Visa has developed an auto-payment solution on the Ethereum blockchain
In a new concept, the payment company uses a proposal from Ethereum developers that will allow it to automatically make pre-scheduled payments from non-custodial users' wallets
Visa has developed a blockchain-based auto-payment solution. A document published by the company details a new concept based on Account Abstraction (AA) technology from Ethereum developers. It will enable the implementation of automatic pre-planned payments using smart contracts in non-custodial users' wallets.
Account Abstraction technology was proposed back in 2016. Since the core Ethereum network does not yet support AA, the payment company implemented its solution in StarkNet, a second-tier blockchain built on top of the Ethereum blockchain. StarkNet's account model uses AA technology.
Whereas regular accounts verify that a transaction is properly signed for a specific address, in StarkNet they simply verify that the transaction is coming from a given address. In addition, Visa's introduction of the concept into this blockchain has not only enabled the deployment of a new auto-payment feature but also increased transaction throughput, according to the report.
Visa notes that it sees autopay as a key functionality that is missing from its existing blockchain infrastructure, and suggests that interested companies working in this area work together on programmable payments projects.
Payment companies from the traditional financial industry have started to develop blockchain and cryptocurrency projects more actively this year.