Visa is also making some pretty impressive moves in the crypto space these days, moves that support the developments that we have been seeing in the booming financial markets. Check out the latest relevant reports below.
Visa reveals exciting announcements
Visa is currently testing a new system that allows users to pay Ethereum (ETH) gas fees with their credit or debit card. According to a recent post on Visa’s website, one of the major obstacles in using the Ethereum network for payments is having to settle network fees after each transaction.
Paying gas fees demands that users have some amount of ETH on hand at all times to carry out transactions, which is a hindrance to adoption and user experience.
“Recognizing this challenge, we explored an option of how to allow users to pay their on-chain gas fees directly in fiat money through card payments, thereby simplifying blockchain transactions. Under this scenario, users may no longer need to hold native tokens specific to a blockchain solely for the purpose of paying gas fees.”
The same notes continued and stated the following:
“Such a potential solution would leverage Ethereum’s ERC-4337 standard and a paymaster contract, enabling users to use a Visa card to directly pay for gas fees.”
Visa is highly optimistic about the potential of Ethereum’s ERC-4337 standard, also known as Account Abstraction, as a gateway to payments solutions on the network.
The Crypto Protocol, Visa Innovation Center, and Visa Research
To explore this concept further, we have launched a hackathon. The Crypto Protocol, Visa Innovation Center, and Visa Research teams have conducted an internal hackathon to build on the previous work described in ‘Rethink Digital Transactions with Account Abstraction.’
The team took the opportunity to explore paymasters under ERC-4337.
The result of this collaborative effort is a proposed solution flow that demonstrates how to enable users to pay their on-chain gas fees in fiat money through a card on file.
This proposed solution is incredibly innovative and adaptable, utilizing Ethereum’s ERC-4337 standard and a paymaster contract to allow Visa cardholders to directly cover their gas fees.
The firm also said the fact that they firmly believe that this approach can significantly streamline the onboarding process for new crypto users and improve the experience of current users.
