquisition and partnerships.
Technology fuels transparent transactions
Embracing new technologies that draw on physical biometrics and behavioral traits can be key to providing the experience consumers want and are accustomed to. Just think about how often you may use biometrics yourself—to unlock your phone, make a payment, open an app, or enter a building. It’s unsurprising that three-quarters of us have a positive attitude toward biometric technology.
While Mastercard’s new technologies include biometric checkout that allows consumers to pay simply by smiling or waving in-store, in the e-commerce realm, we have also developed tools that can help authenticate a genuine consumer by how they hold their phone or the speed of their typing or swiping.
Mastercard has created and continues to refine, a multi-layered approach to security, with many technologies working effectively behind the scenes, such as establishing identity through enhanced behavioral biometrics. When combined with other technologies, such as AI and machine learning, we can tell if someone is who they say they are.
Building a secure future
Looking ahead, unlocking the potential of retail in the metaverse depends on how seamless we can make the online shopping experience—and how trusted it is. Whether consumers are making in-app purchases, using avatars to browse and try on clothing or simply shopping for groceries, establishing trust—proving we are who we say we are—will be key to unlocking the future of the metaverse. We must secure today’s digital economy to prepare us for the metaverse and beyond.
By Ajay Bhalla, President, Cyber & Intelligence, Mastercard
