Direct Card Payments for Gas Fees
Gas fees on blockchain networks like Ethereum (ETH) have traditionally required users to maintain a balance in native cryptocurrencies. However, Visa’s latest venture offers a groundbreaking solution. Through an internal experiment, the financial titan is aiming to let users settle these fees directly using a Visa-linked card, eliminating the need to hold any cryptocurrency solely for transactional costs.
Visa’s Technological Leap
Harnessing the capabilities of Ethereum’s ERC-4337 standard, Visa employs a “paymaster” smart contract, seamlessly managing the intricate processes in the backdrop. The statement released by Visa highlights, “By doing so, Visa helps take care of the complex processes behind the scenes, enabling users to effortlessly select their Visa card to cover gas fees.”
Promising Initial Tests
To validate this pioneering concept, Visa engineers piloted an execution on Ethereum’s Goerli test network. Their tests were a success, confirming the feasibility of blockchain transactions coupled with off-chain gas fee payments.
Addressing the Blockchain Learning Curve
Visa noted the often-intimidating intricacies of blockchain-based transactions which can be a barrier for many users. Their statement emphasized, “The intricacies and complexities of blockchain-based transactions have been a significant stumbling block for many users. Our experiment aims to offer a promising approach to substantially addressing these challenges.”
The Bigger Picture: Digital Currency Access
This endeavor by Visa isn’t just a stand-alone project. It’s a component of the company’s wider drive to render digital currency transactions more approachable for the masses. Visa’s outlook on the future sees a potential adoption of this gas fee mechanism by merchants, decentralized apps, and wallet providers. The company also signaled its enthusiasm for joint ventures, with their crypto-specialized teams being receptive to partnering with other entities diving into the world of programmable payment technology.