System and computer-implemented method for dynamic merchant configuration in a payment terminal for transacting in a virtual environment

A method for dynamic merchant configuration in a payment terminal for transacting in a virtual environment, the method comprising:

• identifying, by a Virtual Reality (VR) device, location information of a virtual user within the virtual environment, wherein the location information of the user includes virtual coordinates of the user in a three-dimensional virtual environment, performing a transaction in one of a plurality of establishments configured in the virtual environment, the virtual user corresponding to a physical user;
• determining, by the VR device, a merchant and associated details corresponding to one of the plurality of establishments based on the location information;
• sending, by the VR device, the merchant and associated details to a payment terminal upon the physical user initiating payment for the transaction using a physical payment card in the payment terminal, wherein the payment terminal sends a transaction message comprising the merchant and associated details to an issuer system via a gateway associated with the merchant for authorization;
• and
• receiving, by the VR device, a result of authorization of the transaction message from the issuer system via the gateway.

A payment terminal comprising:

• a processor;
• and
• a memory communicatively coupled to the processor, wherein the memory stores the processor instructions, which, on execution, cause the processor to:
• receive location information of a virtual user within a virtual environment, wherein the location information of the user includes virtual coordinates of the user in a three-dimensional virtual environment, performing a transaction in one of a plurality of establishments configured in the virtual environment from a Virtual Reality (VR) device, the virtual user corresponding to a physical user;
• determine a merchant and associated details corresponding to one of the plurality of establishments based on the location information upon the physical user initiating payment for the transaction using a physical payment card in the payment terminal;
• send a transaction message comprising the merchant and associated details to an issuer system via a gateway associated with the merchant for authorization;
• and
• receive a result of authorization of the transaction message from the issuer system via the gateway.