VISA and Ethereum in search of innovation – The credit card payment giant VISA is projecting itself into cryptocurrencies and the web3 in the very long term. The multinational wants to be fully part of the construction of this future of internet, consisting of decentralized applications of interconnected blockchain networks. Today is with Ethereum (ETH) that VISA wishes to develop a joint project.
Recurring automatic payments from a private wallet
With the dark affair FTX, centralized cryptocurrency custody solutions are no longer in vogue. The so-called wallets “non-custodial” (not hosted), whose users own the private keysare therefore highly acclaimed.
In a publication published on December 19, 2022, we discover that the giant VISA obviously anticipated this tendency to decentralization which is getting stronger again in the crypto sector. Indeed, VISA proposes to use ” Account Abstraction » (AA): a developing feature of the network Ethereum which will aim to allow the automatic payments.
“As blockchain adoption increases, there will be an increased need for products that provide superior user experience and core functionality that supports real-world use cases. Today, in a few simple steps, we can set up automatic recurring payments directly on our mobile banking apps. (…) However, this is still not an easy task on a blockchain like Ethereum, (…) [ces paiements automatiques] require engineering work first. »
VISA Statement
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Ethereum and VISA together to facilitate blockchain payments
L’Account Abstraction (literally the account abstraction) is a Ethereum improvement proposal. It aims to operate user accounts (wallets), such as smart contracts (smart contracts). This future functionality will allow more flexibility in the process of validation of a transaction on the Ethereum network.
For this, the user will first create a “delegated account” (delegable account). When he then goes to the account of a service/merchant offering a smart contract recurring automatic payments, he can then opt for his delegated account makes these payments without requiring future actions on its part (at the frequency and in the amount defined). Exactly as for debits by bank transfer or credit card.
“As one of the largest payment networks in the world, VISA is at the forefront of designing innovative payment products and solutions (…) and we are actively exploring new smart contract approaches to help to make money and payments programmable. (…) We consider automatic payments to be an essential functionality that is lacking in existing blockchain infrastructures. (…) L’Account Abstraction will provide non-hosted wallets with the ability for recurring automatic payments. »
VISA Statement
Not only bank card giants no longer oppose cryptocurrencies at all, but we even see now that they help in development and innovation in this sector. Indeed, VISA’s major competitor, MasterCardhelps on his side to facilitate the adoption of non-fungible tokens (NFT).
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