Visa Collaborates with Ethereum Network on Automatic Payments

Visa Collaborates with Ethereum to actively contribute to the development of the Crypto Industry

Global payments company Visa has shown its stronger, sustained interest in crypto on Monday, releasing a paper outlining its plan of collaboration with the Ethereum network on automatic payments. Visa Collaborates with Ethereum with a desire to take the crypto market to the next level. 

The paper, sparked by an internal company hackathon held earlier this year, presents how Ethereum users could—with support from Visa—schedule crypto auto-payments sent from self-custodial crypto wallets. Visa aims to contribute to crypto development and such capability is presently not available on the Ethereum mainnet, but would be enabled by a popular Ethereum proposal called "Account Abstraction," which would allow Ethereum user accounts to function like smart contracts and feature pre-scheduled execution functions. Visa collaborates with Ethereum to make crypto payments to the mainstream. 

Though crypto auto-payments would not have a dramatic impact on the banking and payments landscape, it seems that Visa is planning to become an active player in crypto, a sector it sees as potentially critical to the long-term future of payments. "We want to have an opportunity to actively contribute to technical developments happening in the crypto ecosystem," Catherine Gu, Visa's Head of CBDC and Protocols, told Decrypt. "The best way to do that is learning by doing—actually getting deeper into Web3 infrastructures and blockchain protocols, areas I think are going to be really important for payments."

Gu's group, first organized to dive deep into the potential of digital currencies backed by world governments, is now actively investigating what other blockchain technologies are poised to reshape the world of payments—and how soon their adoption could be implemented. "This technology is very nascent right now, but there could be something there down the road," Gu commented. "A lot of research needs to be done around fundamental aspects important for payments, like security and scalability."