Visa Tests: A Way to Pay Ethereum Gas Fees Easier

Most people find it difficult to pay fees on the Ethereum ‌blockchain.

Visa (V)​ believes‍ this to be true. The company announced in a blog post ⁤Thursday that it has completed testing a way for users⁣ to⁢ pay for “gas ⁣fees” in fiat ⁤currency using their credit cards.

The payments company ⁣stated that ⁤blockchain technology could “shape future money movements” and that ‌it⁢ has become widespread in recent years. ⁣However, the processing‍ of transactions is‌ still⁤ too complicated for many users.

Users are charged gas⁢ fees for each transaction. This includes sending and accepting Ether (ETH), a ​native‌ cryptocurrency on the Ethereum blockchain. Visa explained in a blog post that managing a user’s ETH to cover these ⁢costs can⁤ be “cumbersome.” Visa said removing the complexity of blockchain transactions could make them more user-friendly and accessible.

Visa stated, “When you compare the complexity of blockchain transactions to the simplicity of the fiat-based payments supported by the Visa network, it is obvious that improvements ⁢are needed.”

Visa‌ proposes a solution to⁣ Closing this gap: the ERC-4337 standard for Ethereum, which ​allows smart contracts on blockchains to act as wallets⁣ through an “account abstraction” process, and ⁣a ⁢Paymaster Contract, a smart contract account that‍ sponsors fees in ⁢gas name of the user. Visa could allow users ⁤to pay‌ for gas directly with their Visa card.

This process was ‌tested on the Ethereum Goerli Testnet, an Ethereum network.

Visa indicated ​that decentralized merchants⁢ or applications could​ use their Paymaster system or⁣ an existing wallet to make ​transactions more convenient. Paymaster service providers can also offer ⁣card-based payment ‍of gas fees, among other ⁣things.

For several years, the payment company ⁤has been experimenting in the crypto space. Visa began investigating how to convert digital currencies into fiat currency in⁢ February.