Visa Plans To Facilitate Automatic Transactions on Ethereum Blockchain

• Customers may pay with their own wallets that they control directly.
• These purchases will likely be paid for automatically via Visa utilizing Account Abstraction.

Visa has proposed a system that would enable Ethereum users to conduct transactions directly with one another, without the need for a trusted third party. Customers may pay with their own wallets that they control directly.

These purchases will most likely be paid for automatically. Via Visa utilizing Account Abstraction, a feature of Ethereum that is currently being researched. Customers will be able to make automatic payments, which Ethereum currently doesn’t provide.

A Delegable Account

Furthermore, Visa emphasized its usage of account abstraction, which allowed them to combine user account characteristics with smart contract capabilities in a single model of Ethereum accounts. The business started referring to the resultant account as a “delegable account.”

With this approach, a shop owner may initiate an automated payment plan via the use of a smart contract. When a user with a delegable account authorizes permission, the merchant may begin a payment using the charge function of the automated payments contract. The user’s delegable account also adds the auto-payment contract to a whitelist for future payments.

Because of the company’s Crypto Hackathon Challenge, 2022, this new function was developed. With Ethereum, the user is responsible for initiating the transaction by submitting a request. Unlike bank accounts and custodial wallets, self-custodial wallets do not provide this functionality. These kinds of transactions are not simple on the blockchain, as previously explained.

Moreover, Visa is also collaborating with Ethereum to safeguard client privacy, speed up transactions, manage a large number of transactions, and improve security and integration with other blockchains.