Technology
What’s next for payments in AR, VR, and the Metaverse
Source: Finance Derivative
With the last few months seeing some rapid developments in new consumer tech, Rob Gatto, Chief Revenue Officer at Paysafe discusses the current state of consumer payments in AR and VR and how we expect buying in the metaverse to unfold.
Consumers have become increasingly accustomed to Augmented Reality (AR) and Virtual Reality (VR) technology, mainly thanks to their adoption in retail and other experiential settings. With excitement building around Apple’s Vision Pro headset we only expect this tech to grow increasingly popular.
However, despite the growing prominence of AR and VR, our Lost in Transaction 2023 research report – a survey among 14,500 consumers in Europe, North America and Latin America – found that there’s some way to go before consumers fully embrace paying for products while in an augmented or virtual world.
So, why is this, how can payments in AR and VR benefit businesses, and what can we expect the next great tech trend – the Metaverse – to bring for customers’ buying experiences? These are developments we have been tracking.
How AR and VR are being used today
The first strong use case of AR and VR in retail was in 2014 by the clothing chain Topshop and home improvement company Lowe’s. Fast forward to today and countless other merchants are embracing this technology to enhance the shopping experience, from Ikea, to Amazon and ASOS. In these settings, but using AR and VR, customers can ‘try’ products or ‘see’ them before they buy.
It’s not surprising that the success of AR and VR in bringing new experiences to customers has seen the technology proliferate through other industries, such as travel, online gaming, iGaming, sports, cinema, and other entertainment products and services.
Due to this interest, payments are being integrated into AR and VR to ensure consumers can complete their purchases without disrupting the experience. But according to our research, customers are yet to respond, with only 3% of respondents having ever used AR or VR to purchase goods.
However, there are signs of progress. With the growing demand for AR and VR-driven experiences, appetite for AR and VR payments is growing too.
Low consumer security concerns surrounding AR and VR payments
When it comes to any new payment technology, security often poses the greatest barrier to consumer adoption, and understandably so – financial data is arguably the most sensitive of consumer data. It’s therefore no surprise that customers want full trust in a technology before sharing this information.
However, while VR and AR payments are still relatively new additions to consumers’ lives, our research found that security concerns around them are not presenting a significant barrier to adoption.
While older respondents, and especially over 65s, are more likely to say AR and VR doesn’t seem safe than younger respondents, concern about the technology’s security is low in general. Just 12% of respondents across all age groups say they wouldn’t use AR or VR to purchase goods because they don’t seem safe.
What is exciting to see is that there seems to be growing appetite for payments in AR and VR. In our report, we asked if respondents see themselves using VR and AR to purchase goods in the next two years. Over a quarter (27%) of respondents see themselves using VR and slightly more than that (28%) see themselves using AR if these technologies become more widely available and they learn more about them.
Taking this into account, it’s clear that expanding the availability of these technologies is essential to greater payments usage.
Commerce in the Metaverse
While AR and VR are both relatively new technologies, the Metaverse is even newer. This single, shared, 3D version of the internet is still technically hypothetical, even if some online videogaming universes have been described as forming part of it.
However, this nascency doesn’t seem to have impacted consumers’ views on the security of their payments.
While the number of consumers who say they wouldn’t purchase goods in the Metaverse because it doesn’t seem safe is higher (17%) than those who wouldn’t make a purchase using AR or VR, the number is still relatively low. Much like AR and VR, this tells us that security is yet to become a barrier to adoption for payments in the Metaverse.
Of course, this is something that could change when the Metaverse is officially released, but the current appetite for making payments on the platform is encouraging. Just over a quarter (26%) of respondents see themselves making a purchase in the Metaverse in the next two years if the technology becomes more widely available and they learn more about it.
With the growing adoption of AR, VR and the Metaverse, there is little doubt that payments will play a significant part in how businesses evolve their customer offerings and deliver more seamless experiences of the latest and greatest tech.
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Technology
The UK’s Cybersecurity Landscape: Key Trends and Challenges for 2025
By Christina Kemper, Vice President of International at Armis
Almost every single organisation, large or small, is acutely aware of the need to implement robust security measures. However, this is easier said than done. As the threat landscape continues to evolve, only heightened by tools such as AI, it can be difficult to stay ahead and ensure appropriate security measures are in place. Furthermore, there are a lot of security tools out there, and many organisations have tried to implement security measures and are now overwhelmed with an influx of information trying to figure out how best to manage it.
