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Visa Tests: A Simple Method for Paying Ethereum Gas Fees

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According to the company, the procedure is too complicated for most people.

For the majority of individuals, paying transaction fees on the Ethereum blockchain is too difficult.

Visa (V), a major issuer of credit cards, holds this view. The business announced in a blog post on Thursday that testing of a new method to let consumers pay the costs, sometimes known as “gas fees,” in fiat currency with their credit card is now complete.

Blockchain technology, which has seen increasing acceptance in recent years, could “shape the future of money movement,” according to the payments provider. However, the majority of consumers still find it difficult to facilitate transactions on-chain.

Ethereum transactions require gas fees. That includes blockchain-based ether (ETH) transfers. Visa’s blog article called managing ETH balances to satisfy those expenses “burdensome.” Visa added that simplifying blockchain transactions might make them easier.

“When comparing the complexity of blockchain transactions with the simplicity of fiat-based payment transactions supported by the Visa network, it becomes evident that improvement is needed,” Visa said.

Visa advises using Ethereum’s ERC-4337, the current standard that allows smart contracts on the blockchain to serve as wallets via “account abstraction,” and a paymaster contract, a smart contract account that can sponsor gas fees on behalf of the user, to bridge the gap. Users could immediately pay for gas with Visa cards.

The Ethereum Goerli “testnet,” a test network for Ethereum, was used to test this procedure.

According to Visa, businesses or decentralized applications might use an existing wallet or their paymaster system to facilitate transactions. In addition to other possibilities, the paymaster service providers might give a card-based gas fee payment option.

The payments business has been experimenting with several projects for a long now in the cryptocurrency space. Visa investigated the process of converting digital assets into fiat payments in February.

Jay Solano

Jay Solano

Jay is a crypto and NFT enthusiast dedicated to exploring the dynamic world of digital assets. As a crypto blog writer, he is sharing his knowledge of the latest trends, breakthroughs, and investment opportunities in the blockchain world.

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