Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
American payment giant Visa is investigating methods to enable the payment of on-chain gas fees using a Visa card.
In a recent statement, Visa’s Product Manager Mustafa Bedawala highlighted a challenge that cryptocurrency wallet users encounter, which necessitates the continuous management of their ETH balance to cover gas fees.
The company is testing a feature that would allow users to pay their on-chain gas fees directly in fiat currency through card transactions, thus simplifying blockchain operations.
Visa’s Approach to Gas Fees
In Visa’s proposed model, users may no longer be required to possess native tokens specific to a blockchain solely for the purpose of covering gas fees. This solution would utilize Ethereum’s ERC-4337 standard along with a ‘Paymaster’ contract, enabling customers to use a Visa card for direct gas fee payments.
This method is anticipated to provide significant relief for current users and is also intended to facilitate a smoother onboarding experience for newcomers.
ADVERTISEMENT
Related Posts
“Our suggested solution frees users from the obligation to hold native blockchain tokens or frequently engage in token bridging just to cover gas fees. From the user’s standpoint, this solution is attractive due to its simplicity and ease of implementation.”
Visa proposes a mechanism that involves processing the user’s gas fee payment off-chain via a Visa card and subsequently covering the equivalent amount on-chain on their behalf. This method streamlines the gas fee experience, akin to a standard card payment transaction.
The infrastructure established by the payments company to enable off-chain gas payment functionality revolves around a ‘Verifying Paymaster,’ which is fundamentally a smart contract that assigns all essential checks and information sourcing to an off-chain element.
The on-chain paymaster smart contract can then leverage the data and authorization supplied by the off-chain component to confirm and execute the payment for the gas fee.
The payment is handled through Cybersource, and the web service generates a digital signature. Successful verification of the signature confirms that the web service has indeed processed the card payment to cover the operational costs. In this scenario, the paymaster contract will function without any issues and will cover the relevant gas fee accordingly.
Gasless Transactions
Visa has tested this concept on the Ethereum Goerli testnet, utilizing available open-source tools such as Stackup’s userop.js library. The trial transactions effectively managed fees through the Paymaster, removing the necessity for ETH in the process.
SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
