Visa Pilots Innovative Approach For Streamlining Gas Fee Payments
American payment solution giant, Visa, is embarking on a journey to revolutionize payments for on-chain gas fees by improving the payment possibilities of its Visa cards. In a recent report, Mustafa Bedawala, Visa’s Product Manager, stated that one of the most significant challenges cryptocurrency wallet users encounter is the payment of gas fees.
Gas Fee Payment Issues
He further explained that customers usually have to watch their ETH balance closely to ensure they have sufficient balance to cover their gas fees. Bedawala added that this issue made the company experiment with a transformative approach to find an optimal solution.
According to him, Visa’s solution would enable users to directly pay their on-chain gas fees using traditional fiat currency through secure card transactions. Thus, they implement a simple and effective way to complete their blockchain-based transactions.
Based on the framework presented by Visa, users may no longer need to possess native tokens exclusive to a particular blockchain solely to pay their gas fees. This inventive resolution is built upon the Ethereum ERC-4337 standard and a cleverly devised ‘Paymaster’ contract, which empowers customers to utilize their Visa cards to settle gas fees seamlessly.
If successful, this strategy will be an immense relief to existing users and serve as a seamless onboarding process for newcomers to the world of cryptocurrencies and blockchain technology. Visa’s proposal introduces a method wherein the user’s gas fee payment is first processed off-chain via a Visa card.
Then, the equivalent amount is efficiently handled on-chain for subsequent payments on the user’s behalf. This process is similar to what’s obtainable in conventional card payment transactions.
Visa’s Innovative Gas Fee Solution
The underlying architecture established by Visa to facilitate seamless off-chain gas payment capability revolves around a sophisticated ‘Verifying Paymaster’ smart contract tool. This contract delegates all essential checks and data-sourcing tasks to an off-chain component.
Then, the on-chain paymaster smart contract leverages the information and authorization granted by the off-chain counterpart to validate and execute the gas fee payment efficiently. The intricate payment orchestration is executed through Cybersource, an automated payment service platform for generating a secure digital signature.
The successful verification of this signature signals the receipt of the card payment by the web service, effectively reducing operational costs. In such instances, the paymaster contract functions flawlessly to complete the associated gas fee payments.
Visa has actively engaged in pilot tests of this revolutionary idea on the Ethereum Goerli testnet. The initiative leverages readily available open-source resources like Stackup’s userop.js library. The trial transactions have been successful. Hence, Visa plans to launch this solution soon.
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