How VISA Plans to Simplify Crypto Payments
Visa, one of the leading global payment giants, is aiming to simplify crypto payments by enabling users to pay on-chain gas fees using a Visa card. This new feature eliminates the need for users to constantly track Ether balances for gas fees, making the process easier and more seamless.
Visa’s Approach to Off-Chain Gas Fee Settlement
Visa’s approach relies on using Ethereum’s ERC-4337 standard and the “Paymaster” smart contract. Here’s how it works:
- The user initiates an Ethereum transaction using their wallet and sends it to the paymaster.
- The wallet calculates the gas fee and charges Visa using Cybersource.
- A digital signature is issued, validated, and attached to the wallet before being delivered to Ethereum.
- The Paymaster confirms the signature and pays the gas fees.
This off-chain payment process allows users to pay gas fees with their Visa card, eliminating the need to hold ETH solely for gas fees.
Visa’s Initiative and Impact on the Crypto Market
Visa’s new initiative aims to streamline how people interact with decentralized applications (Dapps) on Ethereum, making digital transactions more accessible and user-friendly. This move by Visa reflects the growing trend of traditional payment companies entering the crypto market, joining the likes of Mastercard and PayPal. The presence of these payment giants in the crypto space signifies the mainstream adoption and increasing interest in digital assets.
Hot Take: Simplifying Crypto Payments for Mass Adoption
Visa’s efforts to simplify crypto payments with its new feature demonstrate the industry’s progress towards mass adoption. By allowing users to pay gas fees with their Visa cards, it removes a significant barrier to entry and makes crypto transactions more seamless. As traditional payment companies continue to embrace blockchain technology, it paves the way for a future where cryptocurrencies and digital assets are widely accepted and integrated into our daily lives.
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