Visa, an American financial services company headquartered in San Francisco,is trying a new technique that allows on-chain gas fees to be paid by means of a Visa card.
Visa Highlights Need to Monitor Ether Gas Levels
Customers Regularly Overpay
The usual Ethereum approach entails customers purchasing ETH from an exchange or on-ramp service and moving it onto their wallets to cover fluctuating gas expenses. Because of the constant change of gas costs, customers regularly overpay or have inadequate ETH, causing complexities and issues.
Visa Seeks to Use Ethereum’s ERC-4337
On the other hand, the innovative approach makes use of Ethereum’s ERC-4337 protocol and the “Paymaster” smart contract in order to allow for off-chain gas fee collection.
The method comprises the user initiating an Ethereum transaction via wallet and sending it to the paymaster. Using Cybersource, the web service computes the gas fee and invoices Visa. Following that, a digital signature is uploaded and confirmed prior to linking the wallet and transfers to Ethereum. Paymaster checks the signature and pays the gas fee.
This series of procedures enables the user to directly pay petrol fees with their Visa card off-chain, removing the necessity for users to retain ETH just for fee payment.
Minimizing Complexity for Blockchain Consumers
Notably, this proposal offers to minimize complexity for blockchain consumers by allowing them to immediately pay gas fees using their Visa card off-chain, preventing the requirement for users to keep ETH just to pay costs.
Despite the current state of crypto winter, Visa has been reported to be on the lookout for software engineers with expertise in programming, administrative systems, and Web3 technologies. This simply means that the platform will continue to evolve while offering services to the cryptocurrency sector via a new project focused on stablecoin payments.
Al Kelly, the CEO of the credit card giant detailed briefly the organization’s plans regarding Central Bank Digital Currencies (CBDCs) and private stablecoins, at the start of this year.