Visa Tests New Solution for Paying Gas Fees with Fiat
Visa has completed tests allowing users to pay on-chain gas fees with fiat money through its card payments. The conventional method of acquiring ETH to cover gas fees is a hassle for cryptocurrency wallet users. Visa’s solution utilizes Ethereum’s ERC-4337 standard and a “paymaster” smart contract. Here’s how it works:
1. User triggers an Ethereum transaction from their wallet.
2. Transaction is directed to the paymaster, which calculates the gas fee.
3. Paymaster charges Visa using Cybersource and generates a digital signature.
4. Wallet adds the signature to the transaction and sends it to the Ethereum network.
5. Paymaster verifies the signature and covers the gas fee.
This allows users to use their Visa cards to directly cover gas fees, eliminating the need to hold ETH solely for fee payments. Recent trials on the Ethereum Goerli testnet have been successful. The implications are significant, as merchants and dApps could enable gas fee payments through Visa cards. This development simplifies the user experience and promotes the integration of traditional payment solutions with cryptocurrencies.
Hot Take:
Visa’s exploration of this off-chain gas fees solution shows its commitment to addressing pain points in the crypto ecosystem. If implemented widely, it could greatly reduce obstacles for blockchain users and facilitate seamless integration between traditional and crypto payments.
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