Visa has created a unique solution for paying crypto gas fees through its cards, which they claim is in the testing stage currently.
A product manager of Visa, Mustafa Bedawala, has announced how the payments firm is testing a new solution. The experiment involves Visa Cards that could pay for crypto gas fees. The firm said its goal through the experiment was to simplify blockchain transactions.
Visa released a detailed report describing the experiment. The report highlighted the problems faced by users in the crypto industry currently.
It said, “Consumers transacting in Ethereum find themselves constantly managing their ETH balance to cover gas fees, which is a burdensome process that distracts them from their primary blockchain activities. When comparing the complex nature of blockchain transactions with the simplicity of fiat-based payment transactions supported by the Visa network, it becomes evident that improvement is needed.”
Through its solution through Visa Cards, the company said on-chain gas fees could be settled by users directly. They would no longer have to buy a blockchain’s native tokens to settle gas fees, it said.
Visa stated it would use the ERC-4337 standard of Ethereum for the solution and the Paymaster smart contract. The smart contract would use the information and checks of its off-chain component to settle the gas fees. Visa also attached a pictorial representation of how the process would work under the smart contract.
It also described how the Paymaster framework had immense potential for merchants and dApps. Wallet providers could also use the innovation to introduce Visa Card payments for gas fees.