Visa also published a technical piece explaining how they would implement the process to generate automatic payments from crypto wallets.
In a major breakthrough in payment mechanisms, Visa announced in one of their blogs that crypto users could pay their bills and automatic subscriptions through their crypto wallets. In the blog post, Visa wrote about how without the user needing to approve every transaction manually, funds could be used from their Ethereum-backed wallets for automatic payments like any other bank account. Auto payments have gained popularity in the last few years through their convenience and easy usage. Using a similar payment mechanism through crypto could prove to be extremely popular.
Visa explained the technical details behind the process in a technical piece, writing how a new type of wallet called a ‘delegable account’ would make it possible. These new kinds of self-custodial wallets would be based on the concept of ‘Account Abstraction (AA).’ It would enable the user accounts to operate like smart contracts and make transactions successful without the user’s approval every time.
The head of CBDC and Protocols at Visa, Catherine Gu, said, “To help our clients and partners innovate, we need to immerse ourselves in technologies that can bring real value to the payments ecosystem.” She further added, “We’re focused on growing our core competencies in Web3 infrastructure layers and blockchain protocols driving crypto development.”