Match Group Metaverse Plans & Tinder's Virtual Economy
Tinder's Evolution: Explore, Virtual Economies, and a Dating Metaverse
Tinder has recently launched “Explore,” a revamped section within the app designed to foster more engaging interactions. This includes features like the second installment of “Swipe Night,” real-time chat capabilities, matching based on shared interests, and more. Now, Match Group, Tinder’s parent company, is outlining its future strategy for both Tinder and Explore, focusing on exclusive, shared, and live experiences alongside a virtual goods economy powered by Tinder Coins.
Introducing Tinder Coins and a Virtual Economy
The initial phase of this virtual economy involves Tinder Coins, currently undergoing testing in select European markets, as confirmed by Match Group.
In the coming year, Tinder Coins will be accessible to all users globally, enabling in-app purchases of existing features like Boost and Super Like – tools designed to enhance match potential. Furthermore, they will facilitate access to previously subscription-only features, such as See Who Likes You, on a pay-as-you-go basis.
The platform will also utilize Tinder Coins to incentivize positive user behaviors. This includes rewarding profile verification and the addition of video content to user bios, for instance.
Long-Term Vision: Virtual Goods and a Trading Ecosystem
Looking ahead, Tinder intends to develop a comprehensive virtual goods and trading ecosystem, with plans set for 2022 and beyond. This strategic direction was revealed during Match Group’s Q3 earnings report, including details in the Shareholder Letter and during the investor earnings call.
Match Group's Q3 Performance and Pandemic Impact
Match Group reported Q3 revenue of $802 million, representing a 25% increase year-over-year. The company also reached 16.3 million paid subscribers, a 16% increase. However, the company acknowledged the impact of the COVID-19 pandemic on its business.
Early pandemic lockdowns prompted a shift towards virtual interactions. Even now, some users remain hesitant to meet in person. Furthermore, ongoing COVID-related disruptions in Asia have led to a revised Q4 revenue forecast of $810-$820 million, lower than previously anticipated by analysts.
Adapting to a Changing Dating Landscape
To address these evolving market dynamics, Tinder is prioritizing virtual experiences within the app, rather than solely focusing on facilitating offline connections. This has resulted in the launch of Tinder Explore and is now driving the development of the planned virtual goods-based economy.
Virtual Goods: Self-Expression and Standing Out
According to Match Group CEO Shar Dubey, virtual goods will empower users with greater self-expression and the ability to distinguish themselves, particularly within the interactive “Explore” experiences. She envisions users collecting and gifting these virtual items to one another.
In 2022, Tinder will concentrate on designing, categorizing, and establishing the value structure of these virtual goods. Extensive testing and refinement will follow, based on user feedback.
Dubey expressed optimism about the potential of this initiative, stating that it could become a significant long-term revenue stream for Tinder.
Leveraging Hyperconnect and the Dating Metaverse
Beyond Tinder’s virtual economy, Match Group is also exploring the potential of Hyperconnect, the Seoul-based social app maker acquired for $1.73 billion earlier in 2021. While Hyperconnect’s performance has been impacted by COVID and other challenges, Match Group remains confident in its long-term value.
Hyperconnect is currently testing Single Town, an avatar-based dating app and “metaverse” experience. Users interact through real-time audio in virtual spaces, such as a bar, and can express interest in each other before connecting privately.
Dubey described this as a transformative approach to meeting and getting to know people, more closely mirroring real-world interactions.
Expanding the Metaverse Experience Across the Portfolio
Match Group intends to extend this type of interactive experience across its entire portfolio of dating apps. The technology platform developed by Hyperconnect for Single Town is designed to be easily integrated into other platforms.
A metaverse-like platform could potentially integrate with Tinder’s virtual goods economy, allowing users to personalize their avatars or gift items to others using virtual currency, similar to platforms like Roblox, Fortnite, and Meta’s Horizon.
Match Group’s Shareholder Letter highlighted the potential of this dating metaverse and the innovative experiences it could create.
Future Outlook and Leveraging Hyperconnect’s Capabilities
Match Group CFO and COO Gary Swidler emphasized the long-term prospects for Hyperconnect, noting its potential to significantly contribute to the overall growth of the company. He highlighted the value of Hyperconnect’s video, audio, AI, moderation, and safety capabilities.
Swidler also suggested that the metaverse elements and user experience developed for Single Town could be incorporated into existing Match Group apps, either as standalone features or integrated experiences.
