Visa, one of the top global payment processors, has shown interest in crypto following a paper release that outlines how the company plans to partner with the Ethereum blockchain on automatic payments. Visa released the paper on Monday. It explains how Ethereum users, supported by Visa, could schedule auto-payments directly from their crypto wallets.
As of now, the Ethereum mainnet does not support that capability. However, the network’s proposal, called Account Abstraction, will allow Ethereum users’ accounts to function similarly to the Smart contracts and have pre-scheduled execution features if enabled.
Even though crypto auto-payments would not significantly impact payments and the banking landscape, it further indicates that Visa plans on actively playing a role in the crypto space, an industry the company sees as critical to the future of payments.
Visa Director of CBDC and Protocols, Catherine Gu, says that the payment processor wants to contribute to the technical developments that are constantly taking place in the crypto industry. She adds that diving deeper into blockchain technology and Web3 infrastructures is the proper way to do so.
Also read:Visa’s Catherine Gu Claims Blockchain Technology Mass Adoption Could Take a While
Currently, Gu is investigating how blockchain technology will reshape payment processing and how soon it will be adopted. However, she admits that the mass adoption of this technology will take some time as it requires a lot of research around critical aspects like scalability and security, which are necessary for payments.
For years, blockchains’ primary goal has been scalability. Ethereum network, for example, seeks to maintain network security while processing cheap and almost instant transactions on a large scale. The chain is building a system called Proto-danksharding, which could tackle this problem. Recently, Ethereum announced that the system would launch later next year.
If only blockchains like Ethereum can achieve scalability, top firms like Visa can likely integrate them. The payments firm continues to engage with Ethereum’s core developers and remains optimistic that scalability is within reach.
Visa Ends Partnership With Crypto Exchange FTX
Gu says blockchain technology may have real utility, and that is why Visa is investing more in Web3 and forming collaborations. For example, in October, Visa announced a partnership with FTX that would allow users of the exchange to own Visa debit cards. However, a few weeks later, the payments company denounced the alliance after FTX got exposed as a Ponzi scheme.
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