Visa Came Up with an Idea That Will Allow Auto Payments Directly from a Crypto Wallet
Automatic payments are already commonplace in the world of banking. But Visa came up with a way to introduce blockchain technology into this feature.
Visa, a giant in the world of banking, claims that one day users will be able to automatically pay for services and bills through their crypto wallets.
On December 20, Visa reported that their analytics team came up with the idea to automatically work with Ethereum-based crypto wallets without requiring customers to sign and confirm.
Automatic payments are already a familiar feature. In this way, millions of users around the world pay utility bills, phone bills, Netflix subscriptions, and so on.
This technology is not suitable for self-storage wallets. After all, automatic payments require a lot of engineering work.
Visa also revealed that regular automated payments will be possible through a new kind of wallet called Delegated Account with Account Abstraction Technology (AA).
Vitalik Buterin, the co-founder of Ethereum in 2015, put forward a concept that involves combining Ethereum-based wallets and smart contracts into one account.
This technology will allow customers to set up a payment instruction that will be able to pay funds automatically from one account to another. This is a friendly reform that will allow you to relax the rules of Ethereum wallets.
Exchange-type wallets can be easily used for automatic payments. In this case, the user must be 100% sure of the honesty of all transactions.
But there is evidence that this contains a fairly large risk. Especially when you consider the companies FTX, Voyager, BlockFi, and Celsius, which went bankrupt.
Visa also emphasizes that AA is just one of the ideas that could greatly improve Ethereum. But to implement this plan is quite difficult because of the need to make changes to the security protocol.
But now, Visa has successfully tested accounts on the blockchain for layer 2 scaling of StarkNet, a network that supports AA.
And the conclusion of the blog post is that auto payments with cryptocurrencies will appear very soon because the Visa team is actively working on this and has already achieved a number of successes.