Visa seeks to enable automatic payments through self-custodial crypto wallets: details
Visa is looking to bring crypto into more everyday use cases. The payments giant could be rolling out a feature that would allow users to make their phone and electricity payments through self-custodial crypto wallets. Currently, several banks allow their customers to integrate their accounts with subscription services. This automatically deducts monthly charges for utilities and keeps the cycle running. Visa is essentially looking to launch similar services, but keeping crypto at its core.
Self-custodial crypto wallets allow crypto holders to hold their own private keys, rather than relying on a decentralized exchange, which could be prone to exploits or hacks.
As part of its outlook, members of Visa’s crypto team have proposed enabling automatic “withdrawal” of funds from self-custodial wallets built on the Ethereum blockchain. If this plan is executed, the need for users to manually sign each transaction would be eliminated once and for all.
“Visa explains how to write a smart contract request for a self-service wallet. This application could allow a user to set up a programmable payment instruction that can automatically transfer funds from one autodepository wallet account to another at recurring intervals. This solution leverages a concept known as “Account Abstraction (AA),” a developer proposal currently being explored within the Ethereum ecosystem,” Visa wrote in an official blog post.
Founded in 1958 by Bank of America, Visa is believed to have nearly 800 million cardholders outside the United States and approximately 345 million customers in the United States.
Currently, the payment company has deployed a special team, dedicated to research and development around blockchain-based payment solutions.
The company conducts studies on the security, privacy, scalability, and interoperability of various blockchain protocols and how they can be used.
“We are focused on building our core competencies in the Web3 infrastructure layers and blockchain protocols that drive crypto development,” said Catherine Gu, CBDC and Protocols Manager at Visa.
The payment company has launched several projects that put cryptocurrencies at the forefront of usability for everyday transactions.
Earlier this year, for example, Visa launched a creative program to help digital-age artists understand and use NFTs.
In January this year, Visa also disclosed that its customers made $2.5 billion (approximately Rs 18,685 crore) in payments using its crypto cards in the first fiscal quarter of 2022. ends on December 31. This volume, put into perspective, accounted for more than 70% of all crypto card volume throughout fiscal year 2021 which ended September 30, 2021, signaling an increase in adoption of crypto payments over the course of 2021. these months.