However, though it may not be the easiest task, it’s certainly one worth doing right. So, as we look ahead to 2025, what are the main trends that organisations need to be aware of and how can they use this knowledge to stay protected?
- Nation-state threats will worsen
The global geopolitical landscape is increasingly influencing the cyber threat environment. Nation-state actors, motivated by political or strategic goals, are launching more sophisticated cyberattacks which target critical infrastructure, government agencies and private enterprises. These attacks are often highly targeted and can have devastating consequences that disrupt society and economies.
In 2025, we can expect an uptick in cyberattacks from nation-state actors as global tensions rise. The UK, like many other countries, has already experienced the consequences of these kinds of attacks – and new technologies such as AI and quantum computing are only making things more complex. Just last month, UK minister, Pat McFadden, warned that Russia and other adversaries of the UK are attempting to use AI to enhance cyber-attacks against the nation’s infrastructure. Worryingly, however, over half (52%) of IT leaders in the UK do not believe the government can protect its citizens and organisations from cyberwarfare.
As we move into the new year, we will increasingly see nation-state attacks move away from the direct theft of sensitive information and focus more on destabilising economies, disrupting services, or causing widespread panic. When it comes to threats such as these, catching the early warning signs is vital. Organisations need to ensure they are using proactive measures to detect and prevent threats before they materialise.
- Supply chain attacks will continue to cause major disruption
For the last few years, it has become increasingly evident how vulnerable organisations are to supply chain attacks. Attacks on third-party vendors and partners have been responsible for some of the highest-profile breaches this year, such as the Synnovis and the Network Rail attacks. Additionally, the estimated global cost of supply chain attacks is expected to reach $60 billion in 2025.
As such, supply chain security is now a priority for many businesses, particularly as they depend more on external vendors for critical services and products. This broadens the scope of cybersecurity efforts beyond the organisation itself to include partners, suppliers, contractors and service providers. As such, organisations need to view their cybersecurity strategy holistically. It’s no longer enough to adopt a security posture that focuses solely on internal assets – businesses must extend their scope to the entire ecosystem.
- Regulatory compliance becomes more complex
The importance of regulatory compliance in cybersecurity has shifted from being a mere checkbox exercise to a fundamental aspect of any organisation’s strategy. And, with new regulations on the horizon, especially in the UK and Europe, businesses are now faced with even more stringent requirements.
For example, the EU’s Network and Information Systems Directive (NIS2) and Digital Operational Resilience Act (DORA) are pushing organisations to establish more robust cybersecurity frameworks. However, meeting these compliance requirements is not just about avoiding penalties. Organisations that invest in comprehensive cybersecurity programs, those that go beyond compliance and look to proactively protect against risks, are better positioned to maintain their reputation and trust among customers.
Additionally, as the number and complexity of regulatory frameworks continue to increase, the demand for compliance-as-a-service solutions – which help organisations navigate the complex landscape of local and international regulations – will increase. These services can offer businesses tailored solutions that simplify the process of ensuring adherence while also enhancing their overall cybersecurity posture.
4. Solution consolidation will be vital
Lastly, in response to the growing complexities of the threat and regulatory landscape, another trend we should expect to see in 2025 is the move toward single-platform solutions. Currently, organisations are heavily relying on point solutions designed to address specific security concerns, such as firewalls, anti-virus software and intrusion detection systems. However, as the threat landscape grows increasingly complex, the demand for integrated solutions will increase and it’s important that organisations have the ability to easily work through the influx of information that is out there with single-platform solutions.
Looking ahead
When it comes to cybersecurity, playing catch-up is not an option. In 2025, UK organisations need to ensure that they are staying one step ahead of bad actors. By being aware of the current trends in the threat landscape, businesses can make better-informed decisions regarding their cybersecurity posture. The threat landscape is always evolving, but organisations that stay informed, adopt a proactive cybersecurity approach, and make the most of the latest technologies will be far better positioned to protect themselves.
Business
Wearable AI: How to supercharge adoption of consumer wearable devices
By Kevin Brundish, CEO of LionVolt
As we look toward the future, the global wearables market is projected to reach $265.4 billion by 2026. This growth is further fuelled by advancements in AI, which promise to enhance the functionality and performance of wearable devices. For instance, in the healthcare industry, artificial intelligence (AI) may use the massive volumes of data gathered by wearables to communicate with patients and offer precise diagnosis, advice and support.
Despite the remarkable features and capabilities of modern wearable devices, battery life remains a significant challenge. Most smartwatches, for example, still struggle to last a full 24 hours, making it difficult for users to monitor sleep patterns and daily activities continuously without frequent recharging. With the use of AI and applications that demand increasing amounts of data, this limitation prevents wearables from becoming fully integrated tools in our daily lives.
Advances in battery technology are looking to address this issue. At LionVolt we are working on a 3D lithium-metal anode technology which helps to significantly enhance lithium-ion battery performance.
Smaller Batteries, Same Energy
The most significant advantage of lithium-metal anode batteries is their ability to provide the same energy from a smaller size battery. This gives designers greater freedom and opens new possibilities for wearable technology by enabling the miniaturisation of existing wearable designs. In addition, lithium-metal anodes may allow manufacturers to lower overall prices by moving away from costly cathode materials they use now, to cathode materials being used in automotive industry, where there is a cost advantage through economies of scale.
Higher Energy Density and Faster Charging Times
When we compare conventional lithium-ion batteries to lithium-metal anode battery technology, the lithium-metal anode batteries have a superior energy density. For users of wearable devices, this translates to longer usage periods and fewer charging interruptions as well as faster charge times, which minimises downtime and guarantees that gadgets remain operational when needed.
Enhanced User Experience
Fast charging periods and increased energy density which is key to longer usage periods improve wearable technology’s overall performance, enabling consumers to maximise its benefits without sacrificing dependability or quality
Lithium-metal anode powered batteries also improve wearable gadgets’ dependability and durability. Users can count on their wearables to function reliably day or night and to enable a variety of applications, such as health monitoring and exercise tracking. These batteries are made to endure the demands of regular use, guaranteeing that gadgets continue to be reliable and operational for long stretches of time.
The use of the highest performing materials in wearables typically comes at a high cost. However, with the advancement of new technology, it becomes possible to utilize more widely available and cost-effective anodes without compromising on performance. This approach allows for the efficient operation of wearables while also offering a cost benefit, addressing the economic challenges associated with high-performance materials.
Overcoming Adoption Barriers
One of the key reasons for the slower adoption rate of consumer wearables is the charging rate. The utility of these products can be increased, along with their consumer appeal by extending their battery life and charging timeframes. The advantages of the next generation of batteries—faster charging, longer battery life, and improved device dependability—can greatly accelerate wearables’ uptake.
Advancing Wearable Technology
By tackling the crucial problem of battery duration, coupled with a fast charge capability, lithium-metal anode technology would propel the wearables business forward. An emphasis on sustainability and safety guarantees that these developments help both consumers and the environment, while our smaller, more efficient batteries provide designers the freedom to develop creative new gadgets.
Transforming the Landscape of Wearable Technology
Lithium-metal anode battery technology brings numerous benefits to the consumer wearables sector:
- Longer Battery Life: Wearable devices will last much longer on a single charge, addressing a significant pain point for users.
- Increased Monitoring Time: Faster charging means users can monitor their health and activities for extended periods without interruption.
- Reduced Equipment Needs: With longer battery life and faster charging, users will need fewer duplicate products to cover charging times, simplifying their tech ecosystem.
Imagine being able to monitor your heart activity and more to manage health conditions without worrying if your device has enough power? With improved battery longevity, users can rely on their wearables for consistent health insights, making it easier to identify trends and make informed lifestyle changes. This seamless integration into daily life not only promotes better health management but also empowers users to take proactive steps towards their well-being.
These enhancements not only improve the user experience but also pose the potential to increase the adoption rate of consumer wearables.
