Visa And Mastercard Need Solid Layer-2 Infrastructure To Process Payments In The Metaverse

The Metaverse might hold the key to Visa and Mastercard's future. Even if they might not employ Ethereum for a wider deployment, both industry titans in payment processing have made strides in the virtual realm. Other scalable networks also offer workable chances to handle payments for the Metaverse.

Visa & Mastercard Tap The Metaverse

Everyone is interested in Web3 and the future of that technology. Some people envision a vast virtual reality that dissolves the distinction between the digital and physical worlds. Others view it more as a hangout area for entertainment. Payment processing will be necessary notwithstanding the vision. Additionally, not all payments must be made in cryptocurrencies.

Visa and Mastercard agree that the Metaverse has great promise. Even if the combined payment volumes of these companies exceed $17 trillion, there is always space for expansion. The next important frontier for both providers is investigating possibilities in the virtual world.

With its Pride Plaza teleporter, Mastercard has already made progress in the Metaverse. Through a collaboration with Decentral Games, it is established in Decentraland. Such a marketing alliance raises awareness of both the brand's involvement and Decentral Games' approach to Metaverse expansion. Additionally, the $ICE tokens are bought back and removed from circulation using all advertising proceeds from this transaction.

Visa has chosen a somewhat different path. Through its relationship with Crypto.com, one of the most well-known brands in the cryptocurrency industry, the organization is cautiously investigating cryptocurrencies. It is crucial to make it simpler for customers to utilize and spend cryptocurrency. More importantly, these cards bring value to the cryptocurrency business while operating through the current payment rails.

Which Network To Build On？

Visa and Mastercard will need to use the best network if they wish to investigate other Metaverse potential. Ethereum would be a sensible option. The largest network for Web3 development is there. It also has problems with recurring gas charge concerns, a restricted ability to scale, and inadequate throughput for such a load of transactions. Over time, developers can fix those problems, but that doesn't meet the needs of the present.

Additionally, the present apps created using this technology might not be adequate. As a service provider with an API that can be integrated into any application, Moonpay is interesting. Customers can purchase cryptocurrency using credit or debit cards using the API. Visa and Mastercard benefit from such a network, but they are also free to create a native solution. Eliminating the middleman will increase business profits and offer customers a more straightforward answer.

Ethereum won't be the preferred network if they want to exercise that option. High transaction fees must be avoided, as must outrageous fees amid network congestion. It seems advantageous to build upon a Layer-2 scaling solution. With L2s like Boba, it would still grant access to the Ethereum environment without the disadvantages outlined above.

Being a multi-chain Layer-2 that supports not only Ethereum but also Avalanche and Moonbeam, Boba is intriguing. Anyone who is enthusiastic about investigating multichain dApps needs a foundational technology stack. Additionally, all network costs may be paid using the native $BOBA token or the Layer-1 currency to which one wishes to get exposure.

Conclusion

In the Metaverse, Visa and Mastercard have a lot of opportunities. They can support the onboarding of millions of users while handling billions of transactions.

The main issue is whether they decide to construct their own decentralized infrastructure or use a third-party service. However, only if the teams construct on an efficient network does the latter strategy have significant advantages.