Automatic payments on Ethereum? Visa says it’s possible

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Key points Visa believes that automatic payments on Ethereum are possible. The company shared a technical paper claiming that account abstraction would allow self-custodial wallets to set up automatic payments in a convenient way. Account abstraction could also enable new forms of multi-owner accounts and public accounts. Share this article

Visa is trying to get automatic payments on Ethereum by creating a new kind of wallet, a process the company calls “account abstraction.”

Mix wallets and smart contracts

Visa is exploring ways to help the Ethereum ecosystem grow.

Today, the payments giant released a technical paper in which it explored the possibility of developing an automatic payment system for self-custodial wallets on Ethereum.

“Online bill payment is growing rapidly and customers, especially younger ones, expect to be able to set up recurring payments and enjoy other conveniences associated with using their Visa cards,” the newspaper states, before claiming this payment facility. is the main reason customers tend to switch payment methods.

Enabling automatic payments for self-custodial wallets is a challenge, as the idea eventually involves giving access to one’s private keys to a smart contract to make payments on its behalf. This is because automatic payments can potentially threaten the security provided by self-custody.

According to the Visa team, the solution to this problem comes in the form of account abstraction, i.e. a combination of user wallet and smart contracts in a single Ethereum account. This would give more flexibility to the process of validating a transaction on the blockchain: among other things, Visa believes that it would allow multi-owner accounts (via multi-sig) and public accounts from which anyone could make a transaction.

Concretely, users could create a whitelist of pre-approved automatic payments on a “delegable account”, which would not require the owner’s signature each time a payment is made.

It remains to be seen whether account abstraction is all that Visa claims to be. The team claimed that “because [an auto payment contract] is a smart contract, a user can trust that [it] cannot execute in any way other than the way it is written,” a phrase that might sound a little naïve to crypto natives who have already seen their wallets depleted when accidentally signing a contract. clever malevolent.

Disclaimer: At the time of writing this article, the author of this article owned BTC, ETH, and several other crypto assets.

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