4 minute read
In a recent interview with Peter High of Technovation, Global Payments CIO, Guido Sacchi, shared his insights on emerging technologies and the future of fintech. This article summarises key points from his interview, covering topics from decentralised finance and crypto to the metaverse.
When we talk about decentralized finance or DeFi, there's a difference between theory and application. In theory, many like the idea of a decentralised model where there is no gatekeeper. In reality, most users have experienced DeFi through a gatekeeper or a somewhat centralised entity. This defeats the purpose of having a decentralised premise when everything needs to flow through one centralised gatekeeper.
The future of crypto
Recent events have not been good for the crypto industry. In the wake of a much-publicised failure, the speculative wave we have seen surrounding crypto is ending. And this is the beginning of a new phase. Hopefully, regulators can apply a common sense approach and not stifle innovation in the wake of these failures.
As we move forward, the crypto industry needs to refocus on the fundamentals. Only then will it finally have an opportunity to prove itself as an application that solves business problems, adds value and provides a good customer experience. And some very promising use cases are on the horizon, like cross-border payments.
The metaverse: an extension of omnichannel commerce
The metaverse is essential in the context of omnichannel commerce. And digital commerce is not only carried out in the metaverse but integrates into an overall user experience that might be hybrid—both physical and digital. In recent years, we have seen the power of these integrated experiences that cross digital and physical channels.
“We have seen the power of integrated experiences that cross digital and physical channels.”
CIO of Global Payments
Commerce in digital worlds will only expand as the metaverse continues to develop. I expect we'll see a universe encompassing not just one but multiple digital worlds. We ask ourselves how we can help actors in these worlds thrive. And that goes from users to creators to businesses—especially small businesses that want to create a presence and do business in a digital world. We are ready to provide infrastructure and capabilities through APIs that can be plugged into digital worlds, much like we do in other channels that are both digital and physical.
In terms of the forms of payment or the forms of commerce that we can expect in the metaverse, blockchain applications are encouraging. The idea of programmable money is very appealing in the metaverse. There may also be a hybrid mechanism where we continue to use traditional currencies or traditional methods of payment in digital format. And it may be complemented by non-fungible tokens (NFTs) or other assets that can track payments, implement smart contracts or provide additional, desirable functionality in digital commerce.
Driving innovation in the digital economy
Recent investments have been made in innovative technologies like the metaverse, aiming to build capabilities and explore new markets. We're at the forefront of these developments in digital commerce, focused on helping businesses thrive in an ever-changing digital economy.
“We are always asking ourselves how do we help businesses, especially small- and medium-sized businesses who are the core of our economy.”
CIO of Global Payments
For more innovations and trends in commerce and payments, check out our 2023 Commerce and Payment Trends Report. And be sure to subscribe to our Payments in Focus newsletter, delivering insights directly to your inbox.
The above article is a summary of insights from Decentralised Finance: Global Payments CIO Guido Sacchi on the Future of FinTech, February 16, 2023.