Visa, a major payment company, is looking into the possibility of allowing users to pay transaction fees on Ethereum, a popular smart contract platform, using their credit cards.
This move could simplify the complex process of transacting over Ethereum. Currently, users are required to use ETH to pay for Ethereum’s gas fees, which can make transactions complicated.
Using a card to pay for gas fees
By using a card to pay for gas fees, Visa believes the number of steps needed to complete transactions will be reduced.
Gas fees are charges incurred for transactions or operations on blockchains, representing the computational effort required to execute an operation. In the case of Ethereum, gas fees must be paid in ETH, which can be a challenge for some users.
To conduct transactions on Ethereum, users need to maintain a balance of ETH to cover the gas fees. Despite the availability of stablecoins like USDC, this can be inconvenient and complex.
Some opt to use on-ramp services to convert fiat currencies into ETH, while others buy ETH from a centralized crypto exchange and transfer it to their wallet.
However, these methods lack the simplicity and immediacy of traditional financial transactions, and expose users to the volatility of crypto exchange rates.
Visa collabs across three depts.
To address this, Visa has collaborated across three departments to allow users to use a card loaded with fiat currency to pay for Ethereum’s gas fees.
We have collaborated to propose a solution that shows how users can pay their on-chain gas fees using fiat money through a card on file.
Our proposed solution utilizes Ethereum’s ERC-4337 standard and a paymaster contract. Visa cardholders can directly cover their gas fees with this approach.
We are confident that this adaptable and innovative approach can enhance the onboarding process for new crypto users and enhance the experience for existing ones.