Looking Ahead: Shaping the Future of Wearable Technology
Wearables have a bright future because of AI and cutting-edge battery technology, which will greatly enhance their usability, dependability and functionality. The next generation of batteries are revolutionising the wearables market and paving the way for a new era of technological innovation by emphasising sustainability, increased energy density, quicker charging times, and improved safety features.
Business
The Future of Observability: Empowering businesses through data-driven transformation
Karthik SJ, General Manager AI, LogicMonitor
The tech industry is at the cusp of a revolution, where digital transformation has shifted from aspiration to necessity. At its heart lies observability – a critical enabler for organisations navigating the complexity of modern IT infrastructures. Observability goes beyond monitoring systems or tracking performance; it transforms vast streams of system data into actionable insights that drive real-time decisions, improve operational efficiency, and ensure business resilience.
Observability: The foundation of digital transformation
The digital transformation journey requires businesses to adopt a more sophisticated approach to managing their IT ecosystems. As organisations scale and evolve, they rely on a growing array of technologies, from cloud services to hybrid infrastructures, microservices, and containers. Parallel to increasing complexity, is a need for more granular visibility into system performance, security, and user experience.
This is where observability becomes essential, unlike traditional monitoring which typically tracks basic metrics like uptime and system health, observability provides a much deeper understanding of how systems are functioning and why. It enables businesses to not only detect issues but also diagnose the root causes, empowering data-driven decisions that improve performance across the organisation.
Converting raw data into insightful knowledge is vital in a world where companies need to function more quickly and efficiently. Beyond simply detecting issues, observability’s power lies in its ability to help organisations foresee problems before they cause operational disruptions. This proactive strategy helps businesses maintain uptime, optimise resources, and, ultimately, deliver superior customer experiences.
The rise of AI-powered observability
As organisations grapple with increasingly complex hybrid IT environments, AI-powered observability has emerged as a cornerstone of innovation. These solutions go beyond ensuring uptime-they provide actionable intelligence that enables businesses to optimise IT operations and address challenges proactively. With 68% of organisations leveraging AI tools for anomaly detection, root cause analysis, and real-time threat detection, the demand for advanced observability tools is surging. This trend reflects a growing recognition that these tools are no longer just a technical necessity but a strategic enabler of business success. Observability empowers enterprises to stay ahead by driving efficiency, resilience, and adaptability in an ever-evolving digital landscape.
The path ahead: The convergence of AI and observability
As we approach 2025, businesses harnessing AI-powered observability are poised to gain a significant competitive edge over those still relying on traditional monitoring solutions. This shift is underscored by the fact that 81% of enterprises plan to boost their AI investments in the coming year focusing on predictive analytics, automation, and anomaly detection to further optimise data centers and support AI-driven innovation. The integration of AI with observability is not just about identifying problems – it’s about enabling businesses to anticipate challenges, enhance operations, and sustain a competitive edge.
For LogicMonitor, the coming year is about driving innovation in an industry that’s evolving as fast as our customers’ needs. By working closely with our clients like TopGolf and Franke, we’re helping them navigate this transformation with confidence. As observability technology becomes increasingly essential, we’re committed to empowering businesses to thrive without being held back by technological limitations.
Observability’s ever-more-important role in 2025
As 2025 approaches, observability is set to become even more integral to IT operations, compliance, and innovation. Regulations like the EU’s Digital Operational Resilience Act (DORA) which mandates robust ICT risk management and incident reporting for financial services,highlight the critical need for continuous observability throughout the development cycle. This shift will accelerate the adoption of Observability-Driven Development (ODD), a strategic approach to managing the complexities in distributed systems and microservices architectures.
The expansion of observability is driven by the increasing necessity to monitor applications, infrastructure, and services across diverse and dynamic environments while staying resilient and improving customer experience. As data volumes grow, organisations will face increased scrutiny over observability spending, making it even more crucial that they align with regulation to enhance operational resilience and compliance. AI-powered observability systems will continuously learn from new data, user feedback, and past incidents, allowing them to improve over time and become more accurate and effective at identifying anomalies, reducing noise, and pinpointing root causes.
One thing is clear as the observability landscape develops further: businesses that make investments in cutting-edge, AI-powered observability solutions will be better prepared to meet tomorrow’s problems and thrive in the rapidly shifting digital economy.