Payments behemoth Visa has hinted at potential Ethereum network integration to provide an automated payment system. Blockchain has already been used by Visa for some time. It is preparing for a self-custody wallet this time, though.
Visa Wants Automatic Transactions On Ethereum
One of the biggest payment processors, Visa, is developing new strategies to permit transactions devoid of the use of a third party. The world’s largest payments company is implementing a system of automatic payments utilizing the Ethereum blockchain.
It intends to use the Ethereum account abstraction in its proposal, which was first introduced by founder Vitalik Buterin in 2017. According to Visa, this account abstraction will enable programmable validity to be used to verify and authenticate transactions on the blockchain.
According to the Visa proposal, “this means that validity conditions can instead be coded in a customisable fashion into a smart contract on a per-account basis, rather than hard coding them into the Ethereum protocol that will apply to all transactions in a generalized way.”
Visa essentially intends to construct a single Ethereum account that will incorporate elements of user accounts and smart contracts to create a single “delegable account.” It makes an attempt to incorporate the operations found in bank accounts into self-custodial wallets to enable automatic payments.
This will enable a business, for instance, to create a smart contract that will enable customers to make automatic payments from their self-custody wallets. This entails implementing automatic bill payments on a decentralized blockchain system, which are now only possible through traditional financial infrastructure. Although it is mentioned in the most recent EIP-4337, this is still still in the conceptual stage and has not yet been put into practice.
Visa claims to be collaborating with outside Ethereum developers to accomplish this. Beyond creating the aforementioned self-custody wallets, effort is also being done to improve the network’s transaction capacity and speed.
Just two months ago, it was revealed that Visa has submitted trademark applications to create a cryptocurrency wallet. From the perspective of payments, the organization thinks that most blockchains require greater scalability in order to be embraced by major players like Visa.