The world of virtual and augmented reality sometimes seems like a fairytale – something out of a fantastic science-fiction movie. Virtual sword fights on the top of a mountain.  Galactic races through a meteor shower.

The sky’s the limit!

But the truth is that VR and AR are not a dream – they are here and now – and they are coming. This was very clear when I attended the International Investment Forum in Virtual, Augmented Reality (IIFVAR) in Zürich. The number of startups exploring the business, scientific, industrial and medical applications of VR/AR as well as the interest from major companies and institutions in the technology only proves that it will soon find its way into the daily lives of people around the world.

One area where it is already on the horizon is eCommerce.

As the bottom continues to fall out of the traditional retail market, more and more merchants – big names and upstarts alike – are turning to online shopping to save their skin.

Of course, this is no accident.

It’s not just as if someone waved a magic wand and decided all of a sudden that traditional brick-and-mortar stores should dry up and online shops should flourish.

There is a reason – and that reason is customer experience.
As the internet has matured and technology has made more and more advancements, the customer experience of buying online has outstripped the experience of shopping in-person.

It’s quicker. It’s easier. And in most cases it’s a lot less stressful.

But as the eCommerce space gets more crowded, merchants are inevitably going to look for ways to differentiate themselves – to “up their game” so to speak – so they can stand out from the competition.

And that’s where VR and AR come in.

They give merchants the ability to showcase their products in a new way. In some cases, customers can “transport” items, such as furniture into their own living room or dining room to see how it matches their current setup.

Clothing merchants are exploring ways to add VR footage to their product pages to better help customers visualise them in use.

And then there is mobile eCommerce.

The idea of shopping on the go is already a big hit with consumers. But add elements of AR to the mix and the whole experience really takes off.

Shoppers could overlay a virtual image of sunglasses to their picture – as they stand on top of Rigi Mountain – before deciding to pull the trigger on their purchase.

Of course, with “augmented” shopping comes the opportunity to more creative and engaging marketing opportunities closely linked to the online shopping experience – especially in the area of mobile eCommerce.

Our own experience in the payments industry and the experience of watching the various speakers at last week’s IIFVAR make it clear that many challenges lie ahead.

Many merchants – even if they have moved into the eCommerce space – still rely on outdated technology to collect payments.

And the forward-thinking startups developing cutting-edge VR and AR technology will ultimately need a way to monetize it.

Looks like there is a lot of work still ahead on both fronts!