Leading the way in the payments industry, Visa is embarking on a transformative journey that could reshape user experiences in a significantly. Currently in the testing phase, Visa is developing an innovative solution that enables users to pay on-chain gas fees using their Visa cards.
Mustafa Bedawala, a product manager at Visa, recently shed light on a critical challenge associated with cryptocurrency wallets. This challenge revolves around the ongoing struggle for users to manage their Ether balances to account for fluctuating gas fees.
In the conventional Ethereum process, users usually obtain ETH from exchanges or on-ramp services and then transfer these funds to their wallets to cover variable gas fees.
However, this constant adjustment of gas prices often leads to users either overspending or lacking sufficient ETH, resulting in complications and hurdles.
Visa's ingenious solution capitalizes on Ethereum’s ERC-4337 standard and harnesses the power of the "Paymaster" smart contract to facilitate off-chain gas fee settlement.
The process begins with users initiating an Ethereum transaction through their wallets, which is then directed to the paymaster.
A web service calculates the gas fee, and Cybersource charges Visa accordingly.
Afterward, the wallet generates a digital signature, swiftly verifies it, and attaches it before sending the transaction to the Ethereum network. The Paymaster validates the signature and covers the gas fee.
This innovative sequence of steps empowers users to conveniently settle gas fees with their Visa cards off-chain, eliminating the need to hold ETH solely for fee payments. This advancement has the potential to greatly simplify the user experience and make crypto transactions more accessible to a wider audience.
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