Visa suggests using Ethereum to automate payments

The credit juggernaut Visa has proposed a plan that would enable Ethereum users process transactions without the need of a middleman. They have access to use their own purses for self-custodial transactions.

These payments using Visa will probably be done using Account Abstraction, a capability of Ethereum that is currently being reviewed, for direct deposits. Customers will be able to pay regular bills, which Ethereum does not now permit at the most fundamental level.

How will the integration with Ethereum function？

Visa emphasized that by using profile abstractions, it was capable of combining the functionalities of user profiles and blockchain based into a single product of Ethereum accounts. The company alluded to the resultant entity as a “delegable account.”

A retailer can create a smart agreement for automatic payments using this technique. When a customer with a delegable profile authorizes permission, the retailer can start a transaction by using the charging feature of the automatic payment agreement. The user's delegable profile also adds the auto-payment agreement to a whitelist for upcoming repayments.

This functionality was developed by the company as a part of its 2022 Crypto Hackathon Challenge. The client must explicitly initiate and carry out the trade under Ethereum's features. Bank balances and custodial wallets support the capability, however self-custodial accounts do not. As mentioned, “on the blockchain, these kinds of transactions are not that straightforward.”

The recommendation was made as the bear market is still present.

This concept arose as the cryptocurrency market is still cleaning up the fallout from the Terra Sisters catastrophe and the FTX debacle. Shareholders will undoubtedly find encouragement and potential in the alignment of cryptocurrencies with banks.

In addition, Visa is collaborating with Ethereum to increase safety, manage a large volume of transactions, help accelerate transactions, and interface with some other blockchains while maintaining consumer privacy.

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