The intricacies of paying transaction fees, commonly referred to as “gas fees,” on the Ethereum blockchain often prove too convoluted for the average individual. Recognizing this issue, Visa, the prominent credit card company, has concluded trials of a novel method aimed at enabling users to pay these fees in fiat currency through their credit cards. This innovative approach was detailed in a recent blog post.
Currently, every Ethereum transaction incurs a gas fee, including the transfer of its native cryptocurrency, ether (ETH). Managing ETH balances to cover these fees is perceived as a cumbersome process by Visa. Streamlining this complexity could pave the way for more accessible and user-friendly blockchain-based transactions, the company asserts.
In juxtaposition with the straightforward nature of fiat-based Visa payment transactions, Visa acknowledges the need for enhancements in the realm of blockchain transactions. The company proposes leveraging Ethereum’s ERC-4337 standard, which allows smart contracts to function as wallets on the blockchain via a concept called “account abstraction.”
Coupled with a paymaster contract, a smart-contract account capable of sponsoring gas fees on behalf of users, this solution could enable direct payment of gas fees using Visa cards.
Testing of this concept was executed on the Ethereum Goerli “testnet,” a dedicated testing network for Ethereum. Visa envisions that merchants and decentralized applications could deploy their paymaster systems or employ existing wallets to streamline transaction processes. Providers of paymaster services might also furnish users with options, including card-based gas fee payment.
Visa has already demonstrated an active involvement in the cryptocurrency sector through various projects. In a previous initiative, the company explored the conversion of digital assets into fiat payments, showcasing its commitment to innovation in this evolving landscape.
