Visa Offers Automatic Payment Plan
Global lending giant Visa is exploring smart contracts and programmable payments to allow Ethereum holders to make automatic payments.
The payments giant published an article outlining how to collaborate with the Ethereum network in a blog post on Monday, Dec. The article, which resulted from an in-house hackathon held earlier this year, details how Ethereum users can schedule automatic payments from self-protected crypto wallets with the support of Visa.
Of course, no such capability is currently available on the Ethereum mainnet, but it will be enabled through a popular Ethereum offering called “Account Abstraction” that allows Ethereum user accounts to work like smart contracts and have pre-scheduled execution functions. By using account abstraction, Visa has announced that it can combine the functions of user accounts and smart contracts into a single type of Ethereum account. The company called this resulting account the “representable account”.
In case of the realization of this project, which is still under development, banks and central third parties will be excluded from the transactions.
At the same time, this project, which the payment giant is considering to implement, is seen as another sign that it plans to be an active player in the cryptocurrency space.
“We want to actively contribute to the technical developments that are occurring in the crypto ecosystem,” said Catherine Gu, the company’s Head of CBDC and Protocols, and added: “The best way to do this is to learn by doing. In fact, going deeper into Web3 infrastructures and blockchain protocols are areas that I think will be really important for payments.”
Stating that this technology is currently under development, Gu stated that much more research needs to be done on key aspects that are important for payments, such as security and scalability.
Visa stated that StarkNet, which is built on Ethereum, can be actively used for payments for this project it is working on. In the tech giant’s thinking, StarkNet could provide convenience to personal wallet holders. It is intended to bridge the gap between the real world and crypto by allowing users to make automatic payments more easily.
If such a system is integrated into the crypto industry, first Ethereum and then the entire crypto money market will certainly be positively affected by this development. The fact that a payment giant like Visa is so closely involved with the cryptocurrency space can also be considered as one of the positive developments for the industry.
ETH Price Analysis
Ethereum, which has experienced a price increase of more than 2% in the last 24 hours, continues its price activity at the level of $ 1,209. If the bullish momentum continues, the resistance levels we will follow are located in the $1,280 and $1,355 zones. In case of a possible pullback, Ethereum could experience a pullback to the $1,200 support. The support level to be followed after a decline from there is located in the $1,140 region.