News JVTech Paying in crypto is still complicated but Visa is preparing a revolution for payment in Ethereum
Published on 25/12/2022 at 15:35
With the progression of the adoption of cryptocurrencies over the years, the sector has conquered the hearts of the major brands of telepayment systems. Visa, the payment giant, even wants to work closely with the second largest crypto.
Visa wants to set up automatic payment system on Ethereum
While the crypto sector is at a standstill due to the fall in the price of Bitcoin and the collapse of renowned players such as the FTX platform, Visa intends to develop services around virtual currencies.
In order to meet a growing demand around payment in cryptocurrency, Visa plans to allow its customers to make automatic payments directly via crypto wallets. To carry out the development of this innovation, Visa has approached the second largest cryptocurrency: Ethereum (ETH). Thus, it will be possible to pay only via crypto wallets self-managed by the Ethereum (ETH) network.
To do this, the development team has developed a proposal called abstraction, allowing user accounts to be combined with smart contracts on Ethereum so that they can pay automatically and in a simplified way. This process will remove the signature verification that can be tedious for those uninitiated in cryptocurrency. Indeed, several beginners are often the subject of loss, in particular by making mistakes in their first crypto transactions.
In this sense, this type of initiative will surely democratize access to cryptocurrencies by giving a more intuitive and efficient approach to a new type of clientele. This is all in line with Ethereum founder Vitalik Buterin. The CEO himself explained that after The Merge update, account abstraction is one of the priorities for Ethereum in the year 2023.
Payment giants in search of crypto
For the moment, cryptocurrencies such as Bitcoin or Ethereum are considered more as speculative investments intended to generate possible capital gain. Nevertheless, if the potential of these transactions by abstraction proves to be as effective in practice, then the mechanism could be considered a revolution for crypto payments.
From Master to Visa, the payment giants have understood this well. Thus, the two companies strive to offer new solutions that go in this direction. As a reminder, Visa’s competitor, Mastercard, had offered the payment of NFT directly by bank card.
According to several analysts, these initiatives could be of great use to the crypto sector and give additional credit to its emerging currencies, insofar as these will ultimately be real means of payment.
