Global payment giants, such as Mastercard and Visa, are no longer strangers to the blockchain market. Both companies are now significant adopters of blockchain technology and have partnered with multiple crypto companies to promote digital payments
Mastercard, for example, recently struck a partnership with Binance to provide crypto cards in some Latin American nations. But VISA plans to simplify things further by making it easy for people to pay gas fees using their cards. Let’s discover more about this new important feature.
How VISA Wants to Simplify Crypto Payments?
The payment service company plans to enable users to pay on-chain gas fees using a Visa card. Product manager at Visa, Mustafa Bedawala, shared a post on Twitter (now X) describing the constant need to track Ether balances for paying gas fees as one of the problems with crypto wallets. The current procedure on Ethereum involves users buying ETH from an exchange or on-ramp service and transferring it to their wallet to cover gas fees.
We're excited to share our experimental solution on Paying Onchain Gas Fees with a Visa Card
At @Visa, we've been exploring ways to simplify blockchain transactions
Imagine paying for gas fees as easily as buying coffee with your card!
But how did we get here?
🧵👇 pic.twitter.com/uGhAde60xe
— Mustafa (@digitalmustafa) August 10, 2023
However, this process isn’t as easy or seamless as users would want it to be. Visa’s new approach to enabling off-chain gas fee settlement relies on using Ethereum’s ERC-4337 standard and the “Paymaster” smart contract. According to Visa, the process is pretty simple. 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. Then, a digital signature is issued and validated. It is also attached to the wallet before being delivered to Ethereum. Finally, the Paymaster confirms the signature and pays the gas fees.
The procedures allow users to pay gas fees off-chain with their Visa card. It also eliminates the need to solely hold ETH for gas fees. Visa believes its new initiative will streamline how people interact with decentralized applications (Dapps) on Ethereum. And also “help set the stage for a more accessible and user-friendly approach to digital transactions.”
Payment Companies Are Making Their Way Into Crypto
Visa’s presence in the crypto market is not an isolated event but instead joins the growing cases of traditional payment companies adopting Web3. Other payment giants, such as Mastercard and PayPal, have crypto-focused services.
Likewise, PayPal recently announced the launch of its dollar-pegged stablecoin, PYUSD, making it the first US company of its size to launch a dollar-backed stablecoin.
2/ PayPal launched a new crypto stablecoin called PayPal USD on Ethereum ($PYUSD) 60 minutes ago.
The new stablecoin will be issued by Paxos Trust Co. and fully backed by United States dollar deposits, short-term Treasuries, and similar cash equivalents. pic.twitter.com/m8lmM6DzWw
— defizard (@belizardd) August 7, 2023
The presence of these firms shows the impressive growth of Web3. In addition, it reflects that cryptocurrencies are no longer an unwanted asset class with negative undertones. Instead, there’s a growing interest in digital assets. Mainstream adoption reflects that the world is finally warming up to Web3, adding to its financial potential.Â
